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The National Stock Exchange of India (NSE), index services subsidiary, NSE Indices has launched three new target maturity indices. These are Nifty AAA CPSE Bond Plus SDL Apr 2027 60:40 Index, Nifty G-Sec Jun 2027 Index, and Nifty SDL Sep 2027 Index.
The three indices have a target maturity structure with maturity dates of April 30, 2027, June 30, 2027, and September 30, 2027, respectively.
Further, all three indices have a base date of March 16, 2022, and a base value of 1000. Indices will be reviewed at the end of each calendar quarter.
In a statement, NSE Indices said that the indices are expected to appeal to investors looking to invest in debt portfolios with the target maturity theme. It is expected to act as a benchmark for asset managers and be a reference index tracked by passive funds in form of Exchange Traded Funds (ETFs), index funds, and structured products.
As per the NSE Indices, the Nifty AAA CPSE Bond Plus SDL Apr 2027 60:40 Index has 60% allocation to nine AAA-rated bonds issued by PSUs and 40% allocation to thirteen State Development Loans (SDLs) as on the base date of the index. While the Nifty G-Sec Jun 2027 Index has 100% allocation to the five most liquid government securities (G-Secs). Furthermore, the Nifty SDL Sep 2027 Index has a 100% allocation to fifteen State Development Loans (SDLs) issued by states/UTs with the highest outstanding amount.
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