IDFC Mutual Fund has announced the launch of the IDFC Crisil IBX Gilt–April 2032 Index Fund. The open-ended target maturity index fund will invest in constituents of Crisil IBX Gilt Index–April 2032, as well as follow it as its benchmark.
The new fund offer (NFO) opened on February 6, 2023, and will close on February 14, 2023. The minimum application amount is Rs. 1,000 in the lump sum mode and in multiples of Re. 1, thereafter. For systematic investment plan (SIP), the minimum amount is Rs. 100 and in multiples of Re. 1, thereafter. For systematic transfer plan (STP), the minimum investment is Rs. 500 and any amount, thereafter. There is no exit load.
IDFC Mutual Fund announced in a press release that this is a target maturity debt index fund, and so, it will invest in debt securities, and also has a specified termination date. The scheme will terminate on April 30, 2032.
IDFC Mutual Fund said that the fund offers several benefits over other instruments with a long investment tenure. There is no lock-in; the fund offers benefits of indexation after three years, and lastly, higher yield.
According to IDFC Mutual Fund, the fund is suitable for investors looking for a low-cost debt investment avenue that invests in high quality Government securities (G-secs) and offers reasonable returns and income over the target maturity period.
Vishal Kapoor, CEO, IDFC AMC said, “Prudent investors recognise the importance of diversifying their fixed income portfolio through a strategic asset allocation approach that balances quality, stability, liquidity, and the potential for relatively higher returns compared to conventional fixed-term investments. Over the past one year, with the rise in interest rates, the long-term yields, too, have moved up, thereby providing a compelling opportunity for long-term savers.”
He added: “Target maturity index funds offer investors the chance to benefit from attractive yields, along with a reasonably clear view of returns for those who hold the investment until maturity. The IDFC Crisil IBX Gilt-April 2032 Index Fund is a solution for long-term investors, providing an easy and cost-effective way to invest in sovereign securities that align with their investment timeline.”
According to IDFC Mutual Fund, investors can invest either through mutual fund distributors, other online platforms, as well as directly on the fund house’s website.
