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IDFC Mutual Fund has launched two target maturity index funds - IDFC CRISIL IBX 90:10 SDL Plus Gilt– November 2026 Index Fund and IDFC CRISIL IBX 90:10 SDL Plus Gilt– April 2032 Index Fund.
These open-ended target maturity index funds will invest in constituents of CRISIL IBX 90:10 SDL plus Gilt Index– November 2026 and CRISIL IBX 90:10 SDL plus Gilt Index– April 2032, respectively.
While the NFO of IDFC CRISIL IBX 90:10 SDL Plus Gilt– November 2026 Index Fund opens on November 14 and closes on November 16, 2022, IDFC CRISIL IBX 90:10 SDL Plus Gilt– April 2032 Index Fund NFO opens on November 14 and closes on November 28.
In a press release, Vishal Kapoor, CEO, IDFC MF said, “On an absolute level, the 10-year and 5-year SDL yields have moved up in the last few months and stand at 7.94% and 7.74% as on October 2022, providing a compelling opportunity for investors. Additionally, these debt instruments provide the benefit of an implicit sovereign guarantee, thereby reducing any risk of default.”
Gautam Kaul, Fund Manager, said, “The SDL strategy provides a relatively higher yield compared to G-Sec and PSU AAA bonds. Given the upward yield shift in the 3–5 year and 10-year maturity bucket, we believe these funds could provide an attractive investment opportunity.”
