Publish Date:
Bandhan Mutual Fund launches – Bandhan Long Duration Fund
It is 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.
Accordingly, investment objective of the Scheme is to invest in a diversified set of debt and money market securities, such that the Macaulay duration of the Portfolio is greater than 7 years, with the aim of generating optimal returns over long term. However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved.
Under normal circumstances, Bandhan Long Duration Fund will hold an allocation of 0% to 100% in Debt Securities (including G-Sec and securitized debt) and Money Market Instruments such that the Macaulay duration of the portfolio is greater than 7 years.
[Read: Exploring Alternatives to Bank FDs: A Deep Dive into Debt Funds]
As per the Scheme Information Document, Bandhan Long Duration Fund will invest in a diversified set of debt and money market securities with the aim of generating optimal returns over long term. The portfolio created will be such that the Macaulay duration of the portfolio is greater than 7 years. The duration would be managed dynamically using debt and money market instruments, depending on the fund manager’s view.
The aim of the Investment Manager will be to allocate the assets of the Scheme amongst various fixed income instruments (debt / money market) across maturities and ratings with the objective of optimizing returns, while retaining the Macaulay duration of the portfolio greater than 7 years.
Bandhan Long Duration Fund’s performance will be benchmarked against NIFTY Long Duration Debt Index-A-III
The scheme will be managed by Mr Gautam Kaul and Mr Sreejith Balasubramanian (overseas investments)
The NFO opens for subscription on March 05, 2024 and closes on March 18, 2024. The schemes will reopen for continuous sale and repurchase within 5 days from the date of allotment.
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 option and Income Distribution cum capital withdrawal Option (IDCW).