Best Bandhan Debt Mutual Funds - A Complete Guide till 2025
Debt mutual funds are frequently considered by investors who want to get safe, fixed-income instruments. Bhandhan mutual fund (previously being IDFC mutual fund) is one of the top fund houses that have positioned itself well with their various form of debt schemes. As the market and interest rates remain unpredictable in 2025, the need to trust Bandhan debt mutual funds even more is going to be of importance to both new and experienced investors.
This article of the paper is a simplified version of how Bandhan debt fund operates, the best products offered, and the comparisons of products and how investors can maximize their returns without taking risks.
Why do you want to consider Bandhan Debt Mutual Funds?
Bandhan Mutual Fund has various fixed income plans that serve both short term and medium term as well as long term objectives. They usually invest in government securities, corporate bonds and money market instruments, and they are expected to provide a stable payoff with reasonably lower risk than equity funds.
Debt funds are still a favourite in India where people were willing to diversify and also hold capital and this applies more in the face of uncertain economic conditions that are likely to occur in 2025. As per a number of market researchers, after the acquisition of IDFC AMC, Bandhan Munical Fund has enhanced its services, introducing superior fund management practices and an enhanced range of products.
What is the originality of Bandhan Debt Funds?
- Collection of schemes: liquid, ultra short, short, medium, corporate bond, and gilt schemes.
- Good capital management: headed by skilled debt managers.
- Risk management: gives importance to the quality of credit and liquidity.
- Apposite to moderate and conservative risky investors.
- Frequent income plans that have growth or dividend payments.
People Also Ask:
Do Bandhan debt mutual funds make a good investment opportunity in 2025 in case it is the first time?
Yes, Bandhan debt mutual funds are developed with the consideration of the requirements of first-time investors and seasoned investors and have different schemes with both safety and steady returns.
What are the good Bandhan Debt mutual funds in 2025?
Bhandhan MF has a number of the best performing debt funds. All are targeted at a certain investment time and risk level. The following are the top performing ones according to the latest 2025 figures:
Bandhan Liquid Fund
- Appropriate even to store excess cash over a few days to months.
- Investment in high quality money market files.
- Low risk of capital loss
Key Features/Highlights
- 1-year average returns: 6.8 percent.
- Maturity of portfolio: below 90 days.
- Rate of expense: 0.22 percent (Direct Plan)
- Minimum investment: Rs 500
Pros
- Very liquid to be redeemed easily.
- Appropriate in the case of emergency funds.
Cons
- Marginally lower returns as compared to Fixed Deposits in rising rates cycles.
Bandhan Short Term Plan
- Investors of 1-3 year horizon.
- Bonds and securities of governments are its primary investments.
Key Features/Highlights
- Mean returns (3 years): 7.41 percent
- Modified duration: 2.1 years
- Ratio of expenses: 0.44 percent (Direct Plan)
Pros
- Balances reduce risk and returns towards medium-term requirements.
- The interest rate risk is lower than that of long duration funds.
Cons
- The returns can also be subject to variation with the varying interest rates.
Did you know?
The short term debt funds such as Bandhan Short Term Plan can usually perform better compared to savings account with a marginally lower risk which has a very high interest rate particularly during the times when the interest rates are at their highest point.
Bandhan Corporate Bond Fund
- Fits best with investors who are moderately risk-takers and want slightly higher returns.
Key Features/Highlights
- At least 80 per cent portfolio of highest rated corporate bonds.
- Mean returns (3 years): 7.75 percent
- Modified duration: 2.8 years
Pros
- Focus on high credit quality
- Interests in giving stable and relatively high returns.
Cons
- Continues to be exposed to some credit and interest rate risks.
Comparison of Bandhan Banking and PSU Debt Fund
This fund makes the investment in the bonds of the public sector undertakings, banks, and the public financial institutions mostly.
| Fund Name | 1 Yr Return | 3 Yr Return | Modified Duration | Expense Ratio |
|---|---|---|---|---|
| Bandhan Banking and PSU Debt Fund | 7.12 percent | 7.89 percent | 3.5 years | 0.38 percent |
Best Uses: Investors that prioritise high safety and steady returns, normally better than fixed deposits.
Pros
- Invests in majority of the government-backed entities.
- Reduced risk to credit as compared to generic corporate bond funds.
Cons
- May is sensitive to interest rates.
Expert Insight
The ideal compromise between FD returns and those of other financial instruments is banking and PSU funds such as the one that Bandhan provides.
What of Bandhan Gilt Fund or Bandhan Dynamic Bond Fund?
