Nippon Nifty Long Term Gilt ETF

About Nippon India Etf Nifty 8-13 Yr G-sec Long Term Gilt

• Nippon India ETF Nifty 8-13 yr G-Sec Long Term Gilt is an open-ended scheme belonging to Nippon India Mutual Fund House.
• The scheme invests in bonds issued by the Government of India.
• Pranay Sinha and Siddarth Deb are the fund managers for the scheme.
• Launched on July 5, 2016, the ETF is listed on the NSE exchange.
• The Assets Under Management (AUM) of Nippon India ETF Nifty 8-13 yr G-Sec Long Term Gilt stood at ₹1,811 crore as of June 30, 2024.
• The ETF units can be bought directly using a demat account with a registered broker.
• The UTF units can be bought and sold at the prevailing price during the usual market hours.

Investment Objective and Benchmark

• The scheme aims to provide investment returns that closely correspond to the total returns of the securities as represented by the underlying index.
• The ETF is benchmarked against the Nifty 8-13 yr G-Sec Index.
• The index provides a broad representation of government bonds with a maturity of around 10 years, capturing the performance of the most liquid bonds with maturities between 8-13 years.
• The ETF employs a passive investment approach, investing in securities constituting the Nifty 8-13 yr G-Sec Index in the same proportion as in the Index.
• The scheme invests in securities that are constituents of the Nifty 8-13 yr G-Sec Index and may also invest in money market instruments to meet liquidity and expense requirements.
• Since the ETF invests in bonds issued by the Government of India, it is considered a safer investment than schemes that invest in other bond types.
• A moderate-risk investment instrument, the ETF is suited for investors looking for income over long term.

Asset Allocation & Portfolio Composition

• The asset allocation of the fund comprises around 95%-100% in securities constituting the Nifty 8-13 yr G-Sec Index and 0-5% in money market instruments (with maturity not exceeding 91 days).
• As of May 31, 2024, Government Securities comprised 97.36% of the scheme’s assets.

Nifty 8-13 yr G-Sec Index + ETF holdings

• Government of India - 97.36%
• Clearing Corporation of India Ltd - 0.36%

The scheme has delivered a return of 7.43% in the last year as of June 28, 2024, against the benchmark returns of 7.58%.

Since its inception, the ETF has delivered a CAGR of 6.72%.