IDFC Mutual Fund launches innovative target maturity Gilt Index Funds. IDFC Mutual Fund announced the launch of two innovative fixed income funds – the IDFC Gilt 2027 Index Fund and the IDFC Gilt 2028 Index Fund. Both funds are open-ended Target Maturity Index Funds which will invest in government securities and treasury bills that constitute the CRISIL Gilt 2027 Index and Gilt 2028 Index respectively. The New Fund Offer (NFO) opens on Friday, March 12, 2021 and closes on Friday, March 19, 2021.
Target Maturity Funds have a defined maturity date, unlike regular open-end mutual funds that remain open indefinitely. Upon maturity, the net asset value of these funds will be paid back to unitholders. Additionally, IDFC’s Gilt Index Funds will invest only in sovereign rated instruments – which are guaranteed by the Government of India thereby reducing any credit risk. These funds will also steadily reduce the residual maturity of investments over the holding period, thereby reducing duration risk or the fund’s sensitivity to a change in interest rates.
Both funds are open-ended and will offer a daily purchase and redemption facility. The minimum investment amount is Rs. 5,000, and there will be no exit load on redemptions. The IDFC Gilt 2027 Index Fund will mature on June 30, 2027, and the IDFC Gilt 2028 Index Fund will mature on April 05, 2028.
Established in 2000, IDFC AMC is one of India’s Top 10 asset managers with an average AUM of around Rs. 1,20,000 crores at the end of December 2020, across 57 Mutual Fund schemes. It has an experienced investment team with a deep on-the-ground presence in over 46 cities, and investors across over 250 cities and towns in India. IDFC AMC is focused on helping savers become investors and create wealth.
To support this objective, the AMC offers a range of prudently constructed investment products – across
equities, fixed income and liquid alternatives – that aim to provide performance consistent with their
well-defined objectives. For more information, log on to:
Corporate Website: www.idfcamc.com