Edelweiss Mutual Fund Files Draft For CRISIL-IBX AAA Bond NBFC-HFC – Jun 2027 Index Fund

The Edelweiss CRISIL-IBX AAA Bond NBFC-HFC – Jun 2027 Index Fund is an open-ended debt index fund. It invests primarily in AAA-rated bonds issued by Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs), all maturing by June 2027. The fund comes with moderate interest rate risk and relatively low credit risk.

Investment Details

The fund replicates the performance of the CRISIL-IBX AAA NBFC-HFC Index – Jun 2027. It does this by investing at least 95% of its assets in bonds that are part of the index. A small portion, up to 5%, is set aside for liquidity in instruments like T-bills and government securities.

• Maturity Date: June 30, 2027
• NAV Pricing: Units are priced at ₹10 during the NFO.
• Exit Load: 0.10% for redemptions within 30 days; nil after that.
• Minimum Investment: ₹100 and multiples of ₹1 thereafter.

Benchmark and Management

The fund uses the CRISIL-IBX AAA NBFC-HFC Index – Jun 2027 as its benchmark. Its performance closely follows the index, with tracking errors expected to stay below 2% per year. The fund is passively managed and follows a “buy and hold” strategy to align with the index maturity date.

Risks and Expenses

Key risks include interest rate fluctuations and market volatility. The fund’s expenses, capped at a 1% Total Expense Ratio (TER), cover fund management and other operational costs. An additional 0.05% may apply for specific costs, as allowed by SEBI regulations.

Liquidity and Redemption

Investors can purchase and redeem units on any business day. The redemption proceeds are dispatched within three working days. In case of delays, SEBI mandates an interest payment of 15% per annum from the fourth day onwards.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.