The mutual fund sector is like a big buffet meal where there are eclectic cuisines on offer for all and sundry. One can, therefore, choose and constitute multiple combinations of equity, debt and hybrid schemes based on their own preferences and financial goals.
Recently, IDFC Mutual Fund launched a plan to align with a debt benchmark index i.e. Crisil IBX 90:10 SDL Plus Gilt-April 2032 Index Fund. Here, we share more details on the scheme in case you want to explore the idea of adding this to your portfolio. The scheme will invest in constituents of Crisil IBX 90:10 SDL Plus Gilt-April 2032 Index.
The new fund offer (NFO) opened on November 14 and will close on November 28. This is a scheme with relatively high interest rate risk and relatively low credit risk.
The scheme has both regular and direct plans. Both plans will have separate Net Asset Value (NAV) and a common portfolio. Both plans will have the options of growth and income distribution cum capital withdrawal (IDCW).
The scheme will re-open for ongoing subscription and redemption within five business days from the date of allotment of units.
About the index: The index Crisil IBX 90:10 SDL Plus Gilt-April 2032 entails two G-Secs and eight state development loans (SDL).
These include 6.54 percent GS 2032, 6.68 percent GS 2032, Tamil Nadu SDL, Uttar Pradesh SDL, Andhra SDL, Rajasthan SDL, Karnataka SDL, Gujarat SDL, Maharashtra SDL and West Bengal SDL. It is worth noting that barring one G-Sec expiring in 2031, all other debt instruments are set to expire in 2032.
Minimum application amount: An investor must make a minimum investment of ₹5,000 and in multiples of Re 1 thereafter. Investors can invest via systematic investment plan with a minimum amount of ₹1,000 with a minimum of six instalments.
There is an option of switching as well. During the NFO period, the unit holders holding Units in non-demat form will be able to invest in the NFO of the Scheme by switching part or all of their Unit holdings held in an existing scheme run by IDFC Mutual Fund.
|Scheme opened||Nov 14|
|Scheme to close||Nov 28|
|Index||Crisil IBX 90:10 SDL Plus Gilt Index-April 2032|
|Maturity date||April 5, 2032|
|Min application (SIP)||₹1,000 with a minimum of 6 instalments|
The minimum target amount of the scheme is ₹10 crore and will be managed by fund managers Gautam Kaul and Harshal Joshi.
Portfolio allocation: The state development loans that constitute part of the index fund will comprise 95-100 percent of the overall portfolio, while the remaining 0-5 percent will be cash and money market instruments.
About maturity: The scheme will mature on April 5, 2032. On the maturity date, the units of the scheme will be redeemed at the NAV applicable on the maturity date.