Bandhan Money Manager Fund - Direct Plan
Bandhan Money Manager Fund - Direct Plan
An open ended debt scheme investing in money market instruments. A scheme with relatively low interest rate risk and relatively low credit risk.
What is the Meaning of a Money Market Mutual Fund?
Money manager funds, also known as money market mutual funds are a short-term and relatively higher liquid debt investment scheme. Money market mutual funds invest in money market securities with relatively low-interest rate risk and relatively low credit risk.
There are several types of money market instruments in India:
Commercial Papers: Companies with a high credit rating may issue commercial papers. These are short-term, unsecured, promissory notes.
Treasury Bills: The government of India issues treasury bills to raise funds for 365 days. Treasury bills are associated with a low level of risk as they are issued by the government.
Certificates of Deposit: Certificates of deposit (CDs) are offered by scheduled commercial banks. These do not have an option for premature redemption.
Bandhan Money Manager Fund aims to provide investors an opportunity to invest in potentially low-risk and short-term securities. While money manager mutual funds are considered a low-risk investment, they may be vulnerable to certain risks.
As money manager funds invest in fixed-income securities they may be vulnerable to interest rate risk or price risk. Money market mutual funds may further be subject to reinvestment risk as the interest rates on maturity may differ from the original coupon of the bond.
Money manager funds are subject to LTCG and STCG tax. LTCG tax is levied on investments held for more than three years at 20% after indexation benefits. STCG tax is levied on securities held for less than three years. Gains are added to the investor's income and taxed according to their income tax slab.
- Min Investment 100
- Min SIP Amount 100
- Exit LoadNil
Scheme is suitable as 'Core' debt allocation and is recommended for a minimum investment horizon of 6 months
Tier 1 Benchmark : NIFTY Money Market Index A-I (w.e.f. 1st April 2022)Alternate Benchmark : CRISIL 1 Year T-Bill 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 | 18/02/2003 Since inception | 1 year | 3 year | 5 year | 10 year | 18/02/2003 Since inception | |
| Bandhan Money Manager Fund - Regular Plan - Growth | 7.00 | 4.90 | 5.07 | 6.21 | 6.37 | 10,702 | 11,548 | 12,811 | 18,279 | 36,818 |
| 7.43 | 5.48 | 5.41 | 6.63 | 7.11 | 10,738 | 11,731 | 13,018 | 18,997 | 42,627 | |
| 7.32 | 5.11 | 5.50 | 6.43 | 5.92 | 10,734 | 11,616 | 13,076 | 18,662 | 33,674 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Brijesh Shah (w.e.f 12/07/2021) & Mr. Gautam Kaul (w.e.f 01/12/2021)
View fund performance of other funds managed by Mr. Brijesh Shah, Mr. Gautam Kaul
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 Money Manager Fund
(Scheme Risk-o-meter)
NIFTY Money Market Index A-I (w.e.f. 1st April 2022)
(Tier 1 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking* :
- To generate short term optimal returns with relative stability and high liquidity.
- Investments predominantly in money market instruments.
Who Should Invest in Bandhan Money Manager Fund?
Bandhan Money Manager Fund is a relatively low-risk and highly liquid debt scheme. Investors with a low-risk appetite seeking liquid investments may benefit from money market funds. However, all mutual funds are subject to market risks; money manager funds may be vulnerable to interest-rate risk, credit risk, re-investment risk, basis risk etc. Investors must analyse their risk appetite before investing in any scheme.
Investors seeking short-term investments in money market instruments such as government securities, certificates of deposits, treasury bills, commercial papers etc. may be suitable for money market mutual funds.
Investors seeking to potentially generate short-term optimal returns with relatively higher liquidity may potentially benefit from investing in money manager funds.
Money market mutual funds may not be suitable for investors seeking tax-saving investment options as they are subject to STCG and LTCG tax.
FAQs on Money Market Mutual Funds
What is a Money Market Mutual Fund?
Money Market Mutual Funds are an open-ended debt scheme that invests in money market instruments such as treasury bills, certificates of deposits, government securities, commercial papers etc. These are relatively low-risk and may be suitable short-term investments.
Are Money Market Mutual Funds returns high?
Money Market Mutual Funds are a low-risk-return investment option. As these funds invest in low-risk securities, their returns may potentially be lower.
How to invest in Money Market Mutual Funds?
Investors can invest in Money Market Funds via the AMC’s website or through a broker/financial advisor. You must first determine the mode of investment, i.e. SIP or lumpsum. After determining the investment amount, you can login to your account on our website and invest in the fund.
Are Money Market short-term Funds risky?
No, Money Manager Mutual Funds are a relatively low-risk investment. They invest in money market instruments with relatively low-interest rate risk and low credit risk. Moreover, they are relatively a higher liquid investment option.
Are Money Manager Funds tax-saving?
No, Money Manager Funds are not a tax-saving investment. They are subject to STCG and LTCG tax. STCG tax is levied on investments held for less than three years. The gains are added to the investor's income and taxed according to their income tax slab. LTCG tax is levied on investments held for over three years at 20% after indexation benefits.
Are Money Manager Funds a suitable long-term investment option?
No, Money Manager Mutual Funds are usually a short-term investment option. They may be a suitable option for investors with a short-term investment horizon.