Edelweiss Asset Management has announced the launch of a Target Maturity Index Fund called Edelweiss Nifty PSU Bond Plus SDL Index Fund – 2027. The scheme will be managed passively and will be invested in AAA-rated PSU bonds as well as State Development Loans (SDLs). Edelweiss Nifty PSU SDL Index Fund – 2027 NFO will be open for subscription between 30 September to 8 October.

Earlier this year in March, Edelweiss AMC launched India’s first fixed income index fund – Edelweiss Nifty PSU Bond Plus SDL Index Fund – 2026 – with a target maturity structure and in less than six months to Rs 3,000 crore. Reached AUM of more. As per the fund house, the total AUM of Target Maturity Index Funds/ETFs managed by Edelweiss AMC as on 22nd September 2021 is around Rs 40,000 crores.

As per the press release, the fund’s scheduled maturity date will be April 30, 2027. On maturity, investors will get their investment income back. 100% of the fund’s income is invested in AAA CPSE Equipment and State Development Loans. Income will be taxed at 20% post-indexation.

This open-ended Target Maturity Index Fund will primarily invest in the constituents of Nifty PSU Bonds Plus SDL April 2027 50:50 Index. The investment ratio of AAA PSU bonds and SDLs will be divided equally, with a weighting of 50% each. Exposure to bonds or loans of a single company will be capped at 15% of the corpus. Thereafter, there will be quarterly rebalancing and review of the index components.