Mirae Asset Mutual Fund recently rolled out two new fund offers (NFOs) for target maturity funds. The first mutual fund scheme is Mirae Asset Nifty AAA PSU Bond Plus SDL Apr 2026 50:50 index fund, while the second one is Mirae Asset CRISIL IBX Gilt Index – April 2033 Index Fund.
Target maturity funds aim to offer good returns to investors based the prevailing yield at the time of investment so long as they stay till fund's maturity. These funds have no lock-in just as fixed maturity plans (FMPs).
While wooing the investors, the AMC states that investors can explore target maturity funds for their predictable returns, no lock-in, low cost, flexibility to transact anytime or hold till maturity and completely transparent portfolio.
The fund manager for the schemes will be Mahendra Jajoo. The fund schemes were launched on October 10, and will close on October 18.
The minimum investment for investing in these fund schemes is ₹5,000 and minimum additional investment is ₹1,000. As per the scheme risk-o-meter, the investor’s capital will be at moderate risk in both these schemes.
Investors can choose either of regular or direct plans which are available in two options a) growth and b) income distribution cum capital withdrawal (IDCW).
Nifty AAA PSU Bond Plus SDL index fund
The scheme would invest in bonds issued by AAA rated Public Sector Undertaking (PSU) and State Development Loans (SDLs) representing Nifty AAA PSU Bond Plus SDL Apr 2026 50:50 Index.
The allotment date for the scheme is October 20.
The Scheme will follow buy and hold investment strategy in which existing AAA rated Public Sector Undertaking (PSU) and SDLs will be held till maturity unless sold for meeting redemptions requirement.
Scheme may also invest in money market instruments, in compliance with regulations. Money market instruments will include only treasury bills and government securities having a residual maturity up to one year, Tri-party Repo on government securities or T-bills and any other like instruments as specified by the RBI from time to time.
CRISIL IBX Gilt Index fund
The scheme would invest in Government Securities (G-Secs) representing CRISIL IBX Gilt Index – April 2033.
The scheme’s allotment date is October 20.
Just as the other fund scheme mentioned above, this fund may also invest in money market instruments, in accordance with the regulations. Money market instruments will include only treasury bills and government securities having a residual maturity up to one year, tri-party repo on government securities or T-bills and any other like instruments as specified by the Reserve Bank of India from time to time.