The index will track the performance of AAA CPSEs and State Development Loans (SDL) securities maturing between 1 November 2024 and 30 April 2025. It will mature on 30 April 2025.
It will mature on 30 April 2025.
rating agency CRISIL (Crisil) has launched a new Target Maturity Index, CRISIL IBX 70:30 CPSE Plus SDL Index – April 2025 (CRISIL IBX 70:30 CPSE Plus SDL Index – April 2025). Index AAA maturing between 1 November 2024 and 30 April 2025 CPSEs (Central Public Sector Enterprises) and State Development Loans (SDL) will track the performance of the securities. It will mature on 30 April 2025. This is the third such index launched by CRISIL on Target Maturity Fund. The earlier two gilt markets track the maturity period of 2027 and 2028. Asset managers can now create passive products that track the index.
CRISIL LIMITED Jiju Vidyadharan, Senior Director Funds & Fixed Income Research, said, “The index further underscores CRISIL’s commitment to support growth in the capital markets. Especially in India where passive investment products are growing rapidly. This will serve as a reference for an upcoming index-linked fund or an exchange-traded fund.
According to Crisil, the company has given due attention to liquidity while defining the criteria for selection of components in the index to increase the recapability. This makes the target date passive product more attractive with a current curve yield of four years (1.21% for AAA PSUs and 1.57% for SDLs as on December 31, 2021) in a year, it added.
more than 100 indexes
CRISIL currently manages more than 100 customized and standard indices, which are used by mutual funds, insurance companies, provident funds and investors in the Indian markets, the company said. Though most of these indexes follow a fixed maturity, the target date index fund will act as a reference for the upcoming target date index.
Some of the new indices launched by CRISIL include CRISIL Broad Based Long Term Gilt Index, CRISIL Broad Based Medium Term Gilt Index, CRISIL Broad Based Short Term Gilt Index. (CRISIL Broad Based Short Term Gilt Index), CRISIL Broad Based Gilt Index and CRISIL Money Market Index- Insurance.
Investment in equity mutual funds crossed 25 thousand crores in December
Capital inflows into equity mutual funds more than doubled to Rs 25,000 crore in December. The reason for this is the increasing trend towards regular investment plans i.e. SIPs and capital inflows into the multi-cap fund category.