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.
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What is a Bond Fund - Short Term Plan?
Seeking a relatively stable investment with moderate risk over a shorter time frame? The Bandhan Bond Fund - Short Term Plan invests in high-quality debt instruments with a relatively short maturity period, making it an effective way to manage interest rate fluctuations. Let’s explore this short-term plan and its potential benefits.
Bond mutual funds primarily invest in bonds issued by various entities such as governments, municipal bodies, or corporations. The Bandhan Bond Fund - Short Term Plan is a debt scheme that focuses on high-quality debt and money market instruments with a Macaulay duration of 1 to 3 years, offering moderate interest rate risk and relatively low credit risk.
Investing in short-term bond funds may involve moderate risk due to their focus on 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, and cash management bills.
• Corporate and/or government-issued debt instruments: Bonds, debentures, notes, and strips.
• Obligations from banks and financial institutions.
• Certificates of Deposit (CD), Commercial Papers, and other permitted money market instruments.
The Bandhan Bond Fund - Short Term Plan primarily invests in one asset class, which may increase its risk exposure due to lack of diversification. The fund’s returns may be affected by moderate interest rate risk and other factors such as default risk, spread risk, market risk, reinvestment risk, and liquidity risk.
- 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 31st October 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 | 8.42 | 5.64 | 6.01 | 6.98 | 7.31 | 10,844 | 11,795 | 13,395 | 19,649 | 54,020 |
| 7.94 | 5.88 | 6.18 | 7.13 | N.A. | 10,796 | 11,873 | 13,503 | 19,927 | N.A. | |
| 7.75 | 5.66 | 6.47 | 7.37 | N.A. | 10,777 | 11,801 | 13,687 | 20,373 | 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 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/46xQzi1
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?
The Bandhan Bond Fund - Short Term Plan may be suited for investors with a short-to-medium-term investment horizon, focusing on securities with a Macaulay duration of 1-3 years. It is ideal for those seeking moderate risk and relatively steady returns over a one to three-year period.
This short-term bond mutual fund invests in securities with moderate interest rate risk. It may not be suitable for investors with a very low-risk tolerance due to its focus on a single asset class, which may increase risk.
The Bandhan Bond Fund - Short Term Plan may appeal to investors looking for exposure to government and/or corporate bonds, 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.