Publish Date:
Nippon India Mutual Fund has launched – Nippon India Nifty SDL Plus G-Sec - Jun 2028 Maturity 70:30 Index Fund
It is an open-ended Target Maturity Index Fund investing in constituents of Nifty SDL Plus G-Sec Jun 2028 70:30 Index. A Relatively High interest rate risk and Relatively Low Credit Risk.
Accordingly, the investment objective of the scheme is to provide investment returns corresponding to the total returns of the securities as represented by the Nifty SDL Plus G-Sec Jun 2028 70:30 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.
Under normal circumstances, Nippon India Nifty SDL Plus G-Sec - Jun 2028 Maturity 70:30 Index Fund will hold an allocation of 95% to 100% of its assets in State Development Loans (SDLs) representing the SDL portion and Government Securities representing the G-Sec portion of Nifty SDL Plus G-Sec Jun 2028 70:30 Index and 0% to 5% in Money Market instruments & Cash and Cash equivalents.
As per the Scheme Information Document, Nippon India Nifty SDL Plus G-Sec - Jun 2028 Maturity 70:30 Index Fund is a passively managed Index fund which will employ an investment approach designed to track the performance of Nifty SDL Plus G-Sec Jun 2028 70:30 Index. The Scheme will follow Buy and Hold investment strategy in which existing SDLs & G-Secs will be held till maturity unless sold for meeting redemptions requirement.
During normal circumstances, the Scheme’s exposure to money market instruments will be in line with the asset allocation table. However, in case of maturity of SDLs/ G-secs in the Scheme portfolio, the reinvestment will be in line with the index methodology.
Nippon India Nifty SDL Plus G-Sec - Jun 2028 Maturity 70:30 Index Fund’s performance will be benchmarked against Nifty SDL Plus G-Sec Jun 2028 70:30 Index.
The scheme will be managed by Mr Vivek Sharma and Mr Siddharth Deb.
The NFO opens for subscription on November 07, 2022 and closes on November 18, 2022. The schemes will reopen for continuous sale and repurchase on November 30, 2022.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 1,000/- 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.