Bandhan Mutual Fund Files Draft for Financial Services Sectoral Debt Fund NFO

Bandhan Mutual Fund has filed a draft document with the market regulator for launching a new sector-focused debt scheme named the Bandhan Financial Services Sectoral Debt Fund.

The proposed fund will be an open-ended debt scheme that primarily invests in instruments issued by entities within the financial services sector, such as banks and financial institutions.

According to the draft, the scheme plans to allocate 80% to 100% of its portfolio to high-quality debt securities rated AA+ and above. The remaining portion, up to 20%, may be invested in government securities, money market instruments, and cash equivalents.

Additionally, the fund may invest in securitised debt and overseas securities, with exposure of up to 50% of total assets, subject to regulatory limits.

In terms of risk profile, the scheme is expected to carry moderate credit risk along with relatively high interest rate risk. Its benchmark will be the CRISIL-IBX Financial Services 9–12 Months Debt Index, which tracks short-duration instruments like commercial papers, certificates of deposit, and corporate bonds issued by financial sector entities.

During the New Fund Offer (NFO), units will be available at a face value of ₹10. The scheme will reopen for continuous purchase and redemption within five business days after allotment.

The minimum investment amount is set at ₹1,000 for lump sum investments and ₹100 for SIPs, with a minimum of six instalments required. Notably, the scheme will not levy any exit load.

The fund will be offered under both Direct and Regular plans, with options for growth and income distribution, providing flexibility for different investor preferences.

For More Info : Click Here

Disclaimer – The fund’s investment objective, asset allocation, and risk profile are as described in the scheme offer documents, and investor shall read carefully before investing. All information has been obtained from sources believed to be reliable; however, no guarantee, warranty, or representation is made regarding its accuracy, completeness, or adequacy. Portfolio construction, execution strategies, and the use of permitted instruments are based on prevailing market conditions and subject to SEBI Mutual Funds regulations. Any income distributions are subject to applicable tax laws, which may change from time to time. Investors should consult their financial and tax advisors regarding applicable laws, investment horizon, and suitability of the Scheme.