Bandhan Mutual Fund has revealed its latest offering Bandhan Retirement Fund. The fund’s primary objective is to achieve consistent capital growth over the long term through a diversified portfolio of equities, fixed income, and various other financial instruments.
Bandhan Mutual Fund has introduced Bandhan Retirement Fund, designed to help investors achieve their retirement goals by pursuing long-term capital growth through a combination of equity, debt and other financial instruments. has been done In a statement, Bandhan Mutual Fund highlighted that the mutual fund is a dynamic asset allocation approach that aims to expose investors to the potential gains of the equity market while mitigating downside risks during market downturns. Allowing to be taken advantage of.
The new fund offer started on Thursday, September 28, 2023, and will end on Thursday, October 12, 2023. Investors can participate in Bond Retirement Fund through authorized mutual fund distributors, online platforms, or directly. Bandhan Mutual Fund Website.
Bond Retirement Fund Investment Strategy
A bond retirement fund uses a quantitative model-based approach to dynamically allocate assets between equity and debt, aiming to benefit from market volatility while protecting against downturns. The model combines valuation, fundamental, and technical factors to optimize allocations. It also offers investors the option of Systematic Underroll Plan (SWP) for post-retirement cash flow management. The fund has a lock-in period of five years to promote long-term investment and compounding.
It focuses on quality equities with sustainable growth and fair valuations, maintaining a minimum 65% equity allocation while incorporating hedged positions for favorable equity taxation. The debt portfolio is diversified with high-quality instruments such as GSec, SDL, corporate bonds, and money market instruments.
Why Choose Mutual Fund for Retirement?
According to Amfi data up to June 2023, about half of equity assets owned by individual investors are typically held for less than two years.
As shown in the accompanying example, an investment growth with a compound annual growth rate (CAGR) of 10% begins gradually during the first two years but experiences significant growth by the fifth year, eventually over a decade. More than doubled during
This phenomenon is called compounding, which usually becomes noticeable in the fifth year of investment and beyond. Investors typically use compounding when their goal is to build wealth.
When you invest in a retirement mutual fund, which has a mandatory lock-in period of five years, you automatically benefit from the power of compounding.
First Published: 02 Oct 2023, 10:26 IST
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