Bandhan US Treasury Bond 0-1 year FOF - Direct Plan
An open ended fund of fund scheme investing in units / shares of overseas Index Funds and / or Exchange Traded Funds which track an index with US treasury securities in the 0-1 year maturity range as its constituents)
What is a US Treasury Bond 0–1-year Fund of Fund?
If you're seeking international exposure for your portfolio, the Bandhan US Treasury Bond 0-1-Year Fund of Fund allows you to invest in global debt markets, helping you build a USD asset base.
This fund invests in US Treasury Bonds with maturities between 0-1 year, offering lower risk due to the short duration and the relative stability of US government-backed securities. It provides exposure to US Treasury markets while helping investors manage currency risk.
The Bandhan US Treasury Bond 0-1-Year Fund of Fund is ideal for investors looking to diversify into international assets with relatively low risk. It is a strategic option for those planning future USD expenses, such as education, travel, or other financial goals.
A Fund of Fund (FoF) invests in other funds, offering exposure to various asset classes and geographical areas.
The Bandhan US Treasury Bond 0-1-Year Fund of Fund must invest at least 95% of its assets in overseas index funds or ETFs that track US Treasury securities with maturities of 0-1 year. Up to 5% can be allocated to debt or money market securities.
While Treasury bonds are generally low-risk due to their government backing, the Bandhan US Treasury Bond 0-1-Year Fund of Fund carries other risks since it invests in international securities. Investing in overseas assets exposes the fund to risks such as currency fluctuations, global political changes, and regulatory shifts. Currency risk, in particular, may impact the yield of US Treasury bonds, and the lack of asset diversification can elevate risk. As a result, the Bandhan US Treasury Bond Fund of Fund is classified as a high-risk investment.
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load0.10%
- 0.10% of applicable NAV - if the units are redeemed/switched out within 7 days from the date of allotment
- Nil – if the units are redeemed / switched-out after 7 days from the date of allotment
Tier 1 Benchmark : ICE 0-1 Year US Treasury Securities IndexAlternate Benchmark : NA
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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 | 28/03/2023 Since inception | 1 year | 3 year | 5 year | 10 year | 28/03/2023 Since inception | |
| Bandhan US Treasury Bond 0-1 Year Fund of Fund - Regular Plan - Growth | 6.17 | N.A. | N.A. | N.A. | 6.29 | 10,619 | N.A. | N.A. | N.A. | 11,023 |
| 6.45 | N.A. | N.A. | N.A. | 6.75 | 10,647 | N.A. | N.A. | N.A. | 11,099 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Brijesh Shah (w.e.f 28/03/2023)
View fund performance of other funds managed by Mr. Brijesh Shah
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 US Treasury Bond 0-1 year Fund of Fund
(Scheme Risk-o-meter)
ICE 0-1 Year US Treasury Securities Index
(Tier 1 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking* :
- To create wealth over long term.
- Generate returns through investing in US treasury securities in the 0-1 year maturity range
Who Should Invest in Bandhan US Treasury Bond FOF?
Since this fund invests in foreign securities, it is exposed to currency and foreign exchange risks. It may be suitable for investors with a higher risk tolerance.
With 95% of its assets in US Treasury securities, this fund lacks diversification, making it unsuitable for investors looking for a broadly diversified scheme. However, investors looking to diversify their overall portfolio may benefit from adding US Treasury bonds. It's important to assess the fund's asset allocation before investing.
Investors with a long-term horizon may benefit from this fund, which seeks to generate potential returns through investments in US Treasury securities over time.