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Bandhan Regular Savings Fund - Direct Plan

An open ended hybrid scheme investing predominantly in debt instruments

HybridInception Date:25/02/2010
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What is a Regular Savings Mutual Fund?

Regular savings mutual funds are a type of hybrid fund that invests in debt, and equity securities. According to the regulation, regular savings mutual funds are required to invest 75% to 90% of their total assets in debt securities and between 10% to 25% in equities. Investors may benefit from the relatively lower risk of debt securities and the growth potential of equities. This fund allows investors to diversify their portfolios across asset classes.

Regular savings mutual funds adopt a conservative investment strategy by primarily investing in debt securities; they are also known as conservative mutual funds. While debt securities are subject to risks such as credit risk, inflation risk and interest rate risk, they are relatively less vulnerable to market fluctuations and volatility. Through this conservative investment strategy, regular savings mutual funds aim to potentially provide regular income to investors.

Conservative hybrid funds taxation depends upon the period the units are held for. Regular savings mutual funds held for less than three years are subject to STCG tax. The potential returns earned are added to the investor's income and taxed according to their income tax slab. Conservative hybrid funds taxation for LTCG is applicable on investments held for over three years. The potential returns earned are taxed at 20%, along with indexation benefits.

  • Min Investment 1,000
  • Min SIP Amount 100
  • Exit Load
    • If redeemed/switched out within 7 days from the
    date of allotment:
    - Up to 10% of investment: Nil, for remaining investment: 0.25% of applicable NAV.
    • If redeemed/switched out after 7 days from date of allotment: Nil.
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Annualised Returns(as on 31st May, 2024)9.11%1yr5.43%3yr6.20%5yr
NAV 30.0370 as on 21/06/20241 Day Change: -0.00(-0.02%)

Scheme is suitable for a minimum investment horizon of 3 years

Tier 1 Benchmark : CRISIL Hybrid 85+15 - Conservative 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 year25/02/2010 Since inception1 year3 year5 year10 year25/02/2010 Since inception
Bandhan Regular Savings Fund - Regular Plan - Growth9.115.436.207.397.8510,91311,71913,51620,42329,391
10.417.188.839.238.8011,04412,31415,27124,19233,304
6.594.085.756.986.3010,66111,27713,22919,65823,914
^ Tier 1 Benchmark   |   ^^ Alternate Benchmark   |   ^^^ Tier 2 Benchmark

This fund is managed by Mr. Harshal Joshi (w.e.f 28/07/2021)Mr. Sumit Agrawal (w.e.f 20/10/2016)Mr. Viraj Kulkarni (w.e.f 07/01/2022)

View fund performance of other funds managed by Mr. Harshal Joshi, Mr. Sumit Agrawal, Mr. Viraj Kulkarni

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 Regular Savings Fund

(Scheme Risk-o-meter)

Investors understand that their principal will be at Moderately High Risk.

CRISIL Hybrid 85+15 - Conservative Index

(Tier 1 Benchmark Risk-o-meter)

This product is suitable for investors who are seeking* :

  • To provide regular income and capital appreciation over medium to long term.
  • Investment predominantly in debt and money market instruments and balance exposure in equity and equity related securities.

Who Should Invest in Regular Savings Mutual Funds?

Regular savings mutual funds adopt a conservative investment strategy and are suitable for risk-averse investors. As these funds primarily invest in debt securities, they are relatively less vulnerable to market volatility and fluctuations. However, it is crucial for investors to remember that all mutual funds are subject to risks.

Conservative hybrid mutual funds invest across debt and equity securities. Risk-averse investors seeking diversification may benefit from conservative hybrid funds due to their mandated asset allocation.

Investors seeking potential income and capital appreciation in the medium to long term may benefit by investing in regular savings mutual funds.

Conservative mutual funds may not be suitable for investors seeking tax-saving instruments, as STCG tax or LTCG tax is applicable on returns earned from these funds.

FAQs on Regular Savings Mutual Fund

What is the meaning of conservative hybrid mutual funds?

Conservative hybrid funds are also known as regular savings mutual funds. They are a type of hybrid fund which invests 75% to 90% of their total assets in debt securities and 10% to 25% of the fund's total assets are allocated to equities.

What are the advantages of a conservative hybrid fund?

Conservative hybrid funds allow a potential balance between risk and growth. Risk-averse investors may potentially benefit from exposure to equities while enjoying a relatively moderate level of risk. Conservative hybrid funds also allow investors to diversify their assets across debt and equity. Investors may benefit from the relatively lower risk of debt securities and the growth potential of equities.

Are regular savings mutual funds safe?

Regular savings mutual funds adopt a conservative investment strategy and are classified as a moderately risky investment option. These funds invest in debt securities and equities and may allow investors to potentially mitigate risk due to this diversification. However, all mutual funds are subject to risks.

What are the disadvantages of regular savings mutual funds?

Although regular savings mutual funds are a type of hybrid fund that invests predominantly in debt, they are subject to taxes similar to debt funds. STCG tax is levied on units held for less than three years. The profits are added to the investor's income and taxed according to the income tax slab. Units held over three years are subject to LTCG tax at 20%. Although these funds are moderately risky, their returns may be relatively lower due to the asset allocation.

Who should invest in conservative hybrid funds?

Risk-averse seeking investments predominantly in debt and money market instruments with a balanced exposure to equities may be suited to conservative funds. Conservative investors seeking diversification of their assets may also benefit from investing in conservative hybrid funds. Investors seeking regular income and capital appreciation in the medium to long term can consider conservative hybrid funds.

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