Bandhan Bond Fund Short Term Plan - Direct Plan
An open ended short term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 1 year and 3 years. A scheme with moderate interest rate risk and relatively low credit risk.
What is a Bond Fund - Short Term Plan?
Bond mutual funds are an investment scheme that invests primarily in bonds. To raise money, these bonds may be issued by different issuing bodies - the government, municipal bodies, or corporations. Bandhan Bond Fund Short Term Plan is a debt scheme that invests in high-quality debt and money market instruments with a Macaulay duration of 1 to 3 years. These securities have a moderate interest rate risk and relatively low credit risk.
Investing in short term bond funds may be moderately risky as its corpus fundamentally comprises debt and money market securities with a Macaulay duration of 1 to 3 years. 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 Short Term Plan does not diversify its holdings across asset classes, which may potentially increase the level of risk. The lack of diversification may impact the short term bond fund’s returns. This fund invests in securities with a moderate interest rate risk and may be vulnerable to interest rate fluctuations. Short term bond funds may also be vulnerable to other types of risks such as default risk, spread risk, market risks, reinvestment risk, and liquidity risk.
Short-term bond funds in India are taxed based on their holding period. 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. Units held for over three years are subject to LTCG tax at 20%.
- Min Investment 1,000
- Min SIP Amount 100
- Exit LoadNil (w.e.f. 23rd May 2016)
Scheme is suitable as 'Core' debt allocation and is recommended for a minimum investment horizon of 2 years
Tier 1 Benchmark : NIFTY Short Duration Debt Index A-II (w.e.f. 1st April 2022)Alternate Benchmark : CRISIL 10 Year Gilt Index
Tier 2 Benchmark : NIFTY AAA Short Duration Bond Index
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Performance as on 28th June 2024
| Scheme Names | CAGR Returns (%) | Current value of Investment of 10,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 3 year | 5 year | 10 year | 14/12/2000 Since inception | 1 year | 3 year | 5 year | 10 year | 14/12/2000 Since inception | |
| Bandhan Bond Fund - Short Term - Regular Plan - Growth | 6.85 | 5.14 | 6.26 | 7.03 | 7.29 | 10,687 | 11,624 | 13,553 | 19,743 | 52,477 |
| 7.06 | 5.32 | 6.36 | 7.22 | N.A. | 10,708 | 11,684 | 13,614 | 20,082 | N.A. | |
| 6.89 | 5.25 | 6.79 | 7.46 | N.A. | 10,687 | 11,658 | 13,894 | 20,541 | N.A. | |
| 6.90 | 4.16 | 5.50 | 7.03 | N.A. | 10,692 | 11,302 | 13,076 | 19,734 | N.A. | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Suyash Choudhary (w.e.f 11/03/2011)
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 Short Term Plan
(Scheme Risk-o-meter)
NIFTY Short Duration Debt Index A-II (w.e.f. 1st April 2022)
(Tier 1 Benchmark Risk-o-meter)
NIFTY AAA Short Duration Bond Index
(Tier 2 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking* :
- To generate optimal returns over short to medium term.
- Investments in Debt & Money Market securities such that the Macaulay duration of the portfolio is between 1 year and 3 years.
Who Should Invest in Short Term Bond Funds in India?
Bandhan Bond Fund Short Term Plan may be suitable for investors with a short-to-medium-term investment horizon as it invests in securities with a Macaulay duration of 1-3 years.
Short-term bond funds may be suitable for investors seeking a moderate-risk return investment. Short term bond mutual funds aim to generate optimal returns over the course of one to three years.
This short-term bond mutual fund invests in securities with a moderate interest rate risk. Investors with a significantly low-risk tolerance may not be suitable for this scheme. Moreover, this bond fund invests the majority of its corpus in only one asset class. This lack of diversity may increase the risk.
Bandhan bond fund – Short Term Plan may be suitable for investors seeking investments in bonds issued by the government and/or corporates, debt, and money market securities.
FAQs on Short Duration Funds
What are short term bonds?
Bonds are fixed-income investments that are loans given by an investor to the issuing authority, such as government bodies or corporations. Short term bonds have a maturity period of one to three years.
What is a short-term bond fund?
Short duration bond funds invest in bonds with a maturity period of one to three years. They are a moderately risky investment and aim to potentially generate optimal returns.
What are the disadvantages of short duration funds?
Short duration bond funds may be vulnerable to interest rate risk, default risk, spread risk, re-investment risk, etc. Moreover, short-term bond funds are a low-risk-return investment option; investors seeking to create wealth may not be suitable for this scheme.
How to start investing in short duration funds in India?
Investors can invest in short- duration funds in India by visiting our website. Click on the “Invest Now” button and fill in the required information.
Are bond mutual fund short-term plans risky?
Bond fund short-term plans are a moderately risky investment. They invest in securities with a moderate interest rate risk. Other risks may include market risk, liquidity risk, concentration risk, reinvestment risk, and spread risk.