The document describes two target maturity index funds - IDFC Gilt 2027 Index Fund and IDFC Gilt 2028 Index Fund. The IDFC Gilt 2027 Index Fund matures in June 2027 and invests in constituents of the CRISIL Gilt 2027 Index. The IDFC Gilt 2028 Index Fund matures in April 2028 and invests in constituents of the CRISIL Gilt 2028 Index. Target maturity funds offer a fixed maturity date unlike traditional debt funds, and these particular funds aim to benefit from the current steep sovereign yield curve in India.
1. Duration risk
keeps reducing
Maturity date
is defined
June 2027
is the maturity
of Fund A
April 2028
is the maturity
of Fund B
Why this Target Maturity Strategy?
Steep yield curve provides
good opportunity
Given the steepness of the curve,
the ‘carry loss’ (opportunity cost)
embedded as the cost of waiting
is quite meaningful.
6-9 year segment offers a sweet spot
KEY FACTORS
'Target-maturity funds’
are a type of mutual
fund/index fund/ETFs
that have a fixed
maturity date, unlike a
traditional debt fund.
IDFC Gilt 2027 Index Fund
An open-ended Target Maturity
Index fund, investing in constituents
of CRISIL Gilt 2027 Index.
IDFC Gilt 2028 Index Fund
An open-ended Target Maturity
Index fund, investing in constituents
of CRISIL Gilt 2028 Index.
Data as on 28th
February 2021
Sovereign Yield Curve
FUND A FUND B
3.80
4.30
4.80
5.30
5.80
6.30
6.80
7.30
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Yield
(%)
Year
2. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
This product is suitable for investors who
are seeking*:
• Income over the target maturity period.
• Investment in constituents similar to the
composition of CRISIL Gilt 2027 Index.
(An open-ended Target Maturity Index
fund investing in constituents of CRISIL
Gilt 2027 Index)
IDFC Gilt 2027 Index Fund
Riskometer
Investors understand that
their principal will be at
Moderate risk
This product is suitable for investors who
are seeking*:
• Income over the target maturity period.
• Investment in constituents similar to the
composition of CRISIL Gilt 2028 Index.
(An open-ended Target Maturity Index
fund investing in constituents of CRISIL
Gilt 2028 Index)
IDFC Gilt 2028 Index Fund
Riskometer
Investors understand that
their principal will be at
Moderate risk
Fund Manager
Benchmark
Exit Load
Minimum Application
Amount
NFO Dates
Mr. Anurag Mittal
Fund A: Crisil Gilt 2027 Index
Fund B: Crisil Gilt 2028 Index
Nil
INR 5000 & in multiples
of Re.1 thereafter
NFO Opens: 12th
March 2021 I NFO Closes: 19th
March 2021
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
If you are looking for low cost
fixed-income investment avenue
If you seek high quality
instruments - government
securities and treasury bills
If you are fine with intermittent volatility
in return of potential reasonable returns
If your investment horizon
matches the maturity
date of the funds
Easy
Liquidity
Highest Quality
Offering -
Sovereign Only
Low Cost
Offering
Aims to
benefit from
Target Maturity
Strategy
Positioned to
benefit from
steep yield
curve
Why IDFC Gilt 2027/2028 Index Fund?
?
Who should Invest?