Bandhan Mutual Fund Files Draft For Fixed Maturity Plan – Series 213 (370 Days)

Bandhan Mutual Fund has announced Bandhan Fixed Maturity Plan – Series 213, which is a close-ended debt scheme with a fixed tenure of 370 days. The fund follows a structured approach by investing in a mix of debt and money market instruments that mature within the scheme’s tenure. 

Once the New Fund Offer (NFO) period closes, investors cannot make additional purchases or redemptions until maturity.

Investment Objective and Strategy

The primary objective of the scheme is to generate income by investing in fixed-income securities that mature before or alongside the scheme’s tenure. The fund aims to minimise interest rate risk by holding securities till maturity. However, returns are not guaranteed and depend on market conditions.

Asset Allocation

• Debt Securities: 70-100%
• Money Market Instruments: 0-30%
• Securitised Debt: Up to 40% of total debt assets

The scheme does not invest in derivatives, foreign securities, or structured obligations with credit enhancements.

Risk and Benchmark

The scheme falls under the B-I risk category, which means it carries relatively low interest rate risk and moderate credit risk. Its performance is benchmarked against the Nifty Short Duration Debt Index A-II, which represents short-term debt securities with similar risk characteristics.

Liquidity and Listing

Being a close-ended scheme, investors can only enter during the NFO period. Afterwards, units will be listed on BSE, allowing investors to trade on the exchange. There are no premature redemptions through the fund house.

Taxation and Fund Management

Taxation follows debt fund rules, meaning capital gains tax with indexation benefits applies if held for more than three years. The scheme is managed by Gautam Kaul, who has experience in debt markets and has previously managed various fixed-income funds.

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.