The new fund offer or NFO of the scheme is open for subscription and will close on August 12. The scheme will reopen for sale and repurchase within five business days from the date of allotment.
The investment objective of the scheme is to generate returns corresponding to the total returns of the securities as represented by the CRISIL 10 Year Gilt Index before expenses, subject to tracking errors. The creation unit size for the scheme shall be 25,000 units and in multiples thereof.
The scheme will be benchmarked against CRISIL 10 Year Gilt Index and will be managed by Bhupesh Bameta, Sanjay Godambe, and Vighnesh Gupta The minimum investment amount is of Rs 1,000 and in multiples of Rs 100 thereafter. The maximum total expenses ratio (TER) permissible under Regulation 52 (6) (c) is upto 1%.
The scheme will allocate 95-100% assets in government securities, 0-5% in t-bills, cash and cash equivalents. The scheme is a passively managed ETF which will devise an investment approach to track the CRISIL 10 Year Gilt Index, subject to tracking error. The scheme will invest at least 95% of its total assets in the government securities. Accordingly, the scheme will invest in securities in line with the benchmark index of the scheme.
The scheme shall be considered to be replicating the underlying index, provided the duration of the portfolio of the scheme replicates the duration of the underlying index within a maximum permissible deviation of +/- 10%. The scheme shall be considered replicating a Constant Maturity index may invest in securities with residual maturity within +/- 10% of maturity range of the index.The scheme is suitable for investors who are seeking income through exposure to gilt securities over a long term and want an-open ended debt ETF that seeks to track CRISIL 10 year gilt index.