An open-ended target maturity index fund which will predominantly invest in Public Sector Unit (PSU) and state government bonds.
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What is a bond? |
Investment objective
The scheme’s objective is to track NIFTY PSU Bond Plus SDL Apr 2027 50:50 Index by investing in top (AAA) rated PSU bonds and state development loans (SDLs). This index measures the performance of AAA rated PSU bonds and SDLs maturing on April 30 2027. The constituents of the index include bonds of government-owned entities such as the Indian Railway Finance corporation, Power Grid and NHPC as well as state governments like Uttar Pradesh and Kerala.
As the scheme will invest in these highly safe bonds, investors will get stable returns with transparency. Also, there isn’t any lock-in period for buying or selling the units of this scheme. At the same time, the scheme is more efficient than other traditional investments and since it’s passively managed, the expense ratio is relatively lower. The fund has mentioned an indicative yield-to-maturity of 6.18%.
This scheme is suitable for investors who are seeking to generate stable returns over the long run.
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Asset allocation
| Instrument | Allocation (% of total assets) | Risk profile | |
| Minimum | Maximum | ||
| Bonds issued by PSUs forming part of the bonds portion of Nifty PSU Bond Plus SDL Apr 2027
State Development Loans (SDLs) forming part of the SDL portion of Nifty PSU Bond Plus SDL Apr 2027 50:50 Index |
95 | 100 | Low to Medium |
| Money market instruments including cash and cash equivalents | 0 | 5 | Low |
Scheme details
| Name | Edelweiss Nifty PSU Bond Plus SDL Index Fund – 2027 |
| Type | An open-ended target maturity index fund predominantly investing in the constituents of Nifty PSU Bond Plus SDL Apr 2027 50:50 Index |
| Category | Debt-Index fund |
| Benchmark | Nifty PSU Bond Plus SDL Apr 2027 50:50 Index |
| Entry/exit load | Entry: Nil Exit Load: Up to 30 days: 0.15% After 30 days: Nil |
| Fund Manager | Mr Dhawal Dalal Mr Gautam Kaul |
| Minimum application amount | ₹5,000 and in multiples of ₹1. |
| Expense ratio | Up to 1% |
Click here to invest in this NFO
Click here to invest in this NFO
| This product is suitable for investors who are seeking*: | Riskometer |
| - Income over long term -An open-ended target maturity index fund that seeks to track Nifty PSU Bond Plus SDL Apr 2027 50:50 Index |
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*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Note: The above information has been sourced from the Scheme Information Document provided by Edelweiss Asset Management Company. To read the entire document, click here.
Disclaimer: The above article is purely academic in nature and aims to provide knowledge about basic trading concepts & should not be construed as an opinion or advice to invest or trade. RKSV Securities India Private Limited (brand name Upstox) is the distributor of the mutual fund. Mutual fund investments are subject to market risks; please read all the related documents and/or consult your investment advisor before investing. Past performance of an investment asset does not guarantee future returns.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
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