Key Takeaways
- The Bandhan Retirement Fund targets long‑term capital appreciation for retirement goals.
- A five‑year lock‑in encourages investors to stay invested and benefit from compounding.
- Investors can use the Systematic Investment Plan or Systematic Withdrawal Plan for flexible contributions and withdrawals.
Kolkata: Bandhan Mutual Fund 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 New Fund Offer 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:andhanmutual.com/nfo/bandhan-retirement-fund/
Highlighting why retirement planning is a critical goal, CEO Vishal Kapoor noted that higher life expectancy, rising living costs, and soaring healthcare inflation could squeeze investor savings, making it pertinent to plan for retirement.
Generally, investors with a conservative approach grapple to beat inflation, facing a shortage of funds for expenses. While maintaining the same standard of living post‑retirement is imperative, lack of preparedness could derail the journey to a sizeable retirement corpus.
Mutual funds are an effective vehicle, offering flexibility through the Systematic Investment Plan (SIP) and lump‑sum routes, providing higher growth potential. Investors seeking diversification, tax efficiency, and inflation‑beating potential should consider the Bandhan Retirement Fund.
Highlighting why investors could consider investing in the Bandhan Retirement Fund, Fund Manager, Bandhan AMC Viraj Kulkarni,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 fund’s lock-in period of five years would keep investors’ emotions at bay, encouraging them to remain invested for a reasonably long period and reap the compounding benefit.
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
