Kotak Mahindra Mutual Fund has launched an open-ended target maturity index fund - Kotak Nifty SDL April 2032 Top 12 Equal Weight Index Fund.
The new fund will invest in State Development Loans (SDLs) issued by the state governments and union territories that form part of Nifty SDL Apr 2032 Top 12 Equal Weight Index.
In order to meet the liquidity requirements of the scheme, a small portion of the corpus will also be invested in commercial papers, certificate of deposits, treasury bills, etc.
In a press release, Lakshmi Iyer, CIO-Debt & Head of Products at Kotak Mahindra MF said, "India's debt market has been growing in size over the past few years and investors, especially retail participants, can own a pie of state debt through this launch. This will also help investors to diversify their investments and get the carry advantage via sovereign ownership."
