Publish Date:
Bandhan Mutual Fund (erstwhile IDFC Mutual Fund) has launched – Bandhan US Treasury Bond 0-1 Year Fund of Fund. This is India’s first passive debt fund in international space.
It is 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.
Accordingly, the investment objective of the Scheme is to provide long-term capital appreciation by passively investing in units / shares of overseas Index Funds and / or ETFs which track an index with US treasury securities in the 0 – 1 year maturity range as its constituents, subject to tracking error. However, there can be no assurance that the investment objective of the Scheme will be realized.
Under normal circumstances, Bandhan US Treasury Bond 0-1 Year Fund of Fund will hold an allocation of 95% to 100% of its assets in Units / shares of Overseas Index Funds and / or ETFs which invest in securities of an index with US treasury securities in the 0-1 year maturity range as its constituents. And 0% to 5% in Debt Securities, Money Market Instruments, and/or units of Debt and Liquid schemes.
As per the Scheme Information Document, Bandhan US Treasury Bond 0-1 Year Fund of Fund seeks to generate long term capital appreciation by 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, except to meet its liquidity requirements for which the scheme would also invest in units of Liquid/ debt schemes, debt and money market instruments.
Bandhan US Treasury Bond 0-1 Year Fund of Fund’s performance will be benchmarked against ICE 0-1 Year US Treasury Securities Index.
The scheme will be managed by Mr Sreejith Balasubramanian (Overseas portion) and Mr Brijesh Shah (Debt portion).
The NFO opens for subscription on March 10, 2023, and closes on March 23, 2023. The schemes will reopen for continuous sale and repurchase within five business days from the date of allotment of units.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 1,000/- and in multiples of any amount thereafter.
The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.