ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential PSU Bond plus SDL 40:60 Index Fund -– Sep 2027, a target maturity index scheme investing in the constituents of Nifty PSU Bond Plus SDL Bond Sep 2027 40:60 Index.
The offering aims to provide returns that closely correspond to the total return of the underlying index, subject to tracking errors.
The new fund offer opens September 16, 2021, and closes on September 27, 2021.
In the portfolio, the proportion of investment into AAA rated bonds issued by government owned entities and SDLs will be in the ratio of 40:60. The bonds which will be a part of this portfolio will be maturing during the six month period ending September 30, 2027.
The index will be reviewed every quarter and the weights of each issuer in the index will be capped at 15 percent.
Speaking on the launch of the product, Chintan Haria, Head- Product Development & Strategy, ICICI Prudential AMC said, “ICICI Prudential PSU Bond plus SDL Bond Sep 2027 40:60 Index is a target maturity open ended fund which provides investors exposure to a portfolio of 8 PSU bonds issued by government owned entities and 20 SDLs issued by States/UTs. This is suitable for investors seeking exposure to a fixed income instrument and for investors having a medium-term investment horizon in line with the index’s maturity period.”
Investors can consider this offering as a part of their debt allocation in the portfolio given its ability to generate better returns on a gross basis and tax efficiency.
The Nifty PSU Bond Plus SDL Bond Sep 2027 40:60 Index seeks to measure the performance of portfolio of AAA rated bonds issued by government owned entities and SDLs maturing during the six-month period ending September 30, 2027. The weights of each issuer in the index are capped at 15 percent
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