IDFC Mutual Fund launches two target maturity funds

IDFC Mutual Fund has launched IDFC CRISIL IBX 90:10 SDL Plus Gilt– November 2026 Index Fund and IDFC CRISIL IBX 90:10 SDL Plus Gilt– April 2032 Index Fund, open-ended Target Maturity Index Funds that will invest in constituents of CRISIL IBX 90:10 SDL plus Gilt Index– November 2026 and CRISIL IBX 90:10 SDL plus Gilt Index– April 2032 respectively.

The funds will be managed by Gautam Kaul and will invest in a mix of state development loans and gilt securities. “The recent increase in market expectation of further monetary policy tightening has resulted in a spike in yields, offering value amidst the volatility. The SDL strategy provides a relatively higher yield compared to G-Sec and PSU AAA bonds.

Given the upward yield shift in the 3–5 year and 10-year maturity bucket, we believe IDFC CRISIL IBX 90:10 SDL Plus Gilt– November 2026 Index Fund and IDFC CRISIL IBX 90:10 SDL Plus Gilt– April 2032 Index Fund could provide an attractive investment opportunity. In our opinion, investors could derive value from this strategy, given that we are in the last leg of the rate hike cycle. The funds are well-positioned to benefit from the market opportunity, making this launch very timely,” said Gautam Kaul.