Invesco Mutual Fund launches two new Target Maturity Index Funds

A relatively high-interest rate risk and relatively low credit risk) and Invesco India Nifty G-sec Sep 2032 Index Fund (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).

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.

Speaking at the launch, Invesco Mutual Fund Chief Investment Officer Taher Badshah 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, he said.

“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,” he said.

Invesco Mutual Fund Head of Fixed Income Vikas Garg 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, he said.

Krishna Cheemalapati and Vikas Garg are the dedicated Fund Managers for both Index funds.

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.