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Bandhan Mutual Fund has launched Bandhan Long Duration Fund, an open-ended that will invest in the portfolio having Macaulay duration of over 7 years.
In a press release, Vishal Kapoor, CEO, Bandhan MF 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 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.
