Nippon India MF to launch fixed maturity ETF on Nov 3

Our Bureau Mumbai | Updated on October 28, 2020

Nippon Life India Asset Management has launched of Nippon India ETF Nifty CPSE Bond Plus SDL – 2024 Maturity. The open-ended target maturity exchange traded fund will invest in constituents of Nifty CPSE Bond and State Development Loans Sept 2024.

The AAA-rated CPSE bonds and SDLs represents the index. Proportion of investments in CPSE Bonds and SDLs will be equally divided in each category at the time of index launch. The new fund offer will be open for investment between November 3 and 9. The minimum investment required during NFO is ₹5,000.

The maturity of the scheme is expected to be less than four years from the date of inception. The scheme endeavors 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.

Amit Tripathi, CIO (Fixed Income), Nippon Life India Asset Management, said target maturity-based product with 3 to 4 years rolldown strategy with a relatively high grade and liquid portfolio, which will make this an attractive investment option for all category of fixed income investors. The current steepness in the yield curve adds to the appeal of this fund at the current juncture, he added.

Vishal Jain, Head ETF, Nippon Life India Asset Management, said the ETF combines the benefit of fixed maturity with ETF structure and allows investors to subscribe/redeem during the life of the product either directly with the fund house in a pre-defined lot size or as small as one unit on the NSE.

Published on October 28, 2020

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