Edelweiss Asset Management Limited, one of India's fastest growing AMCs, has announced the launch of 1 new Target Maturity Index Fund Edelweiss CRISIL IBX 50:50 Gilt Plus SDL September 2028 Index Fund. This fund will invest in a mix of Indian Government Bonds (IGBs) and State Development Loans (SDLs).
"Target Maturity Index Funds are one of the prudent fixed income options for investors to lock in investments at current yields. With the successful launch of various debt fund options including target maturity funds over the past two years, we are now the largest player managing long-term fixed income money for investors. Our aim is to provide a wide range of fixed income options for investors with steady returns while investing in highest rated debt instruments" said Radhika Gupta, MD & CEO, Edelweiss Asset Management Limited.
The Edelweiss CRISIL IBX 50:50 Gilt Plus SDL September 2028 Index Fund will be open for subscription between 1st to 7th November 2022. The scheme is open-ended target maturity Index Fund investing in the constituents of CRISIL IBX 50:50 Gilt Plus SDL Index - Sep 2028.
Post the success of Edelweiss AMC Bharat Bond ETF, a total of 30 target maturity funds has been launched since 2019 by 11 different AMCs with their AUM crossing Rs. 1.15 Lakh crores (as on 30th September 2022).* Edelweiss AMC is a leader in the Passive Debt Category and has reached an AUM of more than Rs. 60,000 Crores (as on 30th September 2022) in a little over 2 years. This is more than 52% of the total industry's AUM with 10 different target maturity offerings.
The fund will come with an investment amount that is as low as Rs.5000/-, the fund will have a defined maturity date of Edelweiss CRISIL IBX 50:50 Gilt Plus SDL September 2028 Index Fund. The Scheme will follow a Buy & Hold investment strategy in which existing bonds will be held until maturity unless sold for meeting redemptions, dividend payment rebalancing requirements or optimizing the portfolio construction process. The portfolio of eligible securities invested by the Scheme will have, in aggregate, similar quantitative characteristics like that of the underlying index.
Target maturity ETFs and index funds are open-ended debt funds with a specified maturity date that aligns with the expiry date of the bonds they have in their portfolios. These funds are simple and transparent investment vehicles that allow investors to have liquidity, stability, and predictability of returns along with lower tax compared to traditional instruments like fixed deposits. The funds invest only in constituents that are eligible as per the index methodology and investment objective of the schemes.