Edelweiss Asset Management Company Limited has recently launched Nifty PSU Bond Plus SDL Index Fund - 2026. This passively managed fund will invest in AAA-rated PSU Bonds as well as state development loans.
Radhika Gupta, CEO, Edelweiss Mutual Fund, said, "Post the success we’ve seen with corporate bond ETFs with the launch of Bharat Bond last year, it is heartening to now see a significant rise in popularity of target maturity debt funds among investors. Yields have risen in last couple of weeks and this is a good time to invest in a target maturity fund and lock-in investments at higher yields."
Here are the key things to know about the fund
“This index fund can give a fair amount of visible and tax-efficient returns, along with higher safety and transparency at a low cost. With the financialization of savings taking centre stage, such solutions will build more investor confidence in debt mutual funds,"Gupta said.
She added, "We are committed to launch more such innovative yet simple solutions for our investors."
This is a first ever, open-ended, Target Maturity Index Fund that will predominantly invest in the constituents of NIFTY PSU Bond Plus SDL 50:50 Index. The proportion of investments in 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.
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