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NEW DELHI: Asset management companies ICICI Prudential Mutual Fund and Aditya Birla Sun Life AMC have launched new fund offers (NFOs) for PSU bond index schemes.

ICICI Prudential PSU Bond plus SDL 40:60 Index Fund - Sep 2027, a target maturity index scheme will invest in the constituents of Nifty PSU Bond Plus SDL Bond Sep 2027 40:60 Index.

On the other hand, Aditya Birla Sun Life Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund is an open-ended scheme tracking the Nifty SDL Plus PSU Bond Sep 2026 60:40 Index.

While ICICI Pru’s scheme will run from 16-27 September, ABSL MF’s NFO will open on 15 September and close on 23 September.

Here are the details of both the funds:

ICICI Prudential PSU Bond plus SDL 40:60 Index Fund

The Nifty PSU Bond Plus SDL Bond Sep 2027 40:60 index seeks to measure the performance of a portfolio of AAA-rated bonds issued by government-owned entities and state development loans (SDLs) maturing during the six-month period ending 30 September 2027. The weights of each issuer in the index are capped at 15%.

The minimum investment required during the NFO period is 1,000, and in multiples of Re 1, thereafter.

Speaking on the launch, Chintan Haria, head-product development, and strategy, ICICI Prudential AMC, said, “The index is a target maturity open-ended fund which provides investors exposure to a portfolio of 8 PSU bonds issued by government-owned entities and 20 SDLs issued by States/UTs. This is suitable for investors seeking exposure to a fixed income instrument and for investors having a medium-term investment horizon in line with the index’s maturity period."

ABSL Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund

The fund has a defined maturity date with a target maturity of 30 September 2026, with a diversified portfolio of AAA-rated PSU Bonds and SDLs maturing on or before scheme maturity.

The portfolio index will comprise 60% SDLs of top 10 states/Union Territories and 40% of the top 10 AAA-rated PSU bonds curated based on credit quality and liquidity scores.

The scheme will look to hold bonds till their maturity to provide stable and predictable returns. Subsequently, there will be a quarterly rebalancing and review of the index constituents.

A. Balasubramanian, MD and CEO, Aditya Birla Sun Life AMC said" “The passive debt product combines the simplicity of traditional savings instruments with the predictability of returns, quality portfolio of State Government bonds and AAA-rated PSU bonds, target maturity period and the flexibility of an open-ended scheme, better liquidity and tax benefits."

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