Updates to Bandhan All Seasons Bond Fund: Key Changes Explained

Bandhan Mutual Fund has announced some important modifications to its Bandhan All Seasons Bond Fund, altering its fundamental attributes. These changes, approved by the fund house, aim to redefine the fund’s structure, investment approach, and associated risk levels. Below is an overview of the updates.

Revised Scheme Name & Investment Objective

The fund’s name will be updated from Bandhan All Seasons Bond Fund to Bandhan Income Plus Arbitrage Fund of Funds. This rebranding shows a shift in the scheme’s investment strategy. Previously, the fund sought to generate optimal returns through investments in debt funds managed by Bandhan AMC. The revised investment objective focuses on achieving long-term capital appreciation by allocating funds to a mix of debt and arbitrage funds under the Bandhan umbrella.

Change in Benchmark Index

The scheme’s benchmark has also been updated to better align with its new investment focus. The earlier benchmark, NIFTY Medium Duration Debt Index A-III, will be replaced by a composite index comprising NIFTY Composite Debt Index (60%) and NIFTY 50 Arbitrage Index (TRI) (40%). This dual-component benchmark is to track the performance of the fund’s diversified investment approach, incorporating both debt and arbitrage segments.

Updated Riskometer Classification

The scheme’s riskometer, which indicates the potential risk of the fund, has been revised. It has shifted from a Moderate Risk rating to a Low to Moderate Risk. 

Important Dates & Notifications

As per regulatory requirements, unitholders have been provided with a 32-day exit window from December 27, 2024, to January 27, 2025. During this period, investors who do not consent to the changes can either redeem or switch their investments without incurring any exit load. No action is required for investors who agree with the proposed changes.

Investors are advised to review these updates carefully, as changes in fundamental attributes may impact their investment goals. Details of these modifications are outlined in the fund’s official communication and are available on the Bandhan Mutual Fund website.

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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.