scorecardresearchNFO Alert: HDFC Nifty G-Sec Jun 2036 Index Fund; all you need to know

NFO Alert: HDFC Nifty G-Sec Jun 2036 Index Fund; all you need to know

Updated: 28 Feb 2023, 10:09 AM IST
TL;DR.

The scheme opened for public subscription on February 27, 2023, and will close on March 08, 2023.

HDFC Mutual Fund announced the launch of the HDFC Nifty G-Sec Jun 2036 Index Fund.

HDFC Mutual Fund announced the launch of the HDFC Nifty G-Sec Jun 2036 Index Fund.

HDFC Mutual Fund announced the launch of the HDFC Nifty G-Sec Jun 2036 Index Fund, an open-ended income fund investing in the NIFTY G-sec Jun 2036 Index constituents. The scheme opened for public subscription on February 27, 2023, and will close on March 08, 2023.

Q. What kind of mutual fund scheme is this?

This kind of target maturity scheme aims to generate returns commensurate with the performance of the NIFTY G-Sec Jun 2036 Index. 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 scheme's investment objective is to generate returns through a portfolio of debt and money market instruments maturing on or before the scheme's maturity. However, the scheme does not guarantee/indicate any return. There is no assurance that the scheme’s objective will be achieved. This open-ended debt scheme contains relatively high-interest rate risk and relatively low credit risk.

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 any amount thereafter. Investors can purchase additional units for 100/- and any amount thereafter. The scheme offers a Regular Plan and Direct Plan. Each plan offers the Growth Option only.

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 bills95100Low to Medium
Money Market Instruments and Units of liquid and debt mutual fund schemes05Low to Medium

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 Yield to Date (in %)
HDFC Nifty G-Sec Dec 2026 Index Fund0.76
Aditya Birla Sun Life Crisil IBX Gilt - April 2029 Index Fund 0.75
Axis CRISIL IBX 70:30 CPSE Plus SDL April 2025 Index Fund0.69
Nippon India Nifty SDL Plus G-Sec - Jun 2028 Maturity 70:30 Index Fund0.68
DSP Nifty SDL Plus G-Sec Jun 2028 30:70 Index Fund0.63
IDFC Gilt 2028 Index Fund0.55
SBI CPSE Bond Plus SDL Sep 2026 50:50 Index Fund0.50
Kotak Nifty SDL Jul 2026 Index Fund0.49
Edelweiss CRISIL IBX 50:50 Gilt Plus SDL June 2027 Index Fund0.48
Source: MoneyControl

Q. How will the scheme benchmark its performance?

The performance of the scheme is measured against the NIFTY G-sec Jun 2036 Index. The scheme will invest in the constituents of the underlying index.

Q. Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” is also “Zero”. 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 shall be levied.

Q. Who will manage this scheme?

Vikash Agarwal is the fund manager for the scheme

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 they doubt whether the product is suitable for them.

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First Published: 28 Feb 2023, 10:09 AM IST