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SBI Nifty G‑Sec Jul 2031 Index Fund is an open-ended Target Maturity Index Fund predominantly investing in constituents of Nifty G-Sec Jul 2031 Index with a relatively high-interest rate risk and relatively low credit risk.
“In an environment where investors are increasingly seeking predictability, transparency, and high‑quality fixed‑income exposure, target‑maturity and G‑sec‑based index strategies can form an important part of fixed income portfolios,” said Nand Kishore, MD & CEO, SBI Funds Management.
“The launch of the SBI CRISIL‑IBX 10:90 Gilt + SDL Index – Dec 2029 Index Fund and the SBI Nifty G‑Sec Jul 2031 Index Fund reflect our continued focus on offering low‑cost, rule‑based solutions that provide access to sovereign and quasi‑sovereign instruments across defined maturities,” he further said.
The investment objective of the schemes is to provide returns that closely correspond to the total returns of the securities represented by their respective underlying indices, subject to tracking error.
“These new index fund launches further strengthen our passive fixed‑income suite by offering investors access to professionally constructed portfolios of Government securities and State Development Loans through a simple and transparent index framework,” said DP Singh, Joint CEO, SBI Funds Management.
Singh further said that while the SBI CRISIL‑IBX 10:90 Gilt + SDL Index – Dec 2029 Index Fund provides a defined‑maturity exposure to a combination of G‑Secs and SDLs, the SBI Nifty G‑Sec Jul 2031 Index Fund offers pure G‑Sec exposure with a clear target maturity, making both products well‑suited for investors seeking duration clarity and disciplined fixed‑income allocation.
The SBI CRISIL‑IBX 10:90 Gilt + SDL Index – Dec 2029 Index Fund will primarily invest between 95% and 100% of its assets in securities forming part of the CRISIL-IBX 10:90 Gilt + SDL Index – Dec 2029 Index.
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The SBI Nifty G‑Sec Jul 2031 Index Fund will primarily invest between 95% and 100% of its assets in securities forming part of the Nifty G‑Sec Jul 2031 Index. The balance up to 5% of the assets of each fund may be invested in debt, money market instruments, and cash and cash equivalents.
The minimum application amount during the New Fund Offer (NFO) is Rs 5,000 and in multiples of Re 1 thereafter. Additional purchases can be made for Rs 1,000 and in multiples of Re 1 thereafter.
Investors may also invest through Systematic Investment Plans (SIPs) with daily, weekly, monthly, quarterly, semi‑annual, or annual frequencies. The scheme will be managed by Rajeev Radhakrishnan.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
