Bandhan Bond Fund Income Plan - Direct Plan
An open ended medium term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 4 years and 7 years. A scheme with relatively high interest rate risk and relatively low credit risk.
What is a Bond Income Fund?
The Bandhan Bond Fund Income Plan offers a relatively steady approach for medium to long-term investors aiming for consistent income rather than high-risk, high-reward opportunities. By investing in a range of bonds, including government and corporate debt, this fund provides relative stability for those aiming for moderate risk and balanced returns.
The Bandhan Bond Fund Income Plan is a medium to long-term mutual fund that invests in government, municipal, corporate, and convertible bonds, with a Macaulay duration of 4 to 7 years. It prioritizes generating potential income, with lower credit risk but higher sensitivity to interest rate fluctuations.
Bandhan Bond Fund Income Plan is associated with a moderate level of risk as it primarily invests in debt and money market instruments. These securities may include:
● Government-issued securities (e.g., coupon-bearing bonds, treasury bills)
● Debt instruments from government-owned companies
● Debt securities from banks and financial institutions
● Certificates of Deposit, Commercial Papers, and other short-term instruments.
These securities must have a maturity period of 4 to 7 years. As a result, this bond income fund can be categorised as a medium to long-term bond fund.
The Bandhan Bond Fund Income Plan is debt-focused, lacking diversification across asset classes, which elevates risk. It is highly sensitive to interest rate changes and exposed to reinvestment, spread, default, and liquidity risks. Global factors and government policies may also influence its performance.
Bond funds are subject to debt fund taxation. Units held for over three years incur Long-Term Capital Gains (LTCG) tax at 20% with indexation benefits. Units redeemed before three years are taxed as Short-Term Capital Gains (STCG) based on the investor's tax slab.
- Min Investment 1,000
- Min SIP Amount 100
- Exit LoadIf redeemed/switched out within 365 days from the date of allotment: For 10% ofinvestment : Nil, For remaining investment : 1%If redeemed/switched out after 365 days from thedate of allotment: Nil
Scheme is suitable as 'Satellite' debt allocation and is recommended for a minimum investment horizon of more than 3 years
Tier 1 Benchmark : NIFTY Medium to Long Duration Debt Index A- III (w.e.f. 1st April 2022)Alternate 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 | 14/07/2000 Since inception | 1 year | 3 year | 5 year | 10 year | 14/07/2000 Since inception | |
| Bandhan Bond Fund - Income Plan - Regular Plan - Growth | 9.45 | 4.70 | 5.39 | 6.95 | 7.81 | 10,947 | 11,482 | 13,006 | 19,589 | 62,313 |
| 9.60 | 5.72 | 6.78 | 7.62 | N.A. | 10,963 | 11,822 | 13,884 | 20,856 | N.A. | |
| 10.67 | 5.60 | 5.44 | 6.91 | N.A. | 11,070 | 11,777 | 13,037 | 19,512 | N.A. | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Suyash Choudhary (w.e.f 15/10/2010)
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/46xQzi1
Bandhan Bond Fund Income Plan
(Scheme Risk-o-meter)
NIFTY Medium to Long Duration Debt Index A- III (w.e.f. 1st April 2022)
(Tier 1 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking* :
- To generate optimal returns over long term.
- Investments in Debt & Money Market securities such that the Macaulay duration of the portfolio is between 4 years and 7 years
Who Should Invest in Bandhan Bond Fund Income Plan?
Bandhan Bond Fund Income Plan is ideal for investors with a medium to long-term horizon, given its investment in bonds with maturities of 4 to 7 years. The longer duration may help investors achieve their long-term financial goals.
This fund is suited for investors with moderate risk tolerance. It is not ideal for those seeking either very low-risk or high-risk, high-return investments. It offers the potential for steady returns over the long term.
The Bandhan Bond Fund Income Plan may be suitable for those looking to invest in bonds, debt, and money market instruments. However, it may not be ideal for investors seeking diversification across multiple asset classes.
This fund is not suited for tax-saving purposes, as it is subject to STCG tax as per the investor's tax slab and LTCG tax at 20% (with indexation) for holdings over three years.
FAQs on Bond Funds Income Plan
What are Income Funds in India?
Income Funds in India invest in bonds, debt and money market securities. They aim to potentially generate income for the investor rather than creating wealth.
Is Bandhan Bond Fund Income Plan risky?
Bandhan Bond Fund Income Plan is categorised as a moderately risky investment option as it invests in securities with high-interest rate risk. Moreover, this fund does not diversify its holdings across asset classes and primarily invests in debt.
Are Bond Funds suitable for achieving long-term goals?
Bond Funds invest in securities with various maturity periods. Based on the investment strategy and plan, bond funds may be a suitable option for a medium to long-term investment. Bandhan Bond Fund Income Plan is a medium to long-term bond fund that invests in securities with a maturity period between 4-7 years and may potentially be suitable for achieving long-term goals.
What do Bond Funds in India invest in?
Bond Funds in India invest in government, corporate, municipal and convertible bonds. They may also invest in other debt and money market securities.
What are the disadvantages of Bond Income Funds?
Income Funds aim to potentially generate income for the investor and do not necessarily aid wealth creation. Moreover, bond funds may be a moderately risky investment and can be vulnerable to interest rate risk, liquidity risk and other market risks.
Is an Income Fund’s NAV history important to consider before investing?
Analysing the historical performance of a fund is important. However, historical performance does not guarantee future performance and investors must read all scheme-related documents carefully before investing.