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Bandhan Government Securities Fund - Constant Maturity Plan - Direct Plan

An open ended debt scheme investing in government securities having a constant maturity of 10 years. A scheme with relatively high interest rate risk and relatively low credit risk.

DebtInception Date:09/03/2002
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What is a Government Securities Fund - Constant Maturity Plan?

Gilt funds or government securities funds are a type of debt scheme. This fund invests in government securities having a constant maturity of 10 years. These securities may include:

Government Bonds: These are debt instruments issued by the Government of India through auctions conducted by the Reserve Bank of India (RBI). Their maturity period may be varied.

State Development Loans (SDL): This is a bond issued by the state government to fund a fiscal deficit.

Treasury Bills: This is a money market instrument issued by the Government of India. It is issued to meet the short-term financial needs of the Government.

Cash Management Bills: This is a short-term money market instrument issued by the central bank in collaboration with the government. It is a highly flexible money market instrument that can be issued to address temporary cash imbalances.

These government securities have a relatively high-interest rate risk and relatively low credit risk.

Bandhan Government Securities Fund - Constant Maturity Plan is a long-term and moderately risky investment option. As this scheme invests in securities with a relatively high-interest rate risk, this fund is vulnerable to interest rate risk. An increase in interest rates may potentially impact this gilt fund’s potential returns.

Bandhan Government Securities Fund may be vulnerable to reinvestment risk as interest rates prevailing on the interest may potentially differ from the original coupon of the bond. As a result, proceeds may get reinvested at a lower rate. The fund may also be vulnerable to short-selling of securities, securities lending, spread risk, etc.

Government bond funds are a debt instrument and are taxed accordingly. Investments held for up to 3 years are taxed under Short Term Capital Gains (STCG) at 20%. Long Term Capital Gains tax is levied on investments held over 3 years at 10%.

  • Min Investment 1,000
  • Min SIP Amount 100
  • Exit Load
    Nil
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Annualised Returns(as on 31st May, 2024)6.66%1yr4.67%3yr6.92%5yr
NAV 41.5395 as on 21/06/20241 Day Change: 0.04(0.10%)

Scheme is suitable as 'Satellite' debt allocation and is recommended for a minimum investment horizon of more than 3 years

Tier 1 Benchmark : CRISIL 10 Year Gilt IndexAlternate Benchmark : CRISIL 10 Year Gilt Index

Performance as on 31st May 2024

Scheme NamesCAGR Returns (%)Current value of Investment of 10,000
1 year3 year5 year10 year09/03/2002 Since inception1 year3 year5 year10 year09/03/2002 Since inception
Bandhan G Sec Fund - Constant Maturity Plan - Regular Plan - Growth6.664.676.928.506.5810,66811,47013,97922,63441,243
6.594.085.756.986.4510,66111,27713,22919,65840,181
7.085.355.536.425.9410,71011,69613,08918,63636,120
^ Tier 1 Benchmark   |   ^^ Alternate Benchmark   |   ^^^ Tier 2 Benchmark

This fund is managed by Mr. Harshal Joshi (w.e.f 15/05/2017)

View fund performance of other funds managed by Mr. Harshal Joshi

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 Government Securities Fund Constant Maturity Plan

(Scheme Risk-o-meter)

Investors understand that their principal will be at Moderate Risk.

CRISIL 10 Year Gilt Index

(Tier 1 Benchmark Risk-o-meter)

This product is suitable for investors who are seeking* :

  • To generate optimal returns over long term.
  • Investments in Government Securities such that the average maturity of the portfolio is around 10 years.

 

Who Should Invest in a Government Securities Fund - Constant Maturity Plan?

Bandhan Government Securities Fund - Constant Maturity Plan invests in securities with high-interest rate risk. Thus, this fund is categorised as a moderately risky investment option. This gilt mutual fund may be suitable for investors seeking a moderately risky investment option.

This government bond mutual fund invests in securities with an average maturity portfolio of 10 years. Investors seeking a long-term debt investment may be suitable for this scheme.

This fund invests in government securities such as Treasury Bills, government bonds, State Development Loans (SDL), Cash Management Bills, etc. Investors seeking to diversify their investment portfolio by investing in a diverse portfolio of government securities may potentially benefit from investing in gilt funds.

As a debt scheme, Bandhan Government Securities Fund - Constant Maturity Plan may not be suitable for investors seeking to save tax. As a debt scheme, gains are taxed based on the holding period.

FAQs on Government Securities Fund - Constant Maturity Plan

What is a gilt fund - constant maturity plan?

A gilt fund is also known as a government securities fund. It invests in government securities such as government bonds, treasury bills, cash management bills, state development loans, etc. The average maturity of these securities is around 10 years.

Is Bandhan Government Securities Fund - Constant Maturity Plan risky?

Bandhan Government Securities Fund is classified as a moderately risky investment. This fund invests in securities with a relatively high-interest rate risk. Moreover, it may be subject to certain risks such as reinvestment risk, short-selling of securities, securities lending, and spread risk.

What securities does Bandhan Government Securities Fund - Constant Maturity Plan invest in?

Bandhan Government Securities Fund invests in government securities such as government bonds, State Development Loans (SDL), Cash Management Bills, Treasury Bills, etc. These securities have a constant maturity period of 10 years.

Are government bond mutual funds suitable for wealth creation?

Government bond mutual funds are a debt scheme that aims to create optimal returns over a certain period. These funds may not be suitable for wealth creation.

Is investing in a government securities fund - constant maturity plan suitable for the long-term?

Yes, government securities funds may be a suitable long-term investment as they invest in securities with a constant maturity period of 10 years.

Is govt securities fund a good investment?

Whether a govt securities fund is a good investment is dependent on an investor's investment horizon and risk appetite. Investors with a long-term investment horizon and moderate risk appetite may potentially benefit by investing in government bonds. However, gilt mutual funds aim to generate optimal returns and may not be suitable for investors seeking wealth creation.

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.