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Home / Mutual Funds / News /  Edelweiss AMC launches Nifty PSU bond plus SDL index fund. Details here

Edelweiss AMC launches Nifty PSU bond plus SDL index fund. Details here

Sebi has now defined 10 categories of equity funds, 16 categories of debt funds, six categories of hybrid funds, two categories of solutions-based funds and one category each for index funds/ETF and FOF. Photo: iStock (iStock)Premium
Sebi has now defined 10 categories of equity funds, 16 categories of debt funds, six categories of hybrid funds, two categories of solutions-based funds and one category each for index funds/ETF and FOF. Photo: iStock (iStock)

  • With an investment amount that is as low as 5,000, the fund will mature on April 30, 2026
  • Taxed at 20% post indexation, this fund will be more tax-efficient as compared to traditional avenues

Edelweiss Asset Management Company Limited has recently launched Nifty PSU Bond Plus SDL Index Fund - 2026. This passively managed fund will invest in AAA-rated PSU Bonds as well as state development loans.

Radhika Gupta, CEO, Edelweiss Mutual Fund, said, "Post the success we’ve seen with corporate bond ETFs with the launch of Bharat Bond last year, it is heartening to now see a significant rise in popularity of target maturity debt funds among investors. Yields have risen in last couple of weeks and this is a good time to invest in a target maturity fund and lock-in investments at higher yields."

 Here are the key things to know about the fund

  • With an investment amount that is as low as 5,000, the fund will mature on April 30, 2026.
  • At maturity, investors will get back their investment proceeds.
  • The fund will aim to hold the bonds till maturity in order to provide stability and visibility of returns to investors.
  • Taxed at 20% post indexation, this fund will be more tax-efficient as compared to traditional avenues.

 “This index fund can give a fair amount of visible and tax-efficient returns, along with higher safety and transparency at a low cost. With the financialization of savings taking centre stage, such solutions will build more investor confidence in debt mutual funds,"Gupta said.

She added, "We are committed to launch more such innovative yet simple solutions for our investors."

 This is a first ever, open-ended, Target Maturity Index Fund that will predominantly invest in the constituents of NIFTY PSU Bond Plus SDL 50:50 Index. The proportion of investments in AAA PSU Bonds and SDLs will be equally divided with a weightage of 50% each.

Exposure to any single company’s bonds or loans would be capped at 15% of the corpus. Subsequently, there will be a quarterly rebalancing and review of the index constituents.

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