Should you desire pure exposure of government bonds or be able to adjust the duration, see:
Bandhan Gilt Fund
- Invests one hundred per cent. in sovereign government bonds.
- Interest rate, and no credit risk.
Pros
- Very low risk of default
- Beneficial to the conservative investors and long term planners.
Cons
- The returns may be volatile in case of a sudden change in the interest rates.
Bandhan Dynamic Bond Fund
- The fund manager is able to change dynamically between long term bonds, short term bonds and medium term bonds.
- Easy to manoeuvre in unpredictable interest rates.
Pros
- Flexibility by fund managers to reduce the risks.
- Has the potential to seize opportunities across yield curves.
Cons
- A little more costly proportion when compared to fixed maturity funds.
- Needs faith in the timing and plan of the fund manager.
Which Bandhan Debt Mutual Fund To Select by 2025?
Let us compare these best funds to make it easy to make a decision:
| Fund Type | Expected Return (2025) | Primary Risk | Ideal Holding | Lock-in/Exit Load |
|---|---|---|---|---|
| Liquid Fund | 6.8 percent | Interest rate | Emergency/very short term | Nil 7 days |
| Short Term Plan | 7.4 percent | Interest rate | 1 to 3 years, moderate risk | 0.25 percent (1 mo) |
| Corporate Bond Fund | 7.7 percent | Credit, Interest | Stable, mid-term investments | 0.5 percent (1 yr) |
| Banking and PSU Debt Fund | 7.9 percent | Minor credit | Risk averse, 2 to 4 years | Nil |
| Gilt Fund | Maximum 8.2 percent | Interest rate | Long term safety-seekers | Nil |
| Dynamic Bond Fund | 7.5 percent | Manager skill | Tactical, multi-duration | Nil |
People Also Ask
What is the best Bandhan debt fund to invest in to save taxes in 2025?
Debt funds cannot be tax-saving under Section 80C, to use it towards tax-aided purposes, look at Bandhan ELSS funds.
What Do Bandhan Debt Mutual Funds as a Group do?
Major Pros
- Broad offering to a variety of investment horizons.
- Regulated by SEBI.
- Lump sum options and Systematic Investment Plan (SIP).
- Frequent disclosures on portfolios.
Major Cons
- There is no guarantee of a capital protection in debt funds.
- Short term returns can be affected by interest rate and credit risk.
- The tax efficiency also evolves since the 2023 changes in the debt fund taxation.
Did you know?
Debt funds capital gains are included in your income and taxed according to your income tax bracket since 2023 regardless of the time you held the debt.
People Also Ask
Q: Does the Bandhan Liquid Fund outperform savings account in 2025?
A: Yes, idle money is not required urgently, but Bankhan Liquid Fund has a higher tendency to give better returns with liquidity on a daily basis but the returns are subject to change.
Q: What is the effect of changes in rates on returns and NAV in Bandhan Debt Mutual Funds?
A: Increase in RBI rates may temporarily decrease the NAV of longer duration funds, however, short duration/low maturity funds are less affected.
Q: Is it better to have Direct Plan or Regular Plan of Bandhan Debt Funds in 2025?
A: Direct Plans cost less in terms of ratio and therefore will provide more long-term returns although you have to invest without distributor guidance.
Quick Recap
- Bandhan MF has some of the best debt mutual funds in India that 2025 should have, which is applicable to conservative, moderate, and tactical investors.
- The Liquid Funds are suitable in terms of emergency situations, Short and Corporate Bond Funds are good in terms of medium term needs and Gilt and PSU funds are good in terms of safety.
- Make the best match of your stock investment according to your goal and investment horizon.
- Keep an eye on the taxation and interest rate perspectives to attain maximum results.
Expert Insight
To Indian investors, the portfolio is healthy and resilient, through the combination of both debt funds and equity or hybrid products of Bandhan, particularly in dynamic and dynamic economic circumstances. - Senior Fund Analyst, Mumbai
TLDR
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Mutual funds of Bandhan that were to be utilized in 2025 in terms of debt are secure and safe in regards to both the short term and the long term objectives.
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Select liquid and short term, corporate bond, PSU and gilt funds according to your investing risk and time span.
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Its advantages are flexibility, superior returns to savings accounts and good fund management; its disadvantages are interest rate risk and new tax regulations.
Sources
- Bandhan Mutual Fund Official Site.
- Moneycontrol Fund Analysis
- SEBI Guidelines 2024
- Fund Rating Value Research Online.
