Bandhan Bond Fund Medium Term Plan - Direct Plan
Bandhan Bond Fund Medium Term Plan - Direct Plan
An open ended medium term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 3 years and 4 years. A scheme with relatively high interest rate risk and relatively low credit risk.
What is a Bond Fund Medium Term Plan?
Bond mutual funds are a type of investment scheme that invests in bonds. These bonds may be issued by the government, and municipal bodies, or corporates to raise money. Bandhan Bond Fund Medium Term Plan is a debt scheme that invests in high-quality debt and money market instruments with a Macaulay duration of 3 to 4 years. These securities have a relatively high interest rate risk and relatively low credit risk.
Investing in this medium-term bond fund may be moderately risky as its corpus fundamentally comprises debt and money market securities with a medium term maturity period. These securities may include:
● Government-issued securities: Coupon bearing bonds, zero coupon bonds, treasury bills, cash management bills.
● Corporate and/or government-issued debt instruments
● Debt securities issued by public and private sector corporates: Bonds, debentures, notes, strips, etc.
● Obligations of banks and financial institutions.
● Certificates of Deposit (CD), Commercial Papers, and money market instruments as permitted by the mandate.
Bandhan Bond Fund Medium Term Plan invests primarily in debt instruments such as bonds. It does not diversify its holdings across asset classes, which may potentially increase the level of risk and potentially impact the bond fund’s returns. This fund invests in securities with a relatively high-interest rate risk and may be vulnerable to interest rate fluctuations. Bond funds may also be vulnerable to other types of risks such as reinvestment risk, spread risk, default risk, market risks, and liquidity risk.
Bond funds in India are taxed based on their holding period. Units held for over three years are subject to LTCG tax at 20%. Units held for less than three years are taxed as STCG; bond fund returns are added to the investor's income tax and taxed according to their income tax slab.
- Min Investment 1,000
- Min SIP Amount 100
- Exit LoadNil
Scheme is suitable as 'Core' debt allocation and is recommended for a minimum investment horizon of 3 years
Tier 1 Benchmark : NIFTY Medium Duration Debt Index A-III (w.e.f. 1st April 2022)Alternate Benchmark : CRISIL 10 Year Gilt Index
Tier 2 Benchmark : NIFTY AAA Medium Duration Bond Index
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Performance as on 28th March 2024
| Scheme Names | CAGR Returns (%) | Current value of Investment of 10,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 3 year | 5 year | 10 year | 08/07/2003 Since inception | 1 year | 3 year | 5 year | 10 year | 08/07/2003 Since inception | |
| Bandhan Bond Fund - Medium Term Plan - Regular Plan - Growth | 6.76 | 4.31 | 5.87 | 6.92 | 7.10 | 10,677 | 11,354 | 13,307 | 19,530 | 41,476 |
| 7.56 | 5.01 | 7.14 | 7.87 | 7.34 | 10,752 | 11,578 | 14,121 | 21,332 | 43,428 | |
| 7.37 | 4.97 | 7.22 | 7.95 | 7.54 | 10,732 | 11,563 | 14,172 | 21,482 | 45,173 | |
| 8.57 | 4.22 | 6.11 | 7.09 | 5.80 | 10,859 | 11,320 | 13,458 | 19,852 | 32,194 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Suyash Choudhary (w.e.f 15/09/2015)
View fund performance of other funds managed by Mr. Suyash Choudhary
Past performance may or may not be sustained in future.
Regular and Direct Plans have different expense structure. Direct Plan shall have a lower expense ratio excluding distribution expenses, commission expenses etc.
Taxation:
For taxation, please refer the link : https://bit.ly/3spfzbo
Bandhan Bond Fund Medium Term Plan
(Scheme Risk-o-meter)
NIFTY Medium Duration Debt Index A-III (w.e.f. 1st April 2022)
(Tier 1 Benchmark Risk-o-meter)
NIFTY AAA Medium Duration Bond Index
(Tier 2 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking* :
- To generate optimal returns over medium term
- Investments in Debt & Money Market securities such that the Macaulay duration of the portfolio is between 3 years and 4 years
Who Should Invest in Medium-Term Bond Funds in India?
Bandhan bond fund medium term plan invests in securities with a maturity period of 3-4 years. This fund may be suitable for investors with a medium-term investment horizon. This maturity period may potentially help investors achieve their medium-term goals.
Investors seeking high-risk-return investments may not be suitable for this fund. Bond mutual funds are moderately risky investments and aim to generate optimal returns over the course of three to four years.
Investors with a significantly low risk tolerance may not be suitable for this bond mutual fund as this scheme invests in securities with a relatively high-interest rate risk. Moreover, this bond fund is not a diversified scheme; it invests a majority of its corpus in only one asset class, which may increase the risk.
Bandhan bond fund may be suitable for investors seeking investments in bonds issued by the government and/or corporates, debt, and money market securities.
FAQs on Bond Funds Medium Term Plan
What are bonds in mutual funds?
Bonds are fixed-income investments that are loans given by an investor to the issuing authority, such as government bodies or corporates. Mutual funds with bonds invest in bonds issued by government bodies and/or corporates based on their investment strategy. Investors investing in bond funds aim to generate optimal returns once the bond has matured.
What is a medium-term bond fund?
Bond funds invest in bonds issued by government bodies or corporations. Medium-term bond funds invest in bonds with a maturity period of three to four years. They are a moderately risky investment and aim to potentially generate optimal returns.
What are the types of bond funds?
There are several types of bond funds and they may differ based on the issuing authority of the bonds they are invested in, for example, government bond funds, corporate bonds, municipal bond funds, etc. Bond mutual funds may also be differentiated based on their maturity period, for example, medium-term bond funds, long term bond funds, short term bonds, etc.
How to start investing in bond funds in India?
Investors can invest in bond funds in India by visiting our website. Identify the bond fund that suits your risk appetite and investment horizon. Click on the “Invest Now” button and fill in the required information.
Are bond mutual fund medium term plans risky?
Bond fund medium term plans are a moderately risky investment. They invest in securities with a relatively high-interest rate risk and may consequently be vulnerable to interest rate risks. Other risks may include market risk, liquidity risk, concentration risk, reinvestment risk, and spread risk.