New Delhi: Edelweiss Asset Management Limited has announced the launch of a new Target Maturity Index Fund Edelweiss CRISIL IBX 50:50 Gilt Plus SDL September 2028 Index Fund. The fund will invest in a mix of Government of India Bonds (IGBs) and State Development Loans (SDLs).
Edelweiss CRISIL IBX 50:50 Gilt Plus SDL September 2028 Index Fund will be open for subscription from November 1 to 7. The scheme is an open-ended Target Maturity Index fund investing in the components of CRISIL IBX 50:50 Gilt Plus SDL Index – September 2028.
“Target Maturity Index Fund is one of the prudent fixed income options for investors to lock in investments at the current yield. With the successful launch of various debt fund options including Target Maturity Fund in the last two years, we are now the largest player in managing long term fixed income funds for investors. Radhika Gupta, Managing Director and CEO, Edelweiss Asset Management Limited said, “We aim to provide a wide range of fixed income options to investors with stable returns while investing in the highest rated debt instruments.”
According to the fund house, following the success of Edelweiss AMC Bharat Bond ETF, since 2019 a total of 30 target maturity funds have been launched by 11 different AMCs with their AUM (Asset Under Management) crossing. 1.15 trillion by 30 September 2022. Edelweiss reaches AUM of more than AMC 60,000 crore in a little over two years (as on 30 September) in the passive loan category.
The fund will come with a minimum investment amount 5,000, and Edelweiss CRISIL IBX 50:50 Gilt Plus SDL September 2028 Index Fund will have a defined maturity date.
The scheme will follow a buy-and-hold investment strategy in which existing bonds will be held to maturity until sold for redemption, dividend payment rebalancing requirements or to optimize the portfolio building process. The portfolio of eligible securities invested by the scheme shall have the same quantitative characteristics as the underlying index as a whole.
Target maturity ETFs and index funds are open-ended debt funds with a specified maturity date that aligns with the expiration date of the bonds in their portfolios. These funds are simple and transparent investment vehicles that allow investors to predict liquidity, stability and returns with lower taxes as compared to traditional instruments like fixed deposits. Funds invest only in those components which are eligible as per the index pattern and investment objective of the schemes.
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