Edelweiss Mutual Fund launches short duration index fund

Edelweiss Asset Management Limited has launched Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund, India’s first passive short-duration index fund. The new fund offer will open for subscription from January 27 to February10.

Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund will replicate CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index by investing in a diversified portfolio of Indian Government Bonds and SDLs, subject to tracking errors.

Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund will invest in 50% Indian Government Bonds (IGBs) and 50% State Development Loans (SDLs). The G-Sec portion will be constructed by selecting most liquid Government Bonds with a minimum outstanding of Rs 10,000 crores falling in duration buckets starting from 1 year to 5 years. The SDL portion will be constructed by first selecting most liquid state issuers falling in each of the eligible duration buckets and then by selecting the most liquid ISIN from each of these buckets with a minimum outstanding of Rs. 500 crores. The index will be rebalanced every quarter with an effective date as the first business day of the month.


According to the fund house, the passive duration management in these funds is consistent and free from any bias. The lower cost will add up in the returns. This cost-effective index fund can be an ideal option for investors looking to include fixed income in their portfolio as a component of their asset allocation strategy.

“We are proud to announce the launch of our new passive index fund, the Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund, which is poised to become the game-changer in the industry. With many active debt funds underperforming their benchmark due to high costs and biased duration calls, this fund offers better predictability on asset allocation, credit quality, and duration, and is a low-cost substitute over other active funds for short-term investments. As a leader in the passive debt Fund space, Edelweiss MF takes great pride in launching this innovative yet simple investment solution for our investors, which paves the way for an entire new category that can yet again disrupt the debt passives category,” says Radhika Gupta, MD and CEO, Edelweiss AMC.