The PGIM India CRISIL IBX Gilt Index – Apr 2028 Fund is open for subscription and it will close on February 16. The fund will be managed by Puneet Pal, Head – Fixed Income, PGIM India Mutual Fund, and co-managed by Bhupesh Kalyani, Fund Manager, PGIM India Mutual Fund.
The investment objective of the scheme is to generate returns that correspond to the total returns of the securities as represented by the CRISIL IBX Gilt Index – April 2028 (before fees and expenses), subject to tracking errors.
The weightage of the G-Sec securities and T-bills Securities in this index fund will be 98% and 2%, respectively. The fund will mature on April 05, 2028. All G-Sec securities selected will have a maturity date from September 6, 2027 to April 5, 2028. The index will be reviewed and rebalanced on a 6 monthly basis.
“Given the aggressive and frontloaded rate hikes, major central banks including RBI have slowed the quantum of rate hikes. With inflation cooling off globally and locally, rates may also peak out consequently. G-Sec oriented mutual fund portfolios generally provide an additional spread over traditional deposits and are tax-efficient for investors looking to lock-in at the current elevated yield levels. In this scenario, PGIM India CRISIL IBX Gilt Index – Apr 2028 Fund offers an optimal opportunity to benefit from the current interest rates. While TMFs are permitted to invest across G-Sec/SDL/Corporate Bonds, we believe G-Sec oriented portfolios offer better risk-reward opportunity. Hence, PGIM India will focus on launching predominantly G-Sec based funds rather than having a mixture of SDL/Corporate Bonds going ahead as well,” said Puneet Pal, Head – Fixed Income, PGIM India Mutual Fund.