New Delhi: Kotak Mahindra Asset Management Company Limited on Friday announced the launch of open-ended Target Maturity Index Fund, Kotak Nifty SDL April 2032 Top 12 Equal Weight Index Fund.
The new fund will invest in State Development Loans (SDLs) issued by State Governments and Union Territories which are part of the Nifty SDL April 2032 Top 12 Equal Weighting Index, keeping in view the growing size of the Indian debt market.
The New Fund Offer (NFO) will open for subscription on February 4 and close on February 9. The fund is an open-ended scheme and investors can invest till maturity.
Kotak Mahindra AMC said, “To meet the liquidity requirements of the scheme, a small part of the corpus will also be invested in SEBI and RBI approved instruments like commercial papers, certificates of deposit, treasury bills etc.”
“India’s debt market has been growing in size over the past few years and investors, especially retail participants, can access a portion of the state’s debt through this launch. This will allow investors to diversify their investments and gain sovereign ownership. It will also help in getting the carry benefit through Lakshmi Iyer, CIO – Head of Loans and Products, Kotak Mahindra Asset Management Company Limited said.
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