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Edelweiss Nifty PSU Bond PLUS SDL Index Fund 2026 NFO: Investment Objective, Returns, Risk, Scheme Details

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Manish Kothari
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Edelweiss Nifty PSU Bond PLUS SDL Index Fund 2026 NFO

Edelweiss Mutual Fund has announced the launch of the Edelweiss Nifty PSU Bond PLUS SDL Index Fund 2026. The scheme would be tracking the NIFTY PSU Bond Plus SDL Apr 2026 50:50 Index by investing in AAA-rated SDLs and PSU bonds which are maturing on or before April 2026.

The New Fund Offer (NFO) starts from 10th March 2021 and will end on 16th March 2021.

Investment Objective 

The investment objective of the scheme is to provide income over the long-term by tracking the Nifty PSU Bond Plus SDL Apr 2026 50:50 Index through investments in AAA-rated SDLs and PSU Bonds which are maturing on or before April 2026, less tracking errors and expense ratio.

Features

  • The Fund will be investing a minimum of 95% of its assets in the securities or the constituents of its underlying benchmark index which is: Nifty PSU Bond Plus SDL Apr 2026 50:50 Index.
  • The fund will invest in PSU Bonds & State Government securities of companies like REC, PFC, IRFC, Powergrid, etc.
  • The indicative index yield as of 25th February 2021 is 6.30%.
  • The fund will have a fixed maturity on 30th April 2026.

 Why invest in Edelweiss Nifty PSU Bond PLUS SDL Index Fund 2026?

  1. Stability: The fund will invest in fixed maturity bonds which provides stability & visibility of returns at the time of maturity.
  2. Higher safety: The fund will invest its assets in a diversified portfolio of PSU bonds and SDLs having a credit rating of AAA.
  3. No Lock-in: The fund does not have any lock-in period which allows an investor to buy or sell the units of the fund at any time as per their requirements.
  4. Transparency: The fund will only invest its assets in the constituents of the benchmark index which are eligible as per the index methodology.
  5. Lower Tax: The fund will offer tax-efficient returns on long-term investments as compared to traditional investment avenues. The gains from this fund on holdings longer than 3 years will be taxed at 20% after the benefit of indexation.
  6. Low cost: It is a passively managed fund, so the expenses or costs associated with the fund will be relatively low.

Investment Strategy of Edelweiss Nifty PSU Bond PLUS SDL Index Fund 2026

  • The fund will have a fixed maturity period along with a diversified portfolio of PSU bonds and SDLs.
  • The fund will aim to track the Nifty PSU Bond PLUS SDL April 2026 50:50 Index.
  • It will be investing in a mix of PSU bonds and SDLs which are AAA rated and have their maturity on or before the maturity date of the fund.
  • The fund will hold its underlying bonds till their maturity with an aim to offer predictable and stable returns.

NIFTY PSU Bond Plus SDL Apr 2026 50:50 - Index Constituents

IssuerCredit RatingMaturity DateWeightage
NHPC LIMITEDAAA24-Apr-264.55%
INDIAN RAILWAY FINANCE CORPORATION LIMITEDAAA29-Mar-264.55%
NUCLEAR POWER CORPORATION OF INDIA LIMITEDAAA25-Mar-264.55%
NLC INDIA LIMITEDAAA12-Feb-264.55%
REC LIMITEDAAA31-Jan-264.55%
INDIAN OIL CORPORATION LIMITEDAAA23-Jan-264.55%
MANGALORE REFINERY AND PETROCHEMICALS LIMITEDAAA29-Dec-254.55%
POWER GRID CORPORATION OF INDIA LIMITEDAAA23-Dec-254.55%
NTPC LIMITEDAAA15-Dec-254.55%
POWER FINANCE CORPORATION LIMITEDAAA15-Dec-254.55%
EXPORT IMPORT BANK OF INDIAAAA07-Dec-254.55%
ANDHRA PRADESH GOVERNMENTSOV22-Apr-265.00%
UTTAR PRADESH GOVERNMENTSOV20-Apr-265.00%
GUJARAT GOVERNMENTSOV31-Mar-265.00%
WEST BENGAL GOVERNMENTSOV23-Mar-265.00%
MAHARASHTRA GOVERNMENTSOV09-Mar-265.00%
KARNATAKA GOVERNMENTSOV06-Mar-265.00%
MADHYA PRADESH GOVERNMENTSOV24-Feb-265.00%
RAJASTHAN GOVERNMENTSOV10-Feb-265.00%
BIHAR GOVERNMENTSOV20-Jan-265.00%
TAMIL NADU GOVERNMENTSOV20-Nov-255.00%

Who Should Invest?

This scheme is suitable for investors who are -

  • Interested in income over long-term.
  • Interested in investments in quality PSU and State Government Bonds of India.
  • Interested in investments in targeted maturity index fund.
  • Interested in passive investments.

Asset Allocation Pattern

InstrumentsMinimum % of total assets (Indicative)Maximum % of total assets (Indicative)Risk Profile
PSUs Bonds and State Development Loans (SDLs) forming part of the PSU & SDL portion in the Nifty PSU Bond Plus Apr 2026 50:50 Index95%100%Low to Moderate
Money Market Instruments including cash & cash eq.0%5%Low

About the Scheme

Name of the fundEdelweiss Nifty PSU Bond PLUS SDL Index Fund 2026
Fund launched byEdelweiss Mutual Fund 
Asset Management CompanyEdelweiss Asset Management Limited
Type of schemeAn open-ended targeted maturity Index Fund which will be investing in the constituents of the Nifty PSU Bond Plus SDL Apr 2026 50:50 Index.
Investment ObjectiveThe investment objective of the scheme is to generate income by tracking the Nifty PSU Bond Plus SDL Apr 2026 50:50 Index by investing in AAA-rated SDLs and PSU Bonds which will be maturing on or before April 2026, less tracking errors and expense ratio.
BenchmarkNIFTY PSU Bond Plus SDL Apr 2026 50:50 Index
Entry LoadNot Applicable
Exit Load

0.15% of applicable NAV - If units are redeemed or switched out within 30 days.

Nil - If units are redeemed or switched out after 30 days.

Minimum Application Amount ₹ 5,000 & in multiples of ₹ 1 thereafter
Minimum Additional Amount₹ 500 & in multiples of ₹ 1 thereafter
STP, & SWPAvailable
Plans Available
  • Regular
  • Direct
Options
  • Growth
  • Dividend Payout
  • Dividend Reinvestment
  • Dividend Transfer
Fund ManagersMr. Dhawal Dalal and Mr. Gautam Kaul 

SIP Details

Type Minimum InstallmentsMinimum Amount
Daily SIP20₹300 & in multiples of ₹1 thereafter
Weekly SIP12₹500 & in multiples of ₹1 thereafter 
Fortnightly SIP12₹500 & in multiples of ₹1 thereafter 
Monthly SIP12₹500 & in multiples of ₹1 thereafter 
Quarterly SIP6₹1,000 & in multiples of ₹1 thereafter

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