Bandhan Mutual Fund on Tuesday, September 26, announced the launch of the Bandhan Retirement Fund, with the objective to provide long-term capital appreciation by investing in a mix of equity, debt, and other instruments to help investors meet their retirement goals. The dynamic asset allocation strategy of the fund provides investors with an opportunity to participate in the equity market upside while cushioning the potential downside during a market fall, the fund house said.

Live TV

Loading...

The New Fund Offer (NFO) will open on Thursday, September 28, 2023, and close on Thursday, October 12, 2023. Investment in Bandhan Retirement Fund can be made through licensed mutual fund distributors and online platforms, as well as directly on https://bandhanmutual.com/nfo/bandhan-retirement-fund/

Highlighting why retirement planning is a critical goal, Vishal Kapoor, CEO, Bandhan AMC Limited (Bandhan AMC) said, “Higher life expectancy, rising cost of living, and soaring healthcare inflation could squeeze investor savings, making it pertinent to plan for retirement. Generally, investors with a conservative approach to building a retirement plan grapple to beat inflation, facing a shortage of funds to meet their expenses. While maintaining the same standard of living post-retirement is imperative; the lack of preparedness could derail the journey to create a sizeable retirement corpus."

"Mutual funds are an effective vehicle for retirement planning, providing the flexibility to invest through the Systematic Investment Plan (SIP) and the lumpsum route, offering the benefit of relatively higher growth potential," he said.

Highlighting why investors could consider investing in the Bandhan Retirement Fund, Viraj Kulkarni, Fund Manager, Bandhan AMC added, “Bandhan Retirement Fund follows a model-based approach for dynamic allocation across equity and debt to participate in the market upside while cushioning the potential downside during a market fall. This quantitative model has a robust combination of valuation, fundamental, and technical parameters to make the allocation effective for investors. The fund also allows investors to choose the Systematic Withdrawal Plan (SWP) route to meet their cash flow needs post-retirement.”

The equity investment framework of Bandhan Retirement Fund would focus on quality companies with a long-term growth trajectory and justified valuations. The minimum equity holding requirement of 65 percent would be maintained with investment in hedged equity allocation to ensure that equity taxation eligibility is met. The debt portfolio would be diversified across quality instruments like GSec, SDL, Corporate Bonds, and Money Market Instruments, the fund house said.

(Edited by : Anshul)

First Published:Sept 26, 2023 5:07 PM IST