NSE unveils 3 new target maturity indices to attract investors in debt markets

National Stock Exchange of India (NSE), Index Services subsidiary, NSE Index has launched three new Target Maturity Indexes. These are Nifty AAA CPSE Bond Plus SDL April 2027 60:40 Index, Nifty G-Sec June 2027 Index and Nifty SDL September 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 the three indices have a base date of March 16, 2022 and a base price of 1000. The indices will be reviewed at the end of each calendar quarter.

NSE Indices said in a statement that the index is expected to attract investors who wish to invest in debt portfolios with a target maturity theme. It is expected to act as a benchmark for asset managers and be the reference index tracked by passive funds such as exchange-traded funds (ETFs), index funds and structured products.

According to NSE indices, Nifty AAA CPSE Bonds Plus SDL April 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. index. Whereas the Nifty G-Sec June 2027 Index has 100% allocation to the five most liquid government securities (G-Secs). In addition, the Nifty SDL September 2027 Index has the highest allocation of 100% of the outstanding amount for fifteen State Development Loans (SDLs) issued by States/UTs.

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