DSP Asset Managers launches DSP CRISIL SDL Plus G - Sec Apr 2033 50:50 Index Fund

Mumbai, January 09, 2023: DSP Asset Managers announced the launch of DSP CRISIL SDL Plus G - Sec Apr 2033 50:50 Index Fund, an open-ended target maturity index fund investing in the constituents of CRISIL SDL Plus G-Sec Apr 2033 50:50 Index with maturity on April 25, 2033. The portfolio is proposed to be invested in highly liquid Government Securities (G-Sec) and State Development Loans (SDLs) from states with good financial position and high liquidity in a 50:50 ratio.

The portfolio has a unique design with dual filters for selecting SDLs. Instead of just applying a Liquidity Filter, there is an additional Quality Filter of low leverage. This Quality Filter is based on each State’s GDP in proportion to its total liabilities and the top 5 States/UTs with the best quality scores will be selected with 10% weight to each state. Hence the proposed portfolio is likely to have a combination of highly liquid G-Secs and a selective list of SDLs with low leverage and high liquidity, all which are maturing within the 12-month period ending April 25, 2033.

The Fund offers investors the advantage of a bond like structure with fixed maturity positioned to provide visibility of returns at maturity. The open ended structure of the fund also allows constant buying and selling of fund unlike Fixed Maturity Plans (FMPs). It also offers tax efficiency via long term capital gains taxation at a lower rate of 20% with 11 years Indexation benefits if invested on or before 31 March, 2023.

The New Fund Offer opens for subscription on January 10th, 2023 and closes on January 19th 2023.

“Since the fund will only invest in Government securities of centre and states maturing around 2033, it provides a good opportunity for a risk aware investor. Moreover, interest rates have increased significantly in 2022. The higher rates provide a better entry level for investors.” says Sandeep Yadav, Head – Fixed Income, DSP Asset Managers.

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