Publish Date:
HDFC Mutual Fund has Launched two new schemes – HDFC Nifty G-Sec Dec 2026 Index Fund and HDFC Nifty G-sec July 2031 Index Fund
Both the schemes are open-ended Target Maturity Index Funds replicating Nifty G-Sec Dec 2026 Index and Nifty G-sec July 2031 Index respectively. A relatively high interest rate risk and relatively low credit risk.
Accordingly, the investment objective is to generate returns that are commensurate (before fees and expenses) with the performance of the Nifty G-sec Dec 2026 Index and Nifty G-sec July 2031 Index (Underlying Indices), subject to tracking errors. However, there is no assurance that the investment objective of the Schemes will be realized.
Under normal circumstances, HDFC Nifty G-Sec Dec 2026 Index Fund and HDFC Nifty G-sec July 2031 Index Fund will hold an allocation of 95% to 100% of its assets in Government Securities/SDL, TREPS on Government Securities/Treasury bills and 0% to 5% in Money Market Instruments and Units of liquid and debt mutual fund schemes.
As per the Scheme Information Document, HDFC Nifty G-Sec Dec 2026 Index Fund and HDFC Nifty G-sec July 2031 Index Fund will be passively managed which will employ an investment approach designed to track the performance of the underlying indices, subject to tracking difference.
Both the Schemes will follow Buy and Hold investment strategy in which existing government securities will be held till maturity unless sold for meeting redemptions requirement or to rebalance the portfolio. During normal circumstances, both the Scheme’s exposure to money market instruments will be in line with the asset allocation table. However, in case of maturity of securities in the Scheme portfolio, the reinvestment will be in line with the index methodology.
HDFC Nifty G-Sec Dec 2026 Index Fund and HDFC Nifty G-sec July 2031 Index Fund’s performance will be benchmarked against Nifty G-Sec Dec 2026 Index and Nifty G-sec July 2031 Index.
The scheme will be managed by Mr Vikash Agarwal.
The NFO opens for subscription on November 01, 2022 and closes on November 09, 2022. The schemes will reopen for continuous sale and repurchase within 5 business days from the date of allotment.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 100/- and in multiples of any amount thereafter.
Both the schemes offer Regular Plan and Direct Plan each plan offers Growth option only.
[Read: Are HDFC Nifty G-Sec Dec 2026 and July 2031 Index Funds Worth Including In Your Debt Portfolio?]