Nippon India Mutual Fund Introduces Nippon India ETF Nifty CPSE Bond Plus SDL-2024 Maturity
   Nov 03, 2020

Nippon India Mutual Fund has launched a new scheme - Nippon India ETF Nifty CPSE Bond Plus SDL-2024 Maturity.

It is an open-ended Target Maturity Exchange Traded CPSE Bond Plus SDL Fund predominately investing in constituents of Nifty CPSE Bond Plus SDL Sep 2024 50:50 Index.

Accordingly, the investment objective of the scheme is to provide investment returns closely corresponding to the total returns of the securities as represented by the Nifty CPSE Bond Plus SDL Sep 2024 50:50 Index before expenses, subject to tracking errors. However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.

The Nifty CPSE Bond Plus SDL Sep 2024 50:50 Index seeks to measure the performance of portfolio of:

  • AAA rated bonds issued by Government owned entities, and

  • State Development Loans (SDLs)

  • Maturing between October 01, 2023 to September 30, 2024

The proportion of investment into AAA rated bonds issued by government owned entities and SDLs will be equally divided i.e. 50% in each category at the time of index launch.

Under normal circumstances the scheme will invest at 95% to 100% of its assets in Bonds issued by CPSEs/CPSUs/CPFIs and other Government organizations representing the bonds portion of Nifty CPSE Bond Plus SDL Sep 2024 50:50 Index; along with State Development Loans (SDLs) representing the SDL portion of Nifty CPSE Bond Plus SDL Sep 2024 50:50 Index.

The scheme will follow Buy and Hold investment strategy in which existing bond and SDLs will be held till maturity. It will mature in line with the maturity of the index. Notably, the Index shall mature on September 30, 2024.

The scheme can invest up to 5% of its assets in Money market instruments (Treasury Bills, Government Securities and Tri-Party Repos Only).

As the scheme would predominantly invest into AAA rated bonds issued by Government owned entities and State Development Loans (SDLs) which are considered as a quasi-Government securities, it is relatively safe as compared to other aggressive Debt funds taking higher credit risk of instruments issued by private issuers.

Nippon India ETF Nifty CPSE Bond Plus SDL-2024 Maturity will be managed by Mr Prashant Pimple.

Its performance will be benchmarked against Nifty CPSE Bond Plus SDL Sep 2024 50:50 Index.

The NFO opens for subscription on November 03, 2020 and closes on November 09, 2020.

The face value of each unit of the scheme will be Rs.10/-. On allotment, the value of each Unit would be approximately equal to the value of 1/10th of the value of Nifty CPSE Bond Plus SDL Sep 2024 50:50 Index.

The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

The NFO Units offered pursuant to the NFO, to be listed on NSE within 5 working days from the date of allotment.

 

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