IDFC Gilt Index Fund NFO Details

IDFC Mutual Fund has announced the launch of the IDFC Gilt Index Fund. The scheme is a target maturity index fund that would be investing its assets in the Underlying Index.

The New Fund Offer (NFO) starts on 12th March 2021 and will end on 19th March 2021. The fund will reopen for continuous sale and repurchase within 5 business days of allotment.

Different maturity plans available under the scheme with their underlying Index are:

IDFC Gilt 2027 Index Fund - CRISIL Gilt 2027 Index
IDFC Gilt 2028 Index Fund - CRISIL Gilt 2028 Index

Investment Objective

The investment objective of the scheme is to generate income over the targeted maturity by investing its assets in the constituents of its underlying index i.e CRISIL Gilt 2027 Index & CRISIL Gilt 2028 Index.

What are Target Maturity Funds?

Target Maturity Funds are the category of mutual funds, ETFs, or index funds that have a fixed maturity date.

Features

The Fund will be investing a minimum of 95% of its assets in constituents of its underlying index.
It will invest only in the constituents comprising the underlying index.
The fund may invest up to 5% of assets in Money Market Instruments and G-Secs.

Why invest in IDFC Gilt 2027/2028 Index fund?

The fund aims to benefit from the Target Maturity Strategy by having a fixed maturity.
The fund will be positioned to benefit from the steep yield curve.
The fund is offering the highest quality portfolio by investing in sovereign papers or securities only.
The fund offers high liquidity to investors. As the underlying securities are government securities, the fund will have very high liquidity.
As it is an index fund and will have passive management, it will offer a low-cost investment.

Index Constituents

CRISIL Gilt 2027 Index
	Instrument Name	Maturity	Weights
G-Sec	6.79% GS 2027	15-May-27	51.03%
G-Sec	8.24% GS 2027	15-Feb-27	46.97%
T-Bill	TB - 27/05/21 - 91D	27-May-21	0.67%
	TB - 20/05/21 - 91D	20-May-21	0.67%
	TB - 13/05/21 - 91D	13-May-21	0.67%

CRISIL Gilt 2028 Index
	Instrument Name	Maturity	Weights
G-Sec	8.28% GS 2027	21-Sep-27	43.42%
G-Sec	7.17% GS 2028	8-Jan-28	54.58%
T-Bill	TB - 27/05/21 - 91D	27-May-21	0.67%
	TB - 20/05/21 - 91D	20-May-21	0.67%
	TB - 13/05/21 - 91D	13-May-21	0.67%

Who Should Invest?

This scheme is suitable for investors who are -

Interested in income over target maturity.
Interested in investments in constituents of CRISIL Gilt 2027 Index or CRISIL Gilt 2028 Index.
Interested in investments in high-quality instruments like G-Secs, T-bills.
Recommended for investors who are looking for low-cost debt investment opportunities.
Recommended for investors with a similar investment horizon as the target maturity date.

Asset Allocation Pattern

Instruments	Minimum % of total assets (Indicative)	Maximum % of total assets (Indicative)	Risk Profile
Securities comprising the underlying Index	95%	100%	Low to Moderate
G-Secs with maturity on or before the maturity of the fund and Money Market Instruments, Cash	0%	5%	Low to Moderate

About the Scheme

Name of the fund	IDFC Gilt 2027 Index Fund IDFC Gilt 2028 Index Fund
Fund launched by	IDFC Mutual Fund
Asset Management Company	IDFC Asset Management Company Limited
Type of scheme	An open-ended target maturity index fund investing in constituents of its underlying index.
Investment Objective	The investment objective of the scheme is to generate returns closely corresponding to the returns generated by the securities in the underlying index, less expense ratio, and tracking errors.
Benchmark	IDFC Gilt 2027 Index Fund: CRISIL Gilt 2027 Index IDFC Gilt 2028 Index Fund: CRISIL Gilt 2028 Index
Entry Load	Not Applicable
Exit Load	Not Applicable
Minimum Application Amount	₹ 5,000 & in multiple of ₹ 1 thereafter
Minimum Additional Amount	₹ 1,000 & in multiple of ₹ 1 thereafter
STP, & SWP	Available
Plans Available	Regular Direct
Options	Growth Dividend Payout Dividend Reinvestment Dividend Sweep
Fund Managers	Mr. Anurag Mittal

SIP Details

Type	Minimum Installments	Minimum Amount
Monthly SIP	6	₹ 1,000 & in multiple of ₹ 1 thereafter