Bandhan Long Duration Fund - Direct Plan
Bandhan Long Duration Fund - Direct Plan
An open ended long term debt scheme investing in instruments such that the Macaulay duration of the portfolio is greater than 7 years with Relatively High Interest Rate Risk and Relatively Low Credit Risk.
What is a Long Duration Fund?
A long duration fund is a type of debt scheme that invests in debt and money market securities with a Macaulay duration of over 7 years. Debt securities may include G-Sec and securitized debt; money market securities may include commercial papers, commercial bills, treasury bills, etc. These securities have relatively high-interest rate risk and low credit risk.
This long duration debt fund is mandated to invest a majority of its corpus in debt and money market securities. The fund’s holdings are not diversified across asset classes, which may increase the risk and potential returns. As the fund invests in securities with relatively high-interest rate risk, it may be vulnerable to interest rate fluctuations.
Long duration mutual funds may be subject to re-investment risk as the investment is held for a long time and the interest rate on the maturity date may differ from the original coupon of the bond. Moreover, long duration debt funds may be subject to basis risk, spread risk and liquidity risk.
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load
Nil
This scheme has not completed one year.
Scheme is suitable for a minimum investment horizon of more than 3 years
Tier 1 Benchmark : NIFTY Long Duration Debt Index A-IIIAlternate Benchmark :
- Performance
- Portfolio
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- Details
This fund is managed by Mr. Gautam Kaul (w.e.f 20/03/2024)
View fund performance of other funds managed by Mr. Gautam Kaul
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 Long Duration Fund
(Scheme Risk-o-meter)
NIFTY Long Duration Debt Index A-III
(Tier 1 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking*:
▪ To generate wealth over long term.
▪ Investment across Debt & Money Market Securities such that the macaulay duration of the portfolio is greater than 7 years
Who Should Invest in Long Duration Debt Funds?
Long Duration Funds invest in debt and money market securities with a Macaulay duration of over 7 years. This scheme may be suitable for investors with a long-term investment horizon.
Bandhan Long Duration Fund invests in debt and money market securities with high-interest rate risk and is a moderately risky investment option. This scheme may be vulnerable to interest rate risk, spread risk, re-investment risk, etc. Consequently, long duration debt funds may be suitable for investors with a moderate risk appetite.
Bandhan Long Duration Fund may not be suitable for investors looking to diversify their investments. This scheme invests a majority of its corpus in debt and money market securities.
This debt fund for the long-term may be suitable for investors seeking wealth creation in the long run. It may not be suitable for investors with short-term goals.
FAQs on Long Duration Funds
What is the meaning of Long Duration Funds?
A Long Duration Fund is a debt scheme that invests in debt and money market securities with a Macaulay duration of over 7 years. These securities have a high interest rate risk and low credit risk.
Are debt funds for the long term a risky investment?
Long Duration debt funds are categorised as moderately risky investments. They may be vulnerable to interest rate risk, re-investment risk, liquidity risk, spread risk, basis risk etc.
Are the returns of a Long Duration Mutual Funds high?
The returns of a long duration fund depend on several factors including, the performance of the benchmark index, interest rates, market factors etc. While long duration debt funds aim to aid long-term wealth creation, returns are not guaranteed.
What is the asset allocation of Long Duration Funds?
Long duration debt funds are mandated to allocate the majority of their assets to debt and money market securities with a high-interest rate risk and low credit risk. These securities must have a Macaulay duration of over 7 years and may include G-Sec securities, securitized debt, commercial papers, commercial bills, treasury bills, etc.
How long should you stay invested in Long Duration Funds?
Long Duration debt funds invest in securities with a Macaulay duration of over 7 years. It is recommended to stay invested in these funds for at least 7 years. Investors should consult a financial advisor for personalized financial advice.
What are the benefits of Long Duration Funds?
Long Duration debt funds may aid long-term wealth creation for investors with an investment horizon of over 7 years. Moreover, these funds invest in fixed-income securities and may be suitable for investors with a moderate risk tolerance.