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Business News/ Money / Personal Finance/  NFO Alert: Mirae Asset Nifty SDL June 2028 Index Fund launched; all you need to know
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NFO Alert: Mirae Asset Nifty SDL June 2028 Index Fund launched; all you need to know

Mirae Asset Mutual Fund announced the launch of the Mirae Asset Nifty SDL June 2028 Index Fund. The scheme opened for public subscription on March 20, 2023, and will close on March 27, 2023.

Mirae Asset Mutual Fund announced the launch of the Mirae Asset Nifty SDL June 2028 Index FundPremium
Mirae Asset Mutual Fund announced the launch of the Mirae Asset Nifty SDL June 2028 Index Fund

Mirae Asset Mutual Fund announced the launch of the Mirae Asset Nifty SDL June 2028 Index Fund, an open-ended index fund scheme tracking the Nifty SDL Jul 2028 Index constituents. The scheme opened for public subscription on March 15, 2023, and will close on March 21, 2023, and will re-open for continuous sale and repurchase on or before: March 31, 2023.

Q. What kind of mutual fund scheme is this?

This is an open-ended target maturity index fund investing in the constituents of the Nifty SDL June 2028 Index. A scheme with relatively high-interest rate risk and relatively low credit risk. However, there is no assurance that the scheme’s investment objective will be realized.

Q. What is the main objective of investing in this fund?

The investment objective of the scheme is to track the Nifty SDL June 2028 Index by investing in State Development Loans (SDLs), maturing on or before June 30, 2028, 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.

Under normal circumstances, the asset allocation of the scheme will be as follows:

Types of InstrumentsIndicative allocation (% of total assets)Risk Profile
MinimumMaximum
State Development Loans (SDLs), Government securities, TREPs on Government Securities, Treasury bills95%100%Low to Medium
Money Market instruments (Treasury Bills, Government Securities and Tri-party Repo on government securities or T-bills Only)0%5%Low to Medium

Q. Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such index funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:

Name of the fundYield to Date (YTD) (in %)
ICICI Prudential Nifty SDL Sep 2026 Index Fund0.66
Axis Nifty SDL September 2026 Debt Index Fund0.70
Aditya Birla Sun Life Crisil IBX AAA Jun 2023 Index Fund1.27
Kotak Nifty SDL Jul 2026 Index Fund0.68
IDFC CRISIL IBX 90:10 SDL Plus Gilt0.70
Source: MoneyControl

Q. How will the scheme benchmark its performance?

The performance of the Mirae Asset Nifty SDL June 2028 Index Fund is benchmarked against the Nifty SDL Jul 2028 Index.

Q. Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load", which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load" will also be “Nil".

Q. Who will manage this scheme?

Mahendra Kumar Jajoo will be the fund manager for the scheme.

Q. Does the fund contain any inherent risk?

The scheme involves “Moderate Risk" as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to moderate risk. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.

We elaborate on the magic of compounding in mutual fund SIPs.
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We elaborate on the magic of compounding in mutual fund SIPs.

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Published: 21 Mar 2023, 08:50 AM IST
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