Nippon India ETF Nifty CPSE Bond Plus SDL - 2024 Maturity NFO

Nippon India ETF Nifty CPSE Bond Plus SDL - 2024 Maturity NFO.

Nippon India launches a Fixed Income ETF, which invests in CPSE Bonds & State Development Loans (SDL), similar to the composition of "Nifty CPSE Bond Plus SDL Sep 2024 50:50 Index".

DEBT FUNDS INDIA

Details:

  • The investment objective of the scheme is to provide investment returns closely corresponding to the total returns of the securities as represented by the above index.
  • New Fund Offer: November 03 - 09, 2020.
  • Minimum Application amount during NFO Rs.5,000 & in multiples of Re.1 thereafter.
  • The ETF will be listed on NSE.
  • Benchmark - Nifty CPSE Bond Plus SDL Sep 2024 50:50 Index.
  • Expense ratio: N/A
The Fund predominantly invests in:

1. Bonds issued by CPSEs/CPSUs/CPFIs and other Government organizations representing the bonds portion of Nifty CPSE Bond Plus SDL Sep 2024 50:50 Index.
* CPSU – Central Public Sector Unit; CPFI – Central Public Financial Institution

2. State Development Loans (SDLs) representing the SDL portion of Nifty CPSE Bond Plus SDL Sep 2024 50:50 Index.

The Scheme will follow Buy and Hold investment strategy in which existing bonds and SDLs will be held till maturity unless sold for meeting redemption requirement.

Brief details about the instruments are given below:

NIPPON ETF

Risks:

Investment in Government securities like all other debt instruments is subject to price and interest rate risk. Generally, when interest rates rise, prices of fixed income securities fall and when interest rates drop, the prices increase. 
The extent of fall or rise in prices is a function of the existing coupon, days to maturity and the increase or decrease in interest rates. Price-risk is not unique to Government securities but is true for all fixed income securities.