PGIM India CRISIL IBX Gilt Index Apr 2028 Fund
- Date of Inception: Direct Plan: February 22, 2023.
- ^Above returns are CAGR - Compounded Annual Growth Rate.
- ** Scheme Benchmark. # Standard Benchmark. *Based on standard investment of Rs.10,000 made at the beginning of the relevant period.
- Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments.
- Different plans have a different expense structure. The above returns are as on January 31, 2025.
- The performance provided is for Direct Plan - Growth Option.
The scheme will invest in the constituents of the underlying index viz. CRISIL-IBX Gilt Index - April 2028, and will use a passive investment approach to manage the portfolio, subject to tracking error. The fund manager’s endeavor would be to rebalance the portfolio in order to replicate the underlying index. However, there may be a short period where the constituents of the portfolio may differ from that of the underlying index. In case of any deviation from the asset allocation pattern, the portfolio to be rebalanced by AMC within 7 days from the date of said deviation.
What are Target Maturity Funds?
Target Maturity Funds are passively managed funds (either ETF or Index Funds) which aim to hold the underlying bonds of the Index till maturity. One hallmark of TMFs is that they follow a roll down strategy, which means that the average maturity of the fund falls each year. Unlike other open-ended funds, TMFs have a defined maturity and investors generally get their principal along with interest back after the fund’s maturity. TMFs carry relatively low to moderate credit risk as they invest in a high quality portfolio comprising government securities, PSU bonds and State Development Loans which enjoy sovereign and quasi-sovereign status. TMFs carry a high interest rate risk though.
Index Methodology and Constituent details
Target Maturity Funds are structured as passive funds which invest in a mix of SDLs, G-secs, and PSU Bonds. They are not actively managed funds and hence charge a relatively lower expense ratio as compared to actively managed debt funds. Unlike other debt funds, TMFs come with a specified maturity date when generally investors receive their principal along with interest income. However, investors have the option of redeeming their investments even before the maturity.
Target Maturity Funds follow a passive strategy and offer liquidity. Investors who are looking at an alternative to FMPs and if their investment horizon matches with the maturity of the fund, can consider these funds. These funds invest in a high quality portfolio of G-secs, PSU bonds and State Development Loans so the credit risk is relatively low to moderate. TMFs can be a part of investor’s core fixed income portfolio.
Target Maturity Funds are permitted to invest only in G-secs, PSU bonds and State Development Loans that mirror an index. As far as credit risk is concerned, TMFs which solely invest in G-secs have relatively low credit risk. Credit Risk is the possibility of an issuer failing to make a principal and interest payment when due.
These funds carry a relatively high interest rate risk and a relatively low to moderate credit risk. Interest rate risk is the risk associated with changes in prices of securities such as bonds owing to changes in interest rates. The prices of debt securities generally rise as interest rates decline and vice versa. The extent of change in price depends on the existing coupon, days to maturity and the extent of increase or decrease in interest rates. The scheme's risk is indicatedby the Riskometer.
Target Maturity Funds are meant both for new and seasoned investors. One should ideally remain invested till the maturity of the fund.
There are several options to invest.
- Website: You can invest through https://investors.pgimindiamf.com/auth/login by creating your profile and submitting identity details, and bank account information, and becoming KYC compliant.
- RIA/MFD: You can also invest through a Registered Investment Adviser or Mutual Fund distributor registered with SEBI/AMFI.
- Industry Portal: You can also invest through MF Utility or MF Central portals.
Do consult your financial advisor before investing to understand if the fund fits into your risk profile.
Each fund in this category comes with a different maturity date. For instance, some funds will mature in 2026 while others in 2028. Hence, your investment horizon should ideally match with the fund’s maturity. Since they are open-ended, TMFs provide you the choice of redeeming before the maturity of the fund.
TMFs are structured as debt funds.
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*Short Term Capital Gain Tax: Gains arising out of investments redeemed before 36 months are treated as short term capital gains tax and taxed as per your slab rate.
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*Long Term Capital Gain Tax: Gains arising out of investments redeemed after 36 months are treated as long term capital gains and taxed at 20% with indexation benefit.
* Applicable for investments made till March 31, 2023. Gains arising out of investments made from April 1, 2023, are taxed as per your slab rate. Long term capital gains tax and indexation benefit will no longer be available for such investments.
No indexation benefits on units sold or redeemed on or after 23 July 2024.
Taxed at the investor’s slab rate irrespective of the holding period. Indexation benefit is no longer available.
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Each CRISIL Index (including, for the avoidance of doubt, its values and constituents) is the sole property of CRISIL Limited (CRISIL). No CRISIL Index may be copied, retransmitted or redistributed in any manner. While CRISIL uses reasonable care in computing the CRISIL Indices and bases its calculation on data that it considers reliable, CRISIL does not warrant that any CRISIL Index is error-free, complete, adequate or without faults. Anyone accessing and/or using any part of the CRISIL Indices does so subject to the condition that: (a) CRISIL is not responsible for any errors, omissions or faults with respect to any CRISIL Index or for the results obtained from the use of any CRISIL Index; (b) CRISIL does not accept any liability (and expressly excludes all liability) arising from or relating to their use of any part of CRISIL Indices.
- Income over the target maturity period.
- Investment in constituents of the CRISIL-IBX Gilt Index - April 2028
- Degree of risk – Low to Moderate
The risk of the Benchmark is
Low to Moderate
The risk of the Benchmark is Low to Moderate
