Bandhan Nifty Bank Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 11, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Bandhan Nifty Bank Index Fund Direct Growth Plan currently has a NAV of ₹11.1065 as of 10 Sep 2026 and a scheme AUM of ₹20 Cr. Its 1-year, 3-year and 5-year returns are 3.84%, 0% and 0%, and the fund sits in the High Risk bucket. Our view is that this is a bank-focused index fund for investors who want concentrated exposure to the banking segment and can tolerate noticeable swings rather than smooth compounding.
The fund’s short history and sector concentration matter more than the headline NAV. Recent returns are positive, but the longer record is still too short to show a settled compounding pattern. That makes it more suitable for investors who can stay patient through uneven phases and who want a narrow market slice rather than a diversified core equity allocation.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹11.1065 as of 10 Sep 2026 |
| AUM | ₹20 Cr |
| Expense Ratio | 0.21% |
| Launch Date | 27 Aug 2024 |
| Min SIP | ₹100 |
| Risk Category | High Risk |
| Benchmark | Nifty 50 |
| Fund Category | Index Funds |
| Exit Load | 0.25% on or before 15D, Nil after 15D |
| Fund Managers | Abhishek Jain, Mayuresh Nagvekar |
The fund is managed by Abhishek Jain and Mayuresh Nagvekar.
Source data date: as of 10 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -1.7% | -4.06% |
| 3M | 2.73% | 1.37% |
| 1Y | 3.84% | -7.31% |
| 3Y | Data not available | Data not available |
| 5Y | Data not available | Data not available |
The last year has been the clearest positive stretch for the fund. It ended in positive territory while the benchmark was negative over the same period, which tells us the portfolio has held up better than the reference index across that window. The 3-month figure is also stronger than the benchmark, so the recent run has not been a one-off.
The shorter-term path has still been uneven. The monthly pattern shows a fund that moved through several small advances and setbacks rather than a straight upward climb, which is typical of a bank-only exposure. That kind of behaviour can suit investors who are comfortable with periodic drawdowns and who judge the fund over full cycles, not over a few weeks.
Longer-term interpretation needs caution because the scheme has only been live since August 2024. The available record does not yet show a mature 3-year or 5-year compounding history, so our view is that the current evidence is better read as an early performance snapshot than as proof of a stable long-run track record.
Compared with the benchmark, the fund appears to have done better in the most recent periods available. That said, a bank index fund can diverge sharply from a broad market yardstick when financials are strong or weak, so the relative lead here should not be assumed to persist in every market phase.
Source data date: as of 10 Sep 2026
Should you BUY or HOLD Bandhan Nifty Bank Index?
A fund’s past returns alone don’t tell you whether you should buy it today or continue holding it.
The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.
Already holding Bandhan Nifty Bank Index? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Bandhan Nifty Bank Index Fund Direct Growth Plan | 3.84% | Data not available | Data not available |
| ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan | 33.08% | 30.07% | Data not available |
| Motilal Oswal Nifty India Defence Index Fund Direct Growth Plan | 26.95% | Data not available | Data not available |
| Aditya Birla SL Nifty India Defence Index Fund Direct Growth Plan | 26.94% | Data not available | Data not available |
| Tata Nifty Capital Markets Index Fund Direct Growth Plan | 24.33% | Data not available | Data not available |
| Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan | 23.74% | Data not available | Data not available |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
The fund’s 1-year return is far below the strongest peer figures shown here, while its own history is also much shorter than several of the comparison funds. Because the peer set includes schemes with materially stronger 1-year and 3-year records, the contrast is not flattering on recent returns alone. At the same time, those peers are also from different themes, so the comparison mainly highlights how modest the bank-index result has been relative to the broader set of available return figures.
The story changes a little when we focus on what this fund is trying to do. It is a narrow sector index fund, so its return pattern should be judged more on consistency with its chosen segment than on broad-market leadership. The available figures still point to a weaker recent return profile than the peers listed above, and there is not yet a long enough history to claim that the longer-term picture is stronger. For now, the short-term evidence and the limited track record tell a similar story: caution is warranted.
