13 Oct 2022
Another NFO is open!
What are Target Maturity Funds?
These are a type of debt funds that have a specific maturity date, aligned with the expiry date of the instruments that it has in its portfolio, in line with the underlying debt index.
The bonds held in these scheme(s) are usually held till maturity, and at maturity, investors get back their investment proceeds.
Who can consider investing in this fund? This fund can be suitable for investors looking for–
- Low Cost: This fund has a low expense ratio given that it is passively managed.
- Relatively Safer: State development loans and AAA-rated PSU bonds follow closely on the heels of the central-government-issued Gilts.
- Fixed Income Securities: The fund will invest in instruments which have fixed maturity.
- Tax Efficiency: The fund provides the benefit of indexation, which can lead to lower tax implications.
The Kotak Nifty SDL Plus AAA PSU Bond Jul 2033 60:40 Index Fund is benchmarked against the Nifty SDL Plus AAA PSU Bond Jul 2033 60:40 Index and will be managed by fund manager Mr. Abhishek Bisen.
Its investment objective is to track its benchmark by investing in SDLs and PSU Bonds, maturing on or before Jul 2033, subject to tracking differences. *
A portion of its portfolio may also be invested in Cash & Debt/ Money Market instruments^.
This NFO is currently open for subscription and will remain open until Oct 17, 2022. Invest Now!
*There is no assurance or guarantee that the investment objective of the scheme will be achieved.
^Source: Scheme Information Document (“SID”), Kotak Nifty SDL Plus AAA PSU Bond Jul 2033 60:40 Index Fund. Refer to SID for complete and detailed asset allocation details.
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