Nippon India Nifty SDL Plus G-Sec – Jun 2029 Maturity 70:30 Index Fund to open for subscription on February 6

Date : 03/02/2023
Read: 2 mins

The NFO begins on February 6, 2023, and ends on February 14, 2023.

Nippon India Mutual Fund has launched Nippon India Nifty SDL Plus G-Sec – Jun 2029 Maturity 70:30 Index Fund. It is a Target Maturity Index Fund and is open-ended. It has a relatively low credit and high-interest rate risk. The NFO (New Fund Offer) begins on February 6, 2023, and ends on February 14, 2023. Siddharth Deb and Vivek Sharma will manage the scheme.

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Plans

The Nippon India Nifty SDL Plus G-Sec – Jun 2029 Maturity 70:30 Index Fund will track the Nifty SDL Plus G-Sec Jun 2029 70:30 Index. You must invest at least Rs. 1,000 and then in Rs. 1 multiples. The Nifty SDL Plus G-Sec Jun 2029 70:30 Index Fund will have a Direct and Regular plan. Both plans will offer the growth option. They will also offer IDCW (income distribution cum capital withdrawal) options. The maturity date of the index is June 29, 2029, and therefore has a maturity date already defined.

Objective

Its press release said that the scheme's objective is to provide returns similar to the securities' total returns before expenses represented by the Nifty SDL Plus G-Sec Jun 2029 70:30 Index. The Nifty SDL Plus G-Sec Jun 2029 70:30 Index Fund will invest in Government Securities (G-Secs) and State Development Loans (SDLs) with maximum safety. Out of which, 95%-100% will be invested in State Development Loans, which represents the Nifty SDL Plus G-Sec Jun 2029 70:30 Index's SDL portion and Nifty SDL Plus G-Sec Jun 2029 70:30 Index's Government Securities which represent the G-Sec portion.

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Conclusion

Nippon India Nifty SDL Plus G-Sec – Jun 2029 Maturity 70:30 Index Fund might also invest in instruments in the money market and will follow a passive management strategy to generate benchmark returns. It will use a Buy and Hold strategy and hold the existing G-Secs and SDLs till maturity. It will also let non-demat holders get exposed to passive debt funds through investing in the fund.