IDFC Mutual Fund has launched two target maturity funds - IDFC Gilt 2027 Index Fund and IDFC Gilt 2028 Index Fund.
Both are open ended funds which will invest in government securities and treasury bills that constitute the CRISIL Gilt 2027 Index and Gilt 2028 Index, respectively.
Target maturity funds have a defined maturity date. Upon maturity, the proceeds will be paid to unitholders based on prevailing NAV.
In a press release, Vishal Kapoor, CEO, IDFC MF said, “The IDFC Gilt 2027 Index Fund and IDFC Gilt 2028 Index Fund are ideally suited for investors seeking high quality investments with a matching investment time horizon. The funds are positioned with an aim to benefit from the current steep yield-curve and we believe that 6 year and 7 year government securities are relatively attractive versus ultra-short tenor securities and corporate bonds.”
