Nippon India has launched its Nippon India ETF Nifty CPSE Bond Plus SDL – Maturity 2024. The NFO for the ETF is open from 3rd November 2020 until 9th November 2020. The exchange traded fund will be tracking a specifically constructed index, the Nifty CPSE Bond plus SDL - September 2024 50:50 index. At the time of the launch of the ETF, the weight of this index will be equally divided between AAA bonds issues by government owned entities and State Development Loans (SDLs). Returns for papers maturing between 1st October 2023 and 30th September 2024 will be measured by this index. Index to follow a buy-and-hold strategy except under certain conditions.
Portfolio to be reviewed quarterly and rebalanced under following conditions:
• In case weightage for a single issuer exceeds 15%
• In case rating for an issuer falls below AAA
• Issuer is up for disinvestment
ETF will replicate and track the above index. 95-100% of assets will be invested in CPSE bonds and SDLs. Expected return or yield on the Nippon CPSE plus SDL ETF is approx. 5.10% to 5.20%.