Publish Date:
Nippon India Mutual Fund has launched an open-ended Target Maturity Exchange Traded SDL Fund - Nippon India ETF Nifty SDL-2026 Maturity.
The scheme will be predominantly investing in the constituents of Nifty SDL Apr 2026 Top 20 Equal Weight 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 Nifty SDL Apr 2026 Top 20 Equal Weight 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.
Nippon India ETF Nifty SDL-2026 Maturity is mandated to invest 95% to 100% of its net assets in State Development Loans (SDLs) representing Nifty SDL Apr 2026 Top 20 Equal Weight Index.
It can invest 0% to 5% of the net assets in Money Market instruments (Treasury Bills, Government Securities and Tri-Party Repos Only).
Nippon India ETF Nifty SDL-2026 Maturity is a passively managed exchange traded fund which will employ an investment approach designed to track the performance of Nifty SDL Apr 2026 Top 20 Equal Weight Index.
As per the Scheme Information Document, the Scheme will follow Buy and Hold investment strategy in which existing SDLs 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 in the Scheme portfolio, the reinvestment will be in line with the index methodology.
The fund is ideal for those investors who would like to participate in the Indian state government loans market by passively investing in SDLs as represented by the Nifty SDL Apr 2026 Top 20 Equal Weight Index.
Nippon India ETF Nifty SDL-2026 Maturity’s performance will be benchmarked against Nifty SDL Apr 2026 Top 20 Equal Weight Index.
The fund will be managed by Mr Vivek Sharma and Mr Siddharth Deb.
The NFO opens for subscription on March 15, 2021, and closes on March 19, 2021. The scheme will reopen for continuous sale and repurchase not later than April 06, 2021.
The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.