NFO: SBI CPSE Bond Plus SDL Sep 2026 50:50 Index Fund

By Morningstar |  03-01-22 | 

SBI Mutual Fund today announced the launch of SBI CPSE Bond Plus SDL Sep 2026 50:50 Index Fund, an open-ended target maturity index fund investing in constituents of Nifty CPSE Bond Plus SDL Sep 2026 50:50 Index. The new fund offer opens on January 3, 2022, and closes on January 17, 2022.

The investment objective of the scheme is to provide returns that closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error.

Rajeev Radhakrishnan, CIO - Fixed Income, said “The fund provides an opportunity to gain exposure in CPSE Bonds & SDL, with an added benefit of liquidity. The scheme has a pre-defined maturity of September 30, 2026, enabling the scheme to invest in securities maturing around the maturity date of the scheme. Thus, minimizing reinvestment risk. The duration of the underlying portfolio reduces as the scheme nears maturity, given that the scheme would follow a defined maturity investment i.e., September 2026. Therefore, if held till maturity, there is minimal duration risk associated with the investment. ”

The scheme would invest between 95 - 100 % investment in securities covered by Nifty CPSE Bond Plus SDL Sep 2026 50:50 Index. It can also invest up to 5 % in government securities maturing on or before the maturity date of the scheme, money market instruments including triparty repo and units of liquid mutual fund.

The minimum application amount (during the NFO period) required is Rs 5,000. Dinesh Ahuja is the fund manager of the scheme.

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