Source data date: as of 10 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| HDFC Bank Limited | Bank | 18.17% |
| ICICI Bank Limited | Bank | 14.83% |
| State Bank of India | Bank | 10.07% |
| Kotak Mahindra Bank Limited | Bank | 9.3% |
| Axis Bank Limited | Bank | 8.8% |
| The Federal Bank Limited | Bank | 7.27% |
| Indusind Bank Limited | Bank | 5.48% |
| AU Small Finance Bank Limited | Bank | 4.7% |
| IDFC First Bank Limited | Bank | 4.66% |
| Bank of Baroda | Bank | 3.57% |
The top 10 holdings account for approximately 86.85% of the portfolio.
To see all holdings, visit the Bandhan Nifty Bank Index Fund Direct Growth Plan page
The largest holding, HDFC Bank Limited, carries 18.17% weight, so it is likely to have greater influence on the fund’s movement than any other single stock. The next few positions also remain large, with ICICI Bank Limited at 14.83% and State Bank of India at 10.07%, which means the top end of the portfolio is meaningfully concentrated in a handful of banks.
Weight does taper off after the biggest positions, but not sharply enough to make this look broadly diversified. Even the tenth holding still has a 3.57% weight, and the disclosed top 10 together account for 86.85% of the portfolio. With 14 total holdings disclosed and a long tail beyond the first 10, the fund may still have a broader set of names underneath, but the visible structure suggests that a few large bank positions will likely dominate short-term behaviour.
Source data date: as of 10 Sep 2026
Who should invest
This fund suits investors who can tolerate a High Risk profile and are comfortable with concentrated bank exposure. The available return pattern points to a short history that has been better recently than the benchmark, but not stable enough to treat as a full-cycle track record. That makes a longer horizon more relevant than a quick entry-and-exit view.
The main trade-off is straightforward: the portfolio gives focused exposure to banking stocks, which can help when the segment is in favour, but it also means the fund can move differently from a broad market index. Investors looking for a narrow tactical allocation or a satellite position may find the structure more relevant than those seeking a diversified core equity holding.
Tax and exit load
| Holding period | Tax rate | Description |
|---|---|---|
| Units held less than 1 year | 20% | Short-term capital gains tax |
| Units held more than 1 year | 12.5% | Long-term capital gains tax |
Exit load: 0.25% on or before 15 days, and nil after 15 days.
Source data date: as of 10 Sep 2026
Frequently asked questions
What is the current NAV of Bandhan Nifty Bank Index Fund Direct Growth Plan?
The current NAV is ₹11.1065 as of 10 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year return is 3.84%, while the 3-year and 5-year returns are both 0% in the available record. The scheme is still relatively new, so the longer-horizon figures are not yet established.
How has the fund compared with its benchmark?
It has done better than the benchmark over the recent periods shown. The 1-year figure is positive while the benchmark is negative, and the 3-month figure is also ahead of the benchmark.
How does it compare with the peer funds listed here?
Its recent return is well below the stronger peer figures shown in the comparison table. The peer set also includes funds with longer track records, which makes the gap in reported returns more noticeable.
What is the minimum SIP amount?
The minimum SIP amount is ₹100.
Who manages the fund and what is the exit load?
The fund is managed by Abhishek Jain and Mayuresh Nagvekar. The exit load is 0.25% on or before 15 days, and nil after 15 days.
Bottom line
Bandhan Nifty Bank Index Fund Direct Growth Plan has shown a better recent return pattern than its benchmark, but its history is still too short to treat the longer-term picture as established. On the available peer comparison, its return record trails the stronger figures shown there, especially over the 1-year window. The fund remains High Risk and is heavily shaped by large bank holdings, so it fits better as a focused, higher-volatility satellite exposure than as a broad diversified equity core.
Published on 11 September 2026 at 4:35 PM IST
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RIA disclosure
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.