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 February 10.

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.