Bandhan CRISIL-IBX 10:90 Gilt+SDL Index - Dec 2029 Fund
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Business Overview
The Bandhan CRISIL-IBX 10:90 Gilt+SDL Index - Dec 2029 Fund is designed for conservative investors seeking stability and regular income through government securities and state development loans. This fund offers a balanced exposure to the fixed income market, making it ideal for risk-averse individuals and those planning for future financial goals. With a focus on long-term growth, it plays a crucial role in diversifying investment portfolios while ensuring capital preservation.
- Stable returns through government securities
- Ideal for conservative and risk-averse investors
- Diversifies investment portfolio effectively
- Focus on long-term capital preservation
- Regular income through fixed income assets
Investment Thesis
Bandhan CRISIL-IBX 10:90 Gilt+SDL Index Fund presents a compelling investment opportunity due to its robust promoter credibility, a significant growth potential in digital services, and attractive valuations compared to its peers. This combination positions it as a strong contender in the fixed income space.
- Strong backing from a reputable promoter group enhances trust and stability.
- Digital services are expanding rapidly, providing a substantial growth runway.
- Valuations are appealing when compared to similar funds, offering potential upside.
- Focus on Gilt and SDL securities ensures lower risk and steady returns.
- Ideal for conservative investors seeking long-term wealth creation.
Opportunity vs Risk
- Stable returns from government bonds
- Potential for capital appreciation
- Diversification in fixed income portfolio
- Low correlation with equities
- Interest rate fluctuations
- Credit risk from SDLs
- Inflation impact on returns
- Liquidity concerns in bond market
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8BusinessHighThe sector is stable with a clear model but lacks a strong moat.
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10GrowthHighRevenue growth has been inconsistent, with fluctuating profit margins.
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7ProfitabilityHighROE and ROCE are moderate, with OCF showing some volatility.
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6ValuationGoodValuation metrics are average compared to peers.
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5BalanceGoodDebt levels are manageable, but liquidity is a concern.
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6GovernanceGoodPromoter holding is decent, but there are some concerns about disclosures.
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4DriversGoodLimited growth catalysts and execution risks are present.
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2TechnicalsLowMarket sentiment is weak with low liquidity.