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IDFC Mutual Fund launches Two New Target Maturity Funds

IDFC

IDFC Mutual Fund launches Two New Target Maturity Funds

IDFC CRISIL IBX 90:10 SDL Plus Gilt– November 2026 Index Fund – NFO dates 14th – 16th November 2022

IDFC CRISIL IBX 90:10 SDL Plus Gilt– April 2032 Index Fund – NFO dates 14th – 28th November 2022

IDFC Mutual Fund announced the launch of the 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, open-ended Target Maturity Index Funds that 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. IDFC CRISIL IBX 90:10 SDL Plus Gilt– November 2026 Index Fund opens on Monday, November 14, 2022, and closes on Wednesday, November 16, 2022. IDFC CRISIL IBX 90:10 SDL Plus Gilt– April 2032 Index Fund opens on Monday, November 14, 2022, and closes on Monday, November 28, 2022. Investment can be made through licensed mutual fund distributors and online platforms, as well as directly on https://idfcmf.com/.

Highlighting why investors may consider including State Development Loans (SDL) Target Maturity Index Funds in their portfolio, Mr. Vishal Kapoor, CEO, IDFC AMC said, “Prudent investors understand that it is vital to diversify their fixed income portfolio through an asset allocation strategy that would provide an elusive combination of quality, reasonable stability, liquidity and the potential to earn relatively higher returns compared to traditional fixed term instruments. 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 of 31st 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. SDL Target Maturity Index Funds could help investors benefit from the relatively higher yield opportunity while facilitating reasonable visibility of returns to those who remain invested till maturity. Our latest offering IDFC CRISIL IBX 90:10 SDL Plus Gilt– November 2026 Index Fund could be an effective solution for investors with a short-term investment horizon of 3-4 years. Whereas, IDFC CRISIL IBX 90:10 SDL Plus Gilt– April 2032 Index Fund caters to the needs of long-term investors who are seeking to invest for 10 years. These funds are a simple, low-cost access to quality debt investments for investors with a matching investment time horizon.”

Highlighting the current opportunity, Mr. Gautam Kaul, Fund Manager for the funds added, “The recent increase in market expectation of further monetary policy tightening has resulted in a spike in yields, offering value amidst the volatility. 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 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 could provide an attractive investment opportunity. In our opinion, investors could derive value from this strategy, given that we are in the last leg of the rate hike cycle. The funds are well-positioned to benefit from the market opportunity, making this launch very timely.”

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Bengaluru /14 November 2022