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ICICI Prudential MF launches two target maturity funds


ICICI Prudential Mutual Fund has announced the launch of two target maturity funds: ICICI Prudential Nifty SDL Dec 2028 Index Fund and ICICI Prudential Nifty G-Sec Dec 2030 Index Fund. Target Maturity Index Funds are open-ended passively managed funds that replicate the underlying debt index having a specific maturity date. The constituents of the index are generally hold-till-maturity.

According to the press release, ICICI Prudential Nifty SDL Dec 2028 Index Fund invests in the constituents of Nifty SDL Dec 2028 index while ICICI Prudential Nifty G-Sec Dec 2030 Index Fund invests in the constituents of Nifty G-Sec Dec 2030 Index. Both the offering aims to provide returns that closely correspond to the total return of the underlying index, subject to tracking errors. ICICI Prudential Nifty SDL Dec 2028 Index Fund will open for subscription on October 4 and closes on October 11. ICICI Prudential Nifty G-Sec Dec 2030 Index Fund will open on October 4 and close on October 10.

“In a rising interest rate scenario, investors looking for fixed duration returns within a specific maturity bucket can consider investing in Target Maturity Index Funds. Some of the key features of the target maturity funds is that it largely adopts a hold-to-maturity approach as it replicates the underlying index which constitutes of State Development Loans of various States or Union Territories of India or G-Secs depending on the type of the offering chosen. If held for more than three years, investors get the benefit of indexation which significantly increases the post-tax returns of those in higher tax brackets,” said Chintan Haria, Head – Product Development and Strategy, ICICI Prudential AMC.



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