Mumbai: Invesco Mutual Fund announces the launch of two Target Maturity Debt Index Funds – Invesco India Nifty G-sec Jul 2027 Index Fund (An open-ended Target Maturity Index Fund tracking Nifty G-sec Jul 2027 Index. A relatively high interest rate risk and relatively low credit risk) and (An open-ended Target Maturity Index Fund tracking Nifty G-sec Sep 2032 Index. A relatively high interest rate risk and relatively low credit risk).
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The funds will invest 95% -100% of its net assets in Government securities. The objective of these open-ended, passively managed target maturity debt index funds is to mirror the underlying benchmark index and mature on a pre-determined date. Invesco India Nifty G-sec Jul 2027 Index Fund will mature on July 30, 2027 and Invesco India Nifty G-sec Sep 2032 Index Fund will have maturity on September 30, 2032.
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Speaking at the launch, Taher Badshah, Chief Investment Officer, Invesco Mutual Fund said, “With Central banks steering towards the end of rate hike cycle, Indian fixed income market has come to an inflection point with risk-reward turning favourable for investors. The sharp increase in interest rates over the past one year now warrants for increased allocation towards Fixed Income as an asset class that has the potential of generating meaningful income. We are thrilled to announce the launch of our target maturity index funds. These funds have been carefully designed to capitalize on the prevailing high interest rates in the market and are particularly suited to investors with a specific financial goal that aligns with the fund’s maturity timeline and superior asset quality.”
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“At Invesco Mutual Fund, we are always looking for innovative ways to meet the evolving needs of our clients, and these new funds are testament to that commitment.”
Vikas Garg, Head of Fixed Income, Invesco Mutual Fund said “The market is offering attractive carry opportunities, as interest rates are approaching their peak and future rate actions expected to be more calibrated and data dependent. Global factors could influence domestic policy actions, which could lead to some market volatility in short term. By remaining invested for the entire tenure of target maturity funds, investors can potentially realize the benefits of attractive carry opportunities without getting impacted by interest rate volatility and achieve their financial objectives.
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Invesco India Nifty G-sec Jul 2027 Index Fund will be open on 16th March 2023 and closes on 17th March 2023 and Invesco India Nifty G-sec Sep 2023 Index Fund will open on 16th March 2023 and closes on 24th March 2023. The minimum initial investment in the funds will be Rs. 1,000/- and multiples of Re. 1/- thereafter.
