SBI Mutual Fund announced the launch of SBI CPSE Bond Plus SDL Sep 2026 50:50 Index Fund, an open-ended target maturity index fund investing in constituents of Nifty CPSE Bond Plus SDL Sep 2026 50:50 Index. The new fund offer will open on January 3, 2022 and closes on January 17, 2022.
The investment objective of the scheme is to provide returns that closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error.
Mr. D P Singh, Chief Business Officer, said: “The fund is suitable for investors who are seeking income over the target maturity period and safer fixed income avenues. With this new fund offering, we continue to expand our product portfolio for our investors to assist them to achieve their financial goals efficiently.’’
With the addition of SBI CPSE Bond Plus SDL Sep 2026 50:50 Index Fund, we continue to augment our portfolio of offerings in the fixed income passive investment space, in addition to our actively managed funds. This fund provides indexation benefit to investors, with long-term capital gains in Debt Mutual Funds taxed at 20% post Indexation, as compared to 30% without indexation (assuming highest income slab rate) in traditional investment options. Mr. Singh added.”
Mr. Rajeev Radhakrishnan, CIO – Fixed Income, said “The fund provides an opportunity to gain exposure in CPSE Bonds & SDL, with an added benefit of liquidity. The scheme has a pre-defined maturity of September 30, 2026, enabling the scheme to invest in securities maturing around the maturity date of the scheme. Thus, minimizing reinvestment risk. The duration of the underlying portfolio reduces as the scheme nears maturity, given that the scheme would follow a defined maturity investment i.e., September 2026. Therefore, if held till maturity, there is minimal duration risk associated with the investment. ”
The scheme would invest between 95 – 100 % investment in securities covered by Nifty CPSE Bond Plus SDL Sep 2026 50:50 Index. It can also invest upto 5 % in Government Securities maturing on or before maturity date of the Scheme, Money Market instruments including Triparty Repo and units of liquid mutual fund*. The minimum application amount (during the NFO period) required is of Rs. 5,000 and in multiples of Re.1 thereafter. Dinesh Ahuja is the Fund Manager of the Scheme.