Baroda BNP Paribas Mutual Fund has launched Baroda BNP Paribas NIFTY SDL December 2026 Index Fund. In a statement, the AMC said that this is an open-ended Target Maturity Index Fund replicating the NIFTY SDL December 2026 Index.
The fund will be managed by Mayank Prakash and will be benchmarked against the NIFTY SDL December 2026 Index. The fund has no entry or exit load. The New Fund Offer (NFO) for Baroda BNP Paribas NIFTY SDL December 2026 Index Fund opened on January 16, 2023 and it will close on January 23, 2023.
The constituents of Nifty SDL Dec 2026 Index are State Development Loans (SDLs) maturing around December 31, 2026.
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According to the statement, the fund will invest in a trio of fixed maturity, easy liquidity, and high-quality funds. It may be suitable for investors who are looking to generate income, their investment horizon matches with the maturity date of the fund and have a moderate risk appetite.
‘’Following the rapid hike in policy rates over last year, fixed income funds now offer attractive opportunities for investors. After peaking at 7.8% in April-22, CPI inflation has fallen to lowest level in the last 12 months at 5.7% in December. This reduces pressure for further hike in interest rates. We particularly like 3–5-year SDLs, where yields have risen by nearly 175-200 bps over last year and the yield curve is virtually flat beyond this maturity,” said Suresh Soni, CEO, Baroda BNP Paribas Mutual Fund.
“In addition to attractive coupon accrual, investors can potentially gain from bond price appreciation as well”, he added.
Plans
Baroda BNP Paribas NIFTY SDL December 2026 Index Fund will have two Plans: Regular and Direct.
Each plan will offer Growth Option and Income Distribution cum Capital Withdrawal (IDCW) Option. The IDCW option will offer payout of Income Distribution cum Capital withdrawal option.
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Amounts under the IDCW option can be distributed out of investors capital (equalization reserve), which is part of the sale price that represents realised gains, the statement said. However, investors are requested to note that the amount of distribution under IDCW Option is not guaranteed and subject to availability of distributable surplus.
Maturity Date: The maturity date of the scheme will be December 31, 2026.
Application amount: The minimum application amount for subscribing to this scheme is Rs 5,000 and in multiples of Re 1 thereafter
(Disclaimer: The above content is based on a press release by Baroda BNP Paribas Mutual Fund and is intended for information purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing)