Earlier this year in March, Edelweiss AMC launched India’s first fixed income index fund – Edelweiss Nifty PSU Bond Plus SDL Index Fund – 2026 – with a target maturity structure and reached an AUM of over Rs 3,000 crore in less than six months. According to the fund house, the total AUM of Target Maturity Index Funds/ETFs managed by Edelweiss AMC is almost Rs 40,000 crore as on 22nd September 2021.
According to the press release, the fund will have a defined maturity date of 30th April 2027. At maturity, investors will get back their investment proceeds. 100% of the fund’s proceeds are invested in AAA CPSE instruments and State Development Loans. The proceeds will be taxed at 20% post-indexation.
This open-ended Target Maturity Index Fund will predominantly invest in the constituents of NIFTY PSU Bond Plus SDL April 2027 50:50 Index. The Proportion of investments of AAA PSU Bonds and SDLs will be equally divided with a weightage of 50% each. Exposure to any single company’s bonds or loans would be capped at 15% of the corpus. Subsequently, there will be a quarterly rebalancing and review of the index constituents.
