Bandhan Mutual Fund Files For Fixed Maturity Plan – Series 209

Bandhan Mutual Fund has launched its Fixed Maturity Plan (FMP) – Series 209, a close-ended debt scheme with a tenure of 93 days. Units are priced at ₹10 during the New Fund Offer (NFO) period. Notably, the scheme will be listed on the Bombay Stock Exchange (BSE), ensuring liquidity for investors seeking to exit before maturity.

Investment Objective and Risk Class

The scheme aims to generate short-term income through a portfolio of debt and money market instruments maturing within the scheme’s tenure. Classified under the relatively low interest rate and moderate credit risk categories (B-I), the FMP aligns with conservative investor profiles. The benchmark index is the Nifty Ultra Short Duration Debt Index A-I.

Plans and Options Available

Two plans are offered: Regular and Direct. Both include growth and income distribution options, with the latter enabling payouts. If no selection is made, the growth option is the default. Investors have to adhere to the minimum subscription amount of ₹5,000 during the NFO period.

Portfolio Allocation and Restrictions

The scheme invests exclusively in debt and money market instruments, with a maximum allocation of 40% to securitised debt. It avoids high-risk instruments like derivatives, structured obligations, and foreign securities. Asset allocation complies with SEBI regulations to balance yield with safety.

Transparency in NAV and Costs

Net Asset Values (NAV) will be disclosed daily on Bandhan Mutual Fund’s website, AMFI’s portal, and the registrar’s platform, CAMS. The total expense ratio is capped at 1% of daily net assets for regular plans, with lower ratios for direct plans. 

No Premature Redemptions

As a close-ended scheme, units cannot be redeemed or repurchased before maturity. However, the BSE listing allows secondary market transactions for liquidity. The Bandhan FMP – Series 209 aims to provide consistent fixed-income returns within its short tenure, making it a structured option for conservative investors prioritizing capital preservation and low-risk returns.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.