NEWSXT NETWORK: Bandhan Mutual Fund announced the launch of the Bandhan Long Duration Fund, an open-ended, long-term debt scheme that invests in instruments such that the portfolio Macaulay duration will be over 7 years. The fund may offer a compelling opportunity for investors who are expecting a fall in the current near-peak interest rates, driven by structural improvements in the economy. The New Fund Offer (NFO) for the fund is set to open on Tuesday, 5 March 2024, and will close on Monday, 18 March 2024. Investment in the Bandhan Long Duration Fund can be made through licensed mutual fund distributors and investment advisors, online platforms, and directly at https://bandhanmutual.com/nfo/bandhan-long-duration-fund/
Talking about the new offering, Vishal Kapoor, CEO, Bandhan AMC said, “Our macroeconomic environment is entering a unique phase. A combination of structural and cyclical improvements is likely to reduce deficits, ease inflation, and attract foreign investments in Indian bonds. These developments are expected to pave the way for a lower interest rate regime over the medium term, creating an enticing opportunity for bond investments. Long-duration funds like our latest offering enable investors to invest at favourable rates for the long term, mitigating future reinvestment risks and offering potential capital gains as interest rates fall.”
The Bandhan Long Duration Fund is distinguished by its commitment to investing in the highest-rated instruments. The fund will explore opportunities across government and corporate bonds, with a portfolio duration anywhere beyond 7 years. The long duration of the fund may result in higher volatility compared to other debt fund categories.