Publish Date:
Edelweiss Mutual Fund has launched an open-ended target maturity Index Fund - Edelweiss NIFTY PSU Bond Plus SDL Index Fund 2027.
The scheme will be predominantly investing in the constituents of Nifty PSU Bond Plus SDL Apr 2027 50:50 Index.
The investment objective of the scheme is to track the Nifty PSU Bond Plus SDL Apr 2027 50:50 Index by investing in AAA rated PSU Bonds and SDLs, maturing on or before April 2027, 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.
Edelweiss NIFTY PSU Bond Plus SDL Index Fund 2027 is mandated to invest 95% to 100% of its net assets in Bonds issued by PSUs forming part of the bonds portion of Nifty PSU Bond Plus SDL Apr 2027 50:50 Index, and State Development Loans (SDLs) forming part of the SDL portion of Nifty PSU Bond Plus SDL Apr 2027 50:50 Index.
It can invest 0% to 5% of the net assets in Money Market instruments (treasury bills and government securities having a residual maturity upto one year, Tri-Party Repos and any other like instruments), as well as cash and cash equivalents.
Edelweiss NIFTY PSU Bond Plus SDL Index Fund 2027 is a passively managed debt Index Fund which will invest the money in PSU Bonds and SDLs maturing on or before the maturity of the scheme.
The scheme will have a defined maturity date and at maturity the investor will get the investment proceeds. However, investors can buy and sell any time through the AMC during the tenure of the fund.
As per the Scheme Information Document, the Scheme seeks to track the Nifty PSU Bond Plus SDL Apr 2027 50:50 Index subject to tracking errors. Accordingly, the Scheme will invest in AAA rated PSU bonds and SDLs maturing within the maturity date of the Scheme.
The Scheme is a Target Maturity Date Index Fund. It will mature on Friday, April 30, 2027 and will distribute all of its maturity proceeds (Net Assets) to the Unitholders within 10 (Ten) Business days from the date of maturity of the Scheme, in line with current regulatory timelines.
The Scheme will follow Buy & Hold investment strategy in which existing bonds will be held till maturity unless sold for meeting redemptions, payment of dividend, rebalancing requirement or optimizing portfolio construction process.
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 predominantly in line with Nifty PSU Bond Plus SDL Apr 2027 50:50 Index.
The Scheme may or may not hold all of the eligible securities which are part of Nifty PSU Bond Plus SDL Apr 2027 50:50 Index. The Issuer weight of the Scheme will be broadly in line with the Issuer weights in the Index subject to suitability and availability of the eligible PSU bonds and SDLs from time to time.
Edelweiss NIFTY PSU Bond Plus SDL Index Fund 2027’s performance will be benchmarked against Nifty PSU Bond Plus SDL Apr 2027 50:50 Index.
The fund will be managed by Mr Dhawal Dalal and Mr Gautam Kaul.
The NFO opens for subscription on September 30, 2021, and closes on October 08, 2021. The scheme will reopen for continuous sale and repurchase on or before October 22, 2021.
The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.
The fund offers Regular Plan and Direct Plan having Growth Option and Income Distribution cum Capital Withdrawal Option (“IDCW”) (Payout and Reinvestment).