Mirae Asset Mutual Fund has filed draft Scheme Information Document (SID) for Mirae Asset Nifty PSU Bond Plus SDL June 2027 50:50 Index Fund with market regulator SEBI under debt index fund category.
It will be an open-ended Passive Target Maturity Index fund investing primarily in the components of Nifty PSU Bonds Plus SDL June 2027 50:50 Index. The scheme will be benchmarked against Nifty PSU Bond Plus SDL June 2027 50:50 Index and matures on June 15, 2027.
The investment objective of the scheme is to provide returns that closely match with the total returns of the securities represented by the underlying index, subject to tracking error.
Out of the two components of the index, in the case of SDLs, issuers from the top 10 States/UTs are selected based on the maturity of their outstanding balances during the twelve-month period ending June 15, 2027. Out of the selected States/UTs, the SDL with the longest maturity is selected to be part of the index. Each State/UT which is part of the SDL component is given equal weightage as on the base date of the index.
For the PSU bond component, which constitutes the remaining 50% of the index, issuers with a credit rating of “AAA” (Triple A) and maturing during the twelve-month period ending June 15, 2027 at the time of index creation Eligible Bonds/Reviews are shortlisted. Out of the selected ones, whose minimum amount is Rs 1000 crores, they are further shortlisted.
The index will be reviewed at the end of each calendar quarter.
The provisional portfolio is given after considering the data cut-off date of August 31, 2021. Some of the issuers include the state governments of Uttar Pradesh, Tamil Nadu, Maharashtra and Power Finance Corporation Limited, REC Limited and Indian Railways in the case of SDL. Finance Corporation in the PSU bond category. The provisional portfolio comprises 19 securities and nine government-owned entities belonging to 10 States/UTs.
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