Bandhan Ultra Short Duration Fund(M-IDCW Reinvest)
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Business Overview
Bandhan Ultra Short Duration Fund is designed for investors seeking stable returns with a short investment horizon. This fund primarily invests in debt and money market instruments, making it suitable for conservative investors looking to park their funds safely while earning reasonable interest. It helps in managing liquidity needs effectively without compromising on returns. Ideal for those looking to balance risk and reward, this fund offers a strategic approach to short-term investing in the Indian market.
- Focuses on short-term debt instruments
- Ideal for conservative investors
- Helps manage liquidity needs
- Offers stable returns with lower risk
- Suitable for short investment horizons
Investment Thesis
Bandhan Ultra Short Duration Fund stands out due to its robust promoter credibility, leveraging the strength of the Bandhan Group. With a significant growth runway in digital services, it positions itself well for future expansion. Additionally, its attractive valuation compared to peers makes it a compelling investment opportunity for retail investors.
- Strong backing from the reputable Bandhan Group enhances trust.
- Digital services are poised for substantial growth, driving future returns.
- Attractive valuation compared to industry peers offers a competitive edge.
- Focus on short-duration investments minimizes interest rate risk.
- Consistent performance track record instills confidence among investors.
Opportunity vs Risk
- Potential for stable returns
- Low interest rate environment
- Diversification in fixed income
- Growing demand for short duration funds
- Interest rate fluctuations
- Credit risk in underlying assets
- Market volatility impacts
- Liquidity concerns in downturns
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10BusinessHighThe fund operates in a stable sector with a clear investment model.
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10GrowthHighConsistent revenue and profit growth observed over the past few years.
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10ProfitabilityHighROE and ROCE are above industry averages, but OCF is slightly lower than net profit.
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8ValuationHighValuation metrics are in line with peers, but slightly on the higher side.
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7BalanceHighDebt levels are manageable with adequate liquidity.
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6GovernanceGoodPromoter holding is strong, but some pledging exists.
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5DriversGoodGrowth drivers are present, but execution risks remain.
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5TechnicalsGoodMarket sentiment is neutral with moderate liquidity.