Publish Date:
Bandhan Mutual Fund introduces – Bandhan Retirement Fund
It is an open-ended retirement solution oriented scheme having a lock-in of 5 years or till retirement age (whichever is earlier).
Accordingly, the investment objective of the Scheme is to provide long-term capital appreciation / income by investing in a mix of equity, debt and other instruments to help investors meet their retirement goals. However, there can be no assurance that the investment objective of the scheme will be realized.
Under normal circumstances, Bandhan Retirement Fund will hold an allocation of 50% to 100% of its assets in Equity and Equity related Instruments, 0% to 50% in Debt Securities and Money Market Instruments (including Government securities, Securitised debt) and 0% to 10% in Units issued by REITs & InvITs.
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As per the Scheme Information Document, Bandhan Retirement Fund aims to manage the exposure between two asset classes equity and debt dynamically.
The investment strategy will focus on minimizing the risk and optimize the return proposition for a long-term investor. This is critical for those who are investing in the scheme specifically to build their retirement corpus. The dynamic allocation between equity and debt asset class will be based on an underlying quantitative model.
The underlying model will be based on various fundamental, technical and macro parameters that will govern how the fund managers deploy their assets between debt and equity. The equity portion of the scheme will be actively managed with the aim to build a diversified portfolio across market caps and sectors. The debt portion of the scheme will also be actively managed with investments across debt and money market securities (including government securities) of varying maturities depending on the fund manager’s views.
Bandhan Retirement Fund performance will be benchmarked against CRISIL Hybrid 50+50 - Moderate Index.
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The scheme will be managed by Mr Viraj Kulkarni (equity portion), Mr Gautam Kaul (debt portion) and Ms Nishita Shah will be managing overseas investment portion.
The NFO opens for subscription on September 28, 2023 and closes on October 12, 2023. The schemes will reopen for continuous sale and repurchase within 5 business days from date of allotment.
The fund's face value is Rs 10/- per unit. The minimum subscription amount is Rs 1,000/- and in multiples of Re.1/- thereof.
The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal (IDCW) options.