Edelweiss Mutual Fund Launches Edelweiss NIFTY PSU Bond Plus SDL Index Fund – 2026

Edelweiss Asset Management Company announced the launch of new fund offer (NFO) of Edelweiss NIFTY PSU Bond Plus SDL Index Fund – 2026. Passively managed, this index fund will invest in AAA rated PSU bonds as well as state development loans (SDL). NFO opens on March 10, 2021.

The fund will have a defined maturity date of April 30, 2026. At maturity, investors will get back their investment proceeds. The fund will aim to hold the bonds till maturity in order to provide stability and visibility of returns to investors. Taxed at 20% post indexation, this fund will be more tax efficient as compared to traditional avenues.

“Yields have risen in last couple of weeks and this is a good time to invest in a target maturity fund and lock-in investments at higher yields. This index fund can give a fair amount of visible and tax efficient returns, along with higher safety and transparency at a low cost,” commented Radhika Gupta, CEO, Edelweiss Mutual Fund.

This fund will predominantly invest in the constituents of NIFTY PSU Bond Plus SDL 50:50 Index. Proportion of investments of AAA PSU Bonds and SDLs will be equally divided. Exposure to any single company’s bonds or loans would be capped at 15% of the corpus. Subsequently, there will be a quarterly rebalancing and review of the index constituents.

The Edelweiss NIFTY PSU Bond Plus SDL Index Fund – 2026 NFO will be open for subscription between March 10 to March 16, 2021.Minimum investment is Rs 5000.

A similar offering – Nippon India ETF Nifty CPSE Bond Plus SDL – 2024 Maturity was launched in November 2020. The fund lost 0.3% since launch.