HDFC Mutual Fund announced the launch of the HDFC Nifty SDL Oct 2026 Index Fund, an open-ended target maturity scheme replicating/tracking the Nifty SDL Oct 2026 Index. The scheme opened for public subscription on February 16, 2023 and will close on February 22, 2023. The scheme will re-open for continuous sale and repurchase within five business days from the date of allotment of units under the new fund offer (NFO).
Q. What kind of mutual fund scheme is this?
This is a kind of debt fund instrument that aims to generate returns that are commensurate with the performance of the Nifty SDL Oct 2026 Index, subject to tracking differences over the long term. However, there is no assurance that the scheme’s investment objective will be realized.
Q. What is the main objective of investing in this fund?
The investment objective of the scheme is to earn returns from investments in Government Securities/SDL, TREPS on Government Securities/Treasury bills. This open-ended fund is of relatively high interest rate risk and relatively low credit risk. Under normal circumstances, the asset allocation (% of Net Assets) of the scheme's portfolio will be as follows:
| Types of Instruments | Minimum Allocation (% of Total Assets) | Maximum Allocation (% of Total Assets) | Risk Profile |
| Government Securities/SDL, TREPS on Government Securities/Treasury bills | 95 | 100 | Low to Medium |
| Money Market Instruments and units of liquid and debt mutual fund schemes | 0 | 5 | Low to Medium |
Q. How may one invest in this fund?
The scheme offers units of Rs. 10 each. Investors can invest under the scheme with a minimum investment of ₹100 and in multiples of Re 1, thereafter. The scheme offers a Regular Plan and Direct Plan. Each plan offers Growth Option only though the fund house reserves the right to introduce further options as and when deemed fit.
Q. Are there similar mutual funds in the market?
Many asset management companies have launched such funds in the past. Some of them include:
| Name of the fund | Returns since inception (in %) |
| Aditya Birla Sun Life CRISIL IBX AAA Mar 2024 Index Fund | 5.8 |
| Aditya Birla Sun Life CRISIL IBX SDL Jun 2032 Index Fund | 0.16 |
| Axis CRISIL IBX 50:50 Gilt Plus SDL Jun 2028 Index Fund | 0.87 |
| Baroda BNP Paribas Nifty SDL December 2026 Index Fund | 4.13 |
| DSP CRISIL SDL Plus G-Sec Apr 2033 50:50 Index Fund | 12.50 |
| DSP Nifty SDL Plus G-Sec Sep 2027 50:50 Index Fund | 5.63 |
| Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund | 0 |
| IDFC Crisil IBX Gilt April 2032 Index Fund | 0 |
| UTI CRISIL SDL Maturity June 2027 Index Fund | 3.40 |
| Source: ET Money | |
Q. How will the scheme benchmark its performance?
The performance of the scheme is measured against the Nifty SDL Oct 2026 Index. The scheme will invest in the constituents of the underlying index as per the allocation table and as permitted by SEBI from time to time. Thus, the said benchmark is most suited for comparing the performance of the scheme.
Q. Are there any entry or exit loads to this scheme?
Both the “Entry Load” and “Exit Load” to this scheme are Nil. Apart, no Entry/Exit Load would be levied on bonus units. In respect of Systematic Transactions such as SIP, GSIP, STP, Flex STP, Swing STP, and Exit Load, if any, prevailing on the date of registration/enrolment will be levied. However, the fund house reserves the right to change/modify load structure and other terms and conditions under the SIP prospectively at a future date.
Q. Who will manage this scheme?
Vikash Agarwal will be managing the investments in this fund.
Q. Does the fund contain any inherent risk?
The scheme involves “Moderate Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be at moderate risk. However, investors should consult their financial advisors, if in doubt about whether the product is suitable for them.
