Bandhan CRISIL-IBX Financial Services 3-6 Months Debt Index Fund Filed Draft

Bandhan Mutual Fund has introduced the Bandhan CRISIL-IBX Financial Services 3-6 Months Debt Index Fund, an open-ended index fund that tracks the CRISIL-IBX Financial Services 3-6 Months Debt Index. 

The fund aims to deliver returns in line with the benchmark by investing in short-term financial instruments while keeping interest rates and credit risk relatively low.

Asset Allocation

The fund primarily invests 95%-100% of its assets in securities included in the benchmark index. These securities typically include commercial papers (CPs), certificates of deposit (CDs), and short-term corporate bonds. The remaining 0%-5% of the portfolio is allocated to money market instruments and cash equivalents.

Fund Details

• Category: Index Fund
• Scheme Type: Open-ended, Constant Maturity Index Fund
• Face Value: ₹10 per unit
• NFO Price: ₹10 per unit
• Benchmark: CRISIL-IBX Financial Services 3-6 Months Debt Index
• Exit Load: None
• Liquidity: Available on all business days for subscription and redemption

Risk and Investment Approach

The fund follows a passive investment strategy and does not actively manage securities beyond maintaining alignment with the benchmark. Since the portfolio consists of short-maturity instruments, interest rate sensitivity is lower compared to long-duration debt funds. Tracking error is expected, but the fund will attempt to keep it within the permitted limits, according to the filing.

Management and Operations

The fund is managed by Brijesh Shah and Harshal Joshi. NAVs will be published daily, and monthly portfolio disclosures will be available on the Bandhan Mutual Fund website. The fund is structured to have a low expense ratio, with no distributor commissions in direct plans.

Subscription and Redemption

Investors can purchase or redeem units at NAV-based prices on all business days. The fund is not listed on any stock exchange, but repurchase requests will be processed within three working days. If there is a delay beyond this period, interest at 15% per annum will be paid to investors.

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.