New Target Maturity Funds of Edelweiss AMC with 2027 and 2037 maturity dates launched. Details | The Financial Express

New Target Maturity Index Funds of Edelweiss AMC with 2027 and 2037 maturity dates launched. Details

Target maturity ETFs and index funds are open-ended debt funds with a specified maturity date that aligns with the expiry date of the bonds they have in their portfolios.

New Target Maturity Index Funds of Edelweiss AMC with 2027 and 2037 maturity dates launched. Details
Edelweiss AMC launches two target maturity index funds. Representational image

Edelweiss Asset Management Limited on Tuesday (27 September) announced the launch of two new target maturity index funds – Edelweiss CRISIL IBX 50:50 Gilt Plus SDL June 2027 & Edelweiss CRISIL IBX 50:50 Gilt Plus SDL April 2037 Index Fund. In a statement, Edelweiss AMC said the index funds will invest in a mix of Indian Government Bonds (IGBs) and State Development Loans (SDLs). Both the schemes are open-ended target maturity Index Fund investing in the constituents of CRISIL IBX 50:50 Gilt Plus SDL Index – April 2037 & June 2027, respectively.

“Our new fund with April-2037 maturity will be India’s first Target Maturity Fund with 15 year-long maturity. Our endeavor has been to get long-term money through these target maturity funds and we are now the largest player managing long-term fixed income money of investors,” said Radhika Gupta, MD & CEO, Edelweiss Asset Management Limited.

The overall passive debt category has crossed Rs 1 lakh crore mark — at the industry level – this growth was kickstarted by the launch of the first tranche of the Bharat Bond ETF in December 2019. Edelweiss AMC was the first fund house to launch such a product. So far, 5 tranches of Bharat Bond ETFs have been launched – 2023, 2025, 2030, 2031, & 2032 with more in the pipeline.

Also Read: 10 New Fund Offers to invest in during Navratri 2022

NFO Dates

The Edelweiss CRISIL IBX 50:50 Gilt Plus SDL April 2037 Index Fund will be open for subscription between 27th September 2022 to 6th October 2022.

Edelweiss CRISIL IBX 50:50 Gilt Plus SDL June 2027 Index Fund will be open for subscription between Thursday 6th October 2022 to 11th October 2022.

Minimum investment

You can invest in these schemes for a minimum of Rs 5000.

Maturity Date

The funds will have a defined maturity date. Edelweiss CRISIL IBX 50:50 Gilt Plus SDL June 2027 Index Fund will mature on June 30, 2027. Edelweiss CRISIL IBX 50:50 Gilt Plus SDL April 2037 Index Fund will mature on April 29, 2037, the AMC said.

Investment Strategy

The Scheme will follow a Buy and Hold investment strategy in which existing bonds will be held until maturity unless sold for meeting redemptions, dividend payment rebalancing requirements or optimizing the portfolio construction process. The portfolio of eligible securities invested by the Scheme will have, in aggregate, similar quantitative characteristics like that of the underlying index.

Why should anyone invest?

Target Maturity ETFs and index funds are open-ended debt funds with a specified maturity date that aligns with the expiry date of the bonds they have in their portfolios.

“These funds are simple and transparent investment vehicles that allow investors to have liquidity, stability, and predictability of returns along with lower tax compared to traditional instruments like fixed deposits. The funds invest only in constituents that are eligible as per the index methodology and investment objective of the schemes,” the AMC said.

Disclaimer: Mutual fund investments are subject to market risks. Read all scheme-related documents carefully and, if in any confusion, consult a financial advisor)

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