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.
What is a Government Securities Fund - Constant Maturity Plan?
If relative safety and long-term stability are your priorities, the Bandhan Government Securities Fund – Constant Maturity Plan may be the right fit. This fund invests in government-backed bonds, offering a secure option to potentially grow your investments over time. Here’s how it aims to provide stability through government securities.
Gilt funds or government securities funds are a type of debt scheme that invests in government securities with a constant maturity of 10 years. These include:
• Government Bonds: Debt instruments issued by the Government of India through RBI auctions, with varying maturity periods.
• State Development Loans (SDL): Bonds issued by state governments to fund fiscal deficits..
• Treasury Bills: Short-term instruments issued by the Government of India to meet immediate financial needs.
• Cash Management Bills: Flexible short-term instruments issued by the central bank and government to address temporary cash imbalances.
These government securities carry high-interest rate risk and relatively low credit risk.
Bandhan Government Securities Fund - Constant Maturity Plan is a long-term, moderately risky investment. As it invests in securities with relatively high-interest rate risk, its potential returns may be impacted by rising interest rates.
This fund may face reinvestment risk if prevailing interest rates differ from the original bond’s coupon rate, leading to proceeds being reinvested at lower rates. It may also be exposed to risks like short-selling, securities lending, and spread risk.
- Min Investment 1,000
- Min SIP Amount 100
- Exit LoadNil
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
- Portfolio
- Download
- Details
Performance as on 29th November 2024
| Scheme Names | CAGR Returns (%) | Current value of Investment of 10,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 3 year | 5 year | 10 year | 09/03/2002 Since inception | 1 year | 3 year | 5 year | 10 year | 09/03/2002 Since inception | |
| Bandhan G Sec Fund - Constant Maturity Plan - Regular Plan - Growth | 10.53 | 5.57 | 6.47 | 8.40 | 6.65 | 11,056 | 11,768 | 13,683 | 22,421 | 43,259 |
| 10.18 | 5.58 | 5.48 | 6.79 | 6.52 | 11,021 | 11,769 | 13,059 | 19,309 | 42,074 | |
| 7.57 | 6.08 | 5.52 | 6.38 | 5.98 | 10,759 | 11,938 | 13,089 | 18,572 | 37,489 | |
| ^ 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/46xQzi1
Bandhan Government Securities Fund Constant Maturity Plan
(Scheme Risk-o-meter)
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 fund’s portfolio has an average maturity of 10 years, making it suitable for investors seeking long-term debt investments.
This fund invests in government securities like Treasury Bills, bonds, SDLs, and Cash Management Bills. Investors looking to diversify their portfolio through a range of government securities may benefit from gilt funds.
Bandhan Government Securities Fund - Constant Maturity Plan may not suit investors seeking tax-saving options, as 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.