Publish Date:
Edelweiss Mutual Fund has launched India’s first passive short duration fund – Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund
It is an open-ended debt Index Fund investing in the constituents of CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index. A relatively high interest rate risk and relatively low credit risk.
Accordingly, the investment objective of the scheme is to replicate CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index by investing in a diversified portfolio of Indian Government Bonds and SDLs, subject to tracking errors. However, there is no assurance that the investment objective of the Scheme will be realized, and the Scheme does not assure or guarantee any returns.
Under normal circumstances Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund will hold an allocation of 95% to 100% of its assets in Indian Government Bonds and SDLs representing CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index and 0% to 5% in Money Market Instruments.
As per the Scheme Information Document, Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund employs a passive approach designed to track the performance of CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index.
Accordingly, the Scheme will invest 95% to 100% of its portfolio in a mix of Indian Government Bonds and in State Development Loans (SDLs) replicating the portfolio of CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index. The Scheme may also invest in money market instruments to meet liquidity requirements.
The portfolio of eligible securities invested by the Scheme is expected to have, in aggregate, fundamental characteristics such as modified duration, weighted average maturity, aggregate credit ratings, aggregate Yield to Maturity (YTM) etc. along with other liquidity parameters in line with CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index.
Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund’s performance will be benchmarked against CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index
The scheme will be managed by Mr. Dhawal Dalal and Mr. Rahul Dedhia.
The NFO opens for subscription on January 27, 2023 and closes on February 10, 2023. The schemes will reopen for continuous sale and repurchase on February 22, 2023.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000/- and in multiples of any amount thereafter.
The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum Capital Withdrawal (IDCW) Option.