Baroda BNP Paribas Mutual Fund launches NFO – Baroda BNP Paribas NIFTY SDL December 2026 Index Fund

Baroda BNP Paribas Mutual Fund launched new fund offer (NFO) of Baroda BNP Paribas NIFTY SDL December 2026 Index Fund. This is an open-ended Target Maturity Index Fund tracking the performance of NIFTY SDL December 2026 Index. The fund will be managed by Mayank Prakash. NFO opens on 16 January 2023 and closes on 23 January 2023.
The fund manager will buy all state development loans (SDL) present in the underlying index in the same proportion they are in the index. This is done with an objective to earn returns like that of the underlying index before fees and taxes.
Being a debt fund investing in SDL that backed by sovereign, there is little credit risk. Yields on bonds maturing in four to five years are attractive. This fund offers investors interim liquidity as well since it is an open-ended scheme. The scheme can be a good choice for conservative investors who are keen to hold on to the scheme till maturity.
The maturity of the scheme will be December 31, 2026.