Bandhan Government Securities Fund - Investment Plan - Direct Plan
An open ended debt scheme investing in government securities across maturities. A scheme with relatively high interest rate risk and relatively low credit risk.
What is a Government Securities Fund?
Government securities are trusted investments backed by the government, offering relative safety and peace of mind. The Bandhan Government Securities Fund Investment Plan leverages these securities, providing a relatively low-risk option with the potential for steady returns. Let's explore the details of this fund.
A government securities fund, or gilt fund, is a type of debt investment that primarily invests in government securities with varying maturity periods. These securities carry relatively high-interest rate risk but low credit risk. The fund is required to invest in instruments such as Treasury bills and Cash Management bills.
● Treasury Bills: Short-term government securities with maturities ranging from 91 to 364 days, issued by the Government of India.
● Cash Management Bills: Introduced in 2010 by the Government of India, these securities are issued for maturities of less than 91 days.
The Bandhan Government Securities Fund is considered moderately risky due to its allocation in long-term government securities. . As a long-term debt investment, government bond funds are subject to risks such as price risk or interest rate risk. A rise in interest rates can negatively impact bond prices, affecting potential returns. Additionally, government bonds may carry some credit risk.
Government bond funds are a debt instrument and are taxed accordingly. For holdings of less than 3 years, Short-Term Capital Gains (STCG) are taxed according to the investor’s income tax slab. For holdings longer than 3 years, Long-Term Capital Gains (LTCG) are taxed at 10%.
- 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 Dynamic Gilt IndexAlternate Benchmark : CRISIL 10 Year Gilt Index
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Performance as on 30th August 2024
| Scheme Names | CAGR Returns (%) | Current value of Investment of 10,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 3 year | 5 year | 10 year | 03/12/2008 Since inception | 1 year | 3 year | 5 year | 10 year | 03/12/2008 Since inception | |
| Bandhan Government Securities Fund - Investment Plan - Regular Plan - Growth | 10.78 | 5.88 | 6.83 | 8.52 | 7.99 | 11,082 | 11,872 | 13,918 | 22,669 | 33,549 |
| 9.39 | 6.07 | 6.63 | 8.05 | 7.30 | 10,941 | 11,935 | 13,788 | 21,708 | 30,324 | |
| 8.85 | 5.12 | 5.28 | 7.11 | 5.93 | 10,887 | 11,617 | 12,939 | 19,899 | 24,771 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Suyash Choudhary (w.e.f 15/10/2010)
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 Government Securities Fund Investment Plan
(Scheme Risk-o-meter)
CRISIL Dynamic Gilt Index
(Tier 1 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking* :
- To generate long term optimal returns
- Investments in Government Securities across maturities
Who Should Invest in Government Bond Mutual Funds?
As Bandhan Government Securities Fund - Investment Plan invests in government securities with relatively high-interest rate risk, this fund is labelled as a moderately risky investment option. This is a long-term gilt fund and is suitable for investors seeking a moderately risky, long-term investment option.
Investing in gilt funds may not be suitable for investors seeking tax-saving options. As a debt fund, gilt mutual funds are subject to STCG and LTCG tax based on the holding period. STCG is applicable on units held for less than 3 years. The amount is added to the investor's income and taxed according to their income tax slab. LTCG is taxed at 10%.
Investors seeking to diversify their financial portfolio by investing across government securities with different maturities may find this fund suitable.
FAQs on Government Securities Fund
What is a Gilt Fund?
Gilt Mutual Funds are a debt investment scheme that invests in government securities such as Treasury Bills and Cash Management Bills (CMB). These securities may have varying maturity periods.
What are the types of Government Securities?
Government Securities include Treasury Bills, Cash Management Bills (CMB), dated government securities, zero coupon bonds, floating rate bonds etc. These securities may have different maturity periods ranging from 91 days to 40 years.
Are Govt Securities Funds risky?
Government Securities Funds may be classified as a moderately risky investment option. These funds invest in government securities with relatively high-interest rate risk. They may also be subject to market risks, interest rate risk, re-investment risk etc.
Is Bandhan Government Securities Fund a short-term investment?
No, Bandhan Government Securities Fund is a long-term investment option. This fund invests in government securities of varying maturity periods and aims to generate long-term optimal returns.
Are Gilt Funds returns significant?
Gilt Fund returns may vary based on market conditions, asset allocation and the type of securities the fund invests in. Investors can check the historical performance of the fund to determine the gilt fund returns. However, historical performance does not guarantee future gains and investors must consult a financial advisor for more detailed information.