homevideos Newspersonal finance NewsDecoding investment strategy, associated risks of Bandhan MF international debt fund
Decoding investment strategy, associated risks of Bandhan MF international debt fund
The New Fund Offer (NFO) period which opened on Friday, March 10, 2023, closes on Thursday, March 23, 2023. Investment can be made through licensed mutual fund distributors and online platforms, as well as, directly on https://www.bandhanmutual.com, the fund house said.
Bandhan Mutual Fund recently launched India's first international debt fund. It is an open-ended fund of fund (FOF) scheme investing in units or shares of overseas index funds or ETFs which track an index with us treasury securities in the 0-1 year maturity range. CNBC-TV18 spoke to Vishal Kapoor, CEO of Bandhan Mutual Fund about how can investors begin their investment journey in overseas funds and what are the attached risks.
Kapoor said that the new fund offering (NFO) opens up a brand new asset class for Indian investors because so far international investing was largely focused on equity investing.
"This is the first product which allows you to invest into international debt, in this case, the US Treasury Bond 0-1 year duration," Kapoor said.
He added that a product like this is used to build up an asset that investors can use later for their children's education abroad, those who are looking for vacationing abroad or may have some medical requirements in the future.
He said, “This is invested in the safest product possible, which is US Treasuries with the lowest duration possible, which is zero to one year and therefore it offers a very safe way to hold US dollars."
Bandhan Mutual Fund, which recently announced the name change for all its schemes, following the rebranding of the fund house, confirmed that the recently launched India’s first US debt (ETF) fund name has changed to Bandhan US Treasury Bond 0-1 Year Fund of Fund.
The fund provides investors a route to create a dollar asset that benefits from the relatively high quality, reasonable safety, and current high yield of US Treasuries. The New Fund Offer (NFO) period which opened on Friday, March 10, 2023, closes on Thursday, March 23, 2023.
Investment can be made through licensed mutual fund distributors and online platforms, as well as, directly on https://www.bandhanmutual.com, the fund house said.
For the entire discussion, watch the accompanying video
(Edited by : Anshul)
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