Edelweiss Asset Management Limited, one of India’s fastest growing AMCs, today announced the launch of their next target maturity index fund – Edelweiss NIFTY PSU Bond plus SDL Index Fund – 2027. Passively managed, this index fund will invest in AAA-rated PSU Bonds as well as State Development Loans (SDL).
Earlier this year in March, Edelweiss AMC launched India’s first fixed income Index Fund – Edelweiss Nifty PSU Bond Plus SDL Index Fund – 2026 with a unique target maturity structure and successfully managed to reach landmark AUM of over Rs. 3,000 Cr in less than 6 months. To follow up on its success, the AMC is now launching Edelweiss Nifty PSU Bond Plus SDL Index Fund – 2027. The total AUM of Target Maturity Index Funds/ETFs managed by Edelweiss AMC is almost Rs. 40,000 Cr as on 22nd September 2021.
“After the successful foray into passive fixed income space with the launch of Edelweiss Nifty PSU Bond Plus SDL Index Fund – 2026 in March-21, we are pleased to announce the second in a series – Edelweiss Nifty PSU Bond Plus SDL Index Fund – 2027 fund. Our investors & partners have appreciated the simplicity, transparency, liquidity and low cost of our fixed income passive funds and we strive to deliver more in future and continue our leadership position. These traditional savings instruments provide safety, stability, and diversification in investment portfolio and suits need of many investors who today invest in Fixed Deposits,” commented Radhika Gupta, MD & CEO, Edelweiss Asset Management Limited.
The Edelweiss NIFTY PSU SDL Index Fund – 2027 NFO will be open for subscription between 30th September 2021 to 8th October 2021.
With an investment amount that is as low as Rs.5000/-, the fund will have a defined maturity date of 30th April 2027. At maturity, investors will get back their investment proceeds. 100% of the fund’s proceeds are invested in AAA CPSE instruments and State Development Loans. Taxed at 20% post-indexation, this fund will be more tax efficient as compared to traditional avenues.
The passively managed debt index scheme yields better returns as compared to other fixed instruments. The target maturity fund structure helps in better allocation, building high quality portfolio and efficient taxation. It is a target maturity open ended fund which provides investors exposure to a diversified portfolio. This is suitable for investors seeking exposure to a fixed income and bond like stable instrument, and for investors having a medium-term investment horizon looking to diversify in line with the index’s maturity period.
This open-ended Target Maturity Index Fund will predominantly invest in the constituents of NIFTY PSU Bond Plus SDL April 2027 50:50 Index. The Proportion of investments of AAA PSU Bonds and SDLs will be equally divided with a weightage of 50% each. Exposure to any single company’s bonds or loans would be capped at 15% of the corpus. Subsequently, there will be a quarterly rebalancing and review of the index constituents.