Bandhan MF introduces Nifty IT Index Fund to seize growth potential in Indian IT sector

Bandhan Mutual Fund on August 18 introduced the Bandhan Nifty IT Index Fund, which is an equity scheme available for continuous investment. The fund is designed to mirror the performance of the Nifty IT index, with the objective of capitalising on the promising growth prospects within the Indian Information Technology (IT) sector. Investors can participate in the New Fund Offer (NFO) until Monday, August 28, 2023.

In an exclusive conversation with CNBC-TV18, Gaurab Parija, the Head of Sales & Marketing at Bandhan AMC, highlighted the remarkable trajectory of the IT index as one of the most consistently high-performing sectors over the years. According to Parija, Bandhan AMC sees the IT sector as an incredibly compelling theme to explore.

Market reports project a noteworthy surge in IT spending, expected to double over the next 5-10 years, catapulting from the current 5 percent to a significant 10 percent.

While acknowledging a short-term underperformance of the IT sector, experts underscore the presence of a substantial runway for this core sector within IT. The long-term outlook remains robust, with the sector poised to capitalise on emerging opportunities and navigate challenges effectively.