Nippon India AMC has launched Nippon India ETF Nifty CPSE Bond Plus SDL – 2024 Maturity. This open ended ETF fund will predominantly invest in constituents of Nifty CPSE Bond Plus SDL September 2024 50:50 Index.
The fund house says the fund is a combination of FMP and ETF as it has a fixed maturity of 2024 as well as flexible ETF structure.
Vishal Jain, Head ETF, Nippon Life India MF, said “A very unique proposition for investors as it combines the benefit of an FMP which has a fixed maturity but at the same time the ETF structure allows investors to subscribe/redeem during the life of the product either directly with the fund in a pre-defined lot size or as small as 1 unit on the NSE.”
The fund will follow the Nifty CPSE Bond Plus SDL Sep 2024 50:50 Index and has a fixed maturity period of 4 years. The index represents AAA rated CPSE bonds and State Development Loans (SDLs). Proportion of investments (CPSE bonds and SDLs) will be equally divided i.e. 50% in each category at the time of index launch.
The minimum investment required during NFO is Rs.5,000.
Commenting on the launch of NFO, Amit Tripathi, CIO - Fixed Income, Nippon Life India MF said, "Nippon India ETF Nifty CPSE Bond Plus SDL 2024 adds to our bouquet of fixed income passive investment options. Target maturity based product with 3 to 4 years rolldown strategy through a relatively high grade and liquid portfolio makes this an attractive investment option for all category of fixed income investors. The current steepness in the yield curve adds to the appeal of this fund at the current juncture."
