Chennai: IDFC Mutual Fund has announced the launch of two fixed income funds- the IDFC Gilt 2027 Index Fund and the IDFC Gilt 2028 Index Fund.
Both are open-ended target maturity index funds which will invest in government securities and treasury bills that constitute the CRISIL Gilt 2027 Index and Gilt 2028 Index respectively. The New Fund Offer (NFO) opens on Friday, 12 March, 2021 and closes on 19 March.
Target maturity funds have a defined maturity date, unlike regular open-end mutual funds that remain open indefinitely. Upon maturity, the net asset value of these funds will be paid back to unitholders.