Bandhan Banking & PSU Debt Fund - Direct Plan
An open ended debt scheme predominantly investing in debt instruments of banks, Public Sector Undertakings, Public Financial Institutions and Municipal Bonds. A scheme with relatively high interest rate risk and relatively low credit risk.
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What is a Banking and PSU Debt Fund?
Imagine a secure space for your savings, where stability meets growth potential. Banking & PSU Debt Funds, a type of debt fund, offer this by investing primarily in banking institutions and public sector undertakings (PSUs).
Whether you’re saving for a rainy day or seeking relatively steady returns with low risk, these funds offer a dependable option. It’s like having your money managed by some of the most trusted institutions, giving you peace of mind.
These funds are required to invest at least 80% of their assets in debt and money market instruments issued by PSUs, banks, or Public Financial Institutions (PFIs). The Bandhan Banking & PSU Debt Fund offers relatively high liquidity, primarily investing in AAA-rated debt instruments. The liquidity of these funds makes them a suitable option for investors looking to build an emergency fund.
Banking & PSU Debt Funds are taxed like any other debt fund. Capital gains are taxed based on the holding period. Gains from units held for less than 3 years are classified as short-term and taxed according to the investor's income tax slab. Gains from units held for more than 3 years are considered long-term and taxed at 20%.
While Banking & PSU Debt Funds are considered low to moderate risk investments, they are not risk-free. These funds may face inflation and interest rate risks.
- Min Investment 1,000
- Min SIP Amount 100
- Exit LoadNil (w.e.f. June 12th 2017)
Scheme is suitable as 'Core' debt allocation and is recommended for a minimum investment horizon of 3 years
Tier 1 Benchmark : Nifty Banking & PSU Debt Index A-IIAlternate Benchmark : CRISIL 10 Year Gilt Index
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Performance as on 31st October 2024
| Scheme Names | CAGR Returns (%) | Current value of Investment of 10,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 3 year | 5 year | 10 year | 07/03/2013 Since inception | 1 year | 3 year | 5 year | 10 year | 07/03/2013 Since inception | |
| Bandhan Banking & PSU Debt Fund - Regular Plan - Growth | 7.73 | 5.77 | 6.34 | 7.28 | 7.54 | 10,776 | 11,839 | 13,604 | 20,205 | 23,339 |
| 7.90 | 5.55 | 6.14 | 7.15 | 7.41 | 10,792 | 11,761 | 13,478 | 19,962 | 23,024 | |
| 10.67 | 5.60 | 5.44 | 6.91 | 6.43 | 11,070 | 11,777 | 13,037 | 19,512 | 20,691 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Suyash Choudhary (w.e.f 28/07/2021) & Mr. Gautam Kaul (w.e.f 01/12/2021)
View fund performance of other funds managed by Mr. Suyash Choudhary, 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/46xQzi1
Bandhan Banking and PSU Debt Fund
(Scheme Risk-o-meter)
Nifty Banking & PSU Debt Index A-II
(Tier 1 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking* :
- To generate optimal returns over short to medium term.
- Investments predominantly in debt & money market instruments issued by PSU, Banks & PFI.
Who Should Invest in Banking & PSU Debt Funds?
Banking & PSU Debt Funds primarily invest in AAA-rated debt instruments, offering a low to moderate risk profile. With potential returns in the short to medium term, they are suitable for risk-averse investors with a short to medium-term investment horizon.
Additionally, these banking & PSU debt funds offer relatively high liquidity, making them suitable for investors seeking easy access to funds for emergencies.
FAQs on Banking & PSU Debt Funds
What is a Banking and PSU debt fund?
A banking and PSU debt fund is a mutual fund scheme that is mandated to invest 80% of its corpus in debt and money market securities issued by banks, banking institutions and public sector undertakings .
Are banking and PSU debt funds safe?
Banking and PSU mutual funds are classified as a low to moderate-risk investment option as they invest in securities backed by the government. Moreover, they are less likely to be vulnerable to credit risk and may be suitable for risk-averse investors.
How are banking mutual funds taxed?
The taxation of banking & PSU debt funds depends on when the units are redeemed. Units redeemed under 3 years are taxed according to the investors income tax slab. Investments redeemed after 3 years are categorised as long term capital gains and are taxed at 20%.
What are the benefits of banking & PSU mutual funds?
Banking & PSU debt funds are classified as a low to moderate risk debt fund investment. They may be beneficial to risk-averse investors seeking returns. Moreover, they are a liquid investment option, and may be beneficial in case of emergencies.
What are the disadvantages of banking and PSU funds?
These funds are suitable for investors seeking potential returns. These funds are a short to mid-term investment option, and may not be suitable to meet long-term investment goals. As a debt MF, they may be subject to inflation risk and interest rate risk.
What do banking and PSU debt funds invest in?
Banking & PSU debt funds invest in debt and money market instruments. They are mandated to invest 80% of their corpus in debt instruments issued by PSU, banks and PFIs.