Mutual Fund News : IDFC Mutual Fund Introduces IDFC Gilt 2027 Index Fund

Publish Date:

IDFC Mutual Fund has launched an open-ended Target Maturity Index fund - IDFC Gilt 2027 Index Fund.

The scheme will be investing in constituents of CRISIL Gilt 2027 Index.

The investment objective of the scheme is to provide investment returns closely corresponding to the total returns of the securities as represented by the CRISIL Gilt 2027 Index before expenses, subject to tracking errors. However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved.

IDFC Gilt 2027 Index Fund is a target maturity index fund which will employ an investment approach designed to track the performance of CRISIL Gilt 2027 Index

The scheme is mandated to invest at least 95% of its total assets in the securities comprising of CRISIL Gilt 2027 Index.

The Scheme may also invest upto 5% of its assets in Government Securities maturing on or before maturity date of the Scheme, Cash, Money Market Instruments.

IDFC Gilt 2027 Index Fund’s performance will be benchmarked against CRISIL Gilt 2027 Index.

The fund will be managed by Mr Anurag Mittal.

The NFO opens for subscription on March 12, 2021, and closes on March 19, 2021. The scheme will re-open for ongoing subscription and redemption within five business days from the date of allotment of units.

The NFO is priced at Rs 10/- per units. 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 Dividend Option (Dividend Re-investment and Dividend Pay-out facilities).

IDFC Gilt 2027 Index Fund will mature on June 30, 2027. If the maturity date falls on a non-business day, the immediately following business day shall be considered as maturity date of the Scheme.

Upon the Maturity Date, the Units of the Scheme will be automatically Redeemed at the NAV applicable on the Maturity Date. The Redemption proceeds will be paid to the Unit holders whose names appear on the register of Unit holders on the Maturity Date. Redemption proceeds shall be paid to investors not later than 10 business days from the date of maturity of the scheme.