Bandhan Mutual Fund Files Draft For CRISIL- IBX 10:90 Gilt + SDL Index – Dec 2029 Fund

Bandhan Mutual Fund has announced the Bandhan CRISIL-IBX 10:90 Gilt + SDL Index – Dec 2029 Fund, it is an open-ended target maturity index fund launched as a New Fund Offer (NFO). 

The fund primarily invests in government securities and state development loans (SDLs), tracking the CRISIL-IBX 10:90 Gilt + SDL Index – Dec 2029. The fund provides investors with a low-risk investment opportunity, maturing on December 31, 2029.

Asset Allocation

The Bandhan CRISIL-IBX 10:90 Gilt + SDL Index – Dec 2029 Fund primarily invests 90% of its portfolio in State Development Loans (SDLs), which are issued by state governments and typically offer a slight yield premium over central government securities. 

Additionally, 10% of the fund is allocated to Government Securities (G-Secs), seeking stability and lower credit risk. To maintain liquidity and meet redemption requirements, the fund may hold up to 5% in cash and money market instruments, providing flexibility in managing short-term cash flows.

New Fund Offer (NFO) Details

• NFO Price: ₹10 per unit
• Minimum Investment: ₹1,000 (lump sum), ₹100 for SIP (minimum six installments)
• Exit Load: None
• Investment Objective: The fund aims to generate returns that align with the CRISIL-IBX 10:90 Gilt + SDL Index – Dec 2029, subject to tracking errors. 

It does not guarantee or assure returns.

Benchmark and Liquidity

The fund is benchmarked to CRISIL-IBX 10:90 Gilt + SDL Index – Dec 2029. Units can be bought or redeemed on any business day at NAV-based prices. If redemption proceeds are delayed beyond three working days, interest at 15% per annum is payable to investors.

Capital gains on units held for more than three years are taxed at 20% with indexation benefits.

Expense Ratio

The fund’s total expense ratio (TER) is capped at 1%, with an additional 0.30% for new inflows from smaller cities.

This is a fixed-maturity debt fund with no past performance record, as it is a new offering.

Risks

• Interest rate fluctuations can affect fund returns.
• There is a possibility of tracking errors as actual investments may deviate from the index.
• SDLs and G-Secs have low credit risk but may face liquidity challenges in certain market conditions.

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 are subject to market risks, read all scheme-related documents carefully.