NFO Alert: Bandhan Mutual Fund Launches CRISIL IBX 10:90 Gilt Plus SDL Index – Dec 2029 Fund

The Bandhan CRISIL IBX 10:90 Gilt Plus SDL Index – Dec 2029 Fund is an open-ended target maturity index fund that primarily invests in government securities (G-Secs) and state development loans (SDLs). 

It aims to mirror the performance of the CRISIL IBX 10:90 Gilt + SDL Index – Dec 2029, with a passive investment approach to minimize active fund management.

NFO Details

The New Fund Offer (NFO) details are as follows:

• Opens: February 25, 2025
• Closes: March 5, 2025
• Allotment Date: March 5, 2025
• Maturity Date: December 31, 2029
• Face Value: ₹10 per unit
• Fund Manager: Brijesh Shah
• Risk Level: Moderate
• Plans: Growth and IDCW
• Benchmark: CRISIL-IBX 10:90 Gilt + SDL – Dec 2029 

Investment Requirements

• Minimum Investment: Minimum ₹1,000, in multiples of ₹1 thereafter
• Additional Purchases: ₹1,000 minimum
• SIP: Starts at ₹100 per installment (minimum 6 installments)
• SWP (Systematic Withdrawal Plan): ₹200 per withdrawal
• STP (Systematic Transfer Plan): ₹500 per transfer

Objective & Asset Allocation

The scheme focuses on investing in SDLs and G-Secs in a predefined ratio, maintaining its composition in line with the benchmark. Since it follows a passive approach, there is minimal fund manager intervention. Asset allocation is as follows:

• State Development Loans (SDLs): 90%
• Government Securities (G-Secs): 10%
• Cash & Money Market Instruments: 0% – 5%

The portfolio will maintain duration alignment with the index and hold securities until maturity.

Liquidity & Redemption

• Units can be bought or sold on any business day at NAV-based prices.
• Redemption proceeds will be paid within three working days from the date of the request.
• In case of delay, an interest compensation of 15% per annum will be applicable from the fourth day.

Taxation & Risk

• Tax Treatment: Classified as a debt mutual fund, meaning capital gains are taxed based on the investor’s income slab.
• Risk Level: Moderate, as per the risk-o-meter.

Since this is a target maturity fund, all units will automatically mature on December 31, 2029, and be redeemed at the prevailing NAV. The NAV will be published daily on the AMFI and Bandhan Mutual Fund websites after 11:00 PM on business days.

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.