NFO Alert: Edelweiss Mutual Fund launches CRISIL IBX AAA Financial Services - Jan 2028 Index Fund

Edelweiss Mutual Fund has launched Edelweiss CRISIL IBX AAA Financial Services - Jan 2028 Index Fund, an open-ended target maturity debt Index Fund predominantly investing in the constituents of CRISIL IBX AAA Financial Services – Jan 2028 Index with a relatively high-interest rate risk and relatively low credit risk.

The new fund offer or NFO of the scheme is open for subscription and will close on November 26. The scheme will reopen for continuous sale and repurchase on or before December 3.

The scheme will be benchmarked against CRISIL IBX AAA Financial Services – Jan 2028 index and will be managed by Dhawal Dalal, Rahul Dedhia. The scheme will offer regular and direct plans both with growth and IDCW options.


The minimum application amount is of Rs 100 and multiples of Re 1 thereafter. The amount based redemptions will be in multiples of Re 1.

An exit load of 0.10% will be applicable if redeemed upto 30 days and then it will be nil post 30 days.

The scheme will allocate 95-100% in fixed income instruments replicating CRISIL-IBX AAA Financial Services Index – Jan 2028 and 0-5% in TREPS / Repo / T-Bills / G-Sec / SDL.

The scheme shall be considered to be replicating the underlying index, provided:

• The Macaulay duration (MD) of the portfolio of the ETF/ Index Fund replicates the MD of the underlying index within a maximum permissible deviation of +/- 10%.
  
• In case of Target Maturity (or Target Date) ETFs/ Index Funds, the following norms for permissible deviation in MD shall apply:
  

• For portfolio with residual maturity of greater than 5 years: Either +/- 6 months or +/- 10% of MD, whichever is higher.
  
• For a portfolio with residual maturity of up to 5 years: Either +/- 3 months or +/- 10% of MD, whichever is higher.
  
• However, at no point of time, the residual maturity of any security forming part of the portfolio shall be beyond the target maturity date of the ETF/ Index Fund.
  

Edelweiss CRISIL-IBX AAA Financial Services – Jan 2028 Index Fund is a passively managed Index fund which will employ an investment approach designed to track the CRISIL-IBX AAA Financial Services Index – Jan 2028. Being a target maturity scheme, it will mature on the Maturity Date. The Scheme shall replicate the underlying debt index.

The scheme is suitable for investors who are seeking income over the long term and want returns that are in line with the performance of CRISIL IBX AAA Financial Services – Jan 2028 Index, subject to tracking errors.