NFO Alert: Bandhan Mutual Fund Launches Fixed Maturity Plan – Series 209

Bandhan Mutual Fund has launched the Bandhan Fixed Maturity Plan (FMP) – Series 209, a close-ended debt scheme with a 93-day tenure. The New Fund Offer (NFO) opens on February 3, 2025, and closes on February 10, 2025. Once the NFO period ends, fresh investments won’t be allowed, but the scheme is proposed to be listed on BSE Limited (BSE) for trading.

Investment Objective

The scheme aims to generate income by investing in a portfolio of debt and money market instruments that mature on or before the completion of 93 days. It follows a fixed tenure structure, meaning the fund manager will select instruments aligned with this timeline to manage interest rate and reinvestment risks.

Features

• Minimum Investment: ₹5,000 and multiples of ₹1 thereafter
• Exit Load: Nil
• Entry Load: Not applicable
• Benchmark: Nifty Ultra Short Duration Debt Index A-I
• Plans Available: Growth and IDCW (Income Distribution cum Capital Withdrawal)
• Risk Level: Low to Moderate

Fund Management

The scheme is managed by Harshal Joshi, a fund manager with Bandhan Asset Management Company Limited. His role includes selecting debt and money market instruments that fit within the defined risk and maturity parameters of the scheme.

Listing and Liquidity

Being a close-ended fund, units will not be redeemable before maturity. However, investors can trade units on BSE Limited once listed, allowing some flexibility to exit the investment before the tenure ends.

All in all, Bandhan FMP – Series 209 is for short-term investments with a predefined maturity period. It follows a structured approach to investing in debt instruments while maintaining a low to moderate risk profile. 

Investors looking for short-duration debt exposure can consider this fund, keeping in mind the fixed lock-in period and all the risks associated.

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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.