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?
Looking for an investment that balances relative stability and moderate risk? The Bandhan Bond Fund Medium Term Plan might be a good fit for you. Designed for investors seeking relatively steady returns over a medium-term horizon, this fund primarily invests in high-quality debt instruments. If you’re seeking a bond fund with manageable interest rate risk and lower credit risk, this could be an option to explore. Let’s take a closer look at how this medium-term bond fund works.
Bond mutual funds invest in bonds issued by the government, municipal bodies, or corporations to raise capital. 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, offering relatively high-interest rate risk and low credit risk.
Investing in this medium-term bond fund carries moderate risk as it primarily comprises debt and money market securities with a medium-term maturity. These may include:
• Government-issued securities like coupon-bearing bonds, zero-coupon bonds, treasury bills, and cash management bills.
• Corporate or government-issued debt instruments.
• Debt securities from public and private sector companies, including bonds, debentures, and notes.
• Obligations from banks and financial institutions.
• Certificates of Deposit (CD), Commercial Papers, and other permitted money market instruments.
Bandhan Bond Fund Medium Term Plan focuses on debt instruments like bonds and lacks diversification across asset classes, which can increase risk and impact returns. It may be vulnerable to interest rate fluctuations and other risks, such as reinvestment, spread, default, market, and liquidity risks.
- 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 31st October 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 | 8.48 | 4.85 | 5.51 | 6.73 | 7.12 | 10,851 | 11,531 | 13,081 | 19,196 | 43,327 |
| 8.62 | 5.42 | 6.78 | 7.60 | 7.37 | 10,865 | 11,718 | 13,890 | 20,817 | 45,577 | |
| 8.18 | 5.25 | 6.80 | 7.64 | 7.56 | 10,821 | 11,664 | 13,899 | 20,889 | 47,312 | |
| 10.67 | 5.60 | 5.44 | 6.91 | 5.89 | 11,070 | 11,777 | 13,037 | 19,512 | 33,933 | |
| ^ 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/46xQzi1
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 with low-risk tolerance may find this fund unsuitable due to its high interest rate risk and lack of diversification, as it invests primarily in a single asset class. This fund may be suitable for investors looking to invest in bonds issued by the government, corporates, or 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.