Its maturity date is set in advance. It is 30 April 2026. Investors will get their money back on its maturity.
Edelweiss Mutual Fund has launched a new scheme. Its name is Edelweiss Nifty PSU Bond Plus SDL Index Fund – 2026. Money can be invested in the new fund offer (NFO) of this scheme keeping in mind the long term. If you can give it the necessary time, then this scheme can give better returns than other debt instruments. Being a passive fund, the cost of investment in it is low and the picture of returns is clear.
Its maturity date is set in advance. It is 30 April 2026. This means that Edelweiss Nifty PSU Bond Plus SDL Index Fund – 2026 will then be matured. Investors will get their money back on its maturity. Investors can start investing in it with a minimum of Rs 5,000. The NFO of this scheme has opened since Wednesday. Investments can be made in this by 16 March.
NFO is the new scheme of an asset management company. Through this, a mutual fund company raises money from investors to invest in instruments such as shares, government bonds.
Edelweiss Nifty will invest in components of PSU Bond Plus SDL Index Fund – 2026 Scheme Nifty PSU Bond Plus SDL 50:50 Index. The portfolio will be divided equally into AAA PSU bonds and State Development Loans (ADLs). That is, the ratio of investment in both will be half-half. The investment limit in a single company’s bond will be 15 percent of the total amount raised.
Financial planners say that many investors hesitate to buy open-ended debt funds. The reason for this is not the clear picture of the return. In such a situation schemes like Edelweiss Nifty PSU Bond Plus SDL Index Fund – 2026 can entice investors. The picture of the return in these is clear.
If maintained till maturity, the fund’s portfolio will yield around 6.3 per cent to 6.4 per cent (bond’s return). In the direct plan, with an index ratio of 0.15% and inflation of 4%, investors can expect a return of 5.9% after tax. This is almost equal to the interest rate of FD of State Bank of India FD. However, indexation benefit is not available on SBI’s FD. For those in the 30% tax bracket, the postage tax return is only 3.73%.
Rupesh Bhansali, head (distribution), GEPL Capital, says that the scheme has visibility into returns. The portfolio is of high quality. Expense ratio is low. All these things make the scheme attractive.
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