Nippon India Nifty G-Sec Sep 2027 Maturity Index Fund – NFO Review

Nippon India Nifty G-Sec Sep 2027 Maturity Index Fund is a passively managed open-ended index fund that will employ an investment approach designed to track the performance of the Nifty G-Sec Sep 2027 Index. Securities that will form part of the scheme portfolio are expected to have in the aggregate, key characteristics of the underlying index in terms of maturity profile and type of securities.

Get your Mutual Funds and Equity portfolio evaluated by a Registered Investment Advisor (RIA) for FREE, but spots are limited. Register now

Investment strategy:

The scheme will follow the Buy and Hold investment strategy in which existing G-Secs will be held till maturity, subject to semi-annual index rebalancing. The portfolio will be rolled down in line with the index; hence incremental investment will be in G-Secs representing the index. In case of maturity of any or all G-Secs that are part of the Scheme portfolio, the maturity proceeds will be deployed in the outstanding security of the same issuer having the longest maturity or remaining portfolio in proportion of existing weight or Treasury bills or Tri-Party Repos on Government securities or Treasury bills, till the scheme “Maturity Date”.

Rebalancing of the underlying securities:

On a semi-annual basis, the index will be screened for compliance with the Norms for Debt Exchange Traded Funds (ETFs)/ Index Funds announced by SEBI vide circular no. SEBI/HO/IMD/DOF2/P/CIR/2022/69 on May 23, 2022. During the semi-annual review, three G-Secs (subject to availability) will be selected based on the eligibility and selection criteria and the weights of all the securities will be reset based on the original weight method.

The investment objective of Nippon India Nifty G-Sec Sep 2027 Maturity Index Fund Regular Growth is to provide investment returns corresponding to the total returns of the securities as represented by the nifty g-sec Sep 2027 index before expenses, subject to tracking errors. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.

Also read : 8 Factors that make Health Insurance inevitable

Basic information about the NFO:

Pros and Risks:

Firstly let’s look at the pros:

  • Relatively safe as compared to Equity and other debt funds since the scheme invests in only G secs.
  • Tax efficient due to mutual fund indexation benefit.
  • Reduction in non-systematic risk like security selection and portfolio manager selection, as the fund, will apply a buy & hold strategy and follow the index.
  • Low cost.

Now, some of the risks involved:

  • Even though it has a relatively low credit risk, it also has a relatively high-Interest rate risk.
  • Investment in Mutual Fund units involves investment risks such as trading volumes, settlement risks, liquidity risks, and default risks including the possible loss of principal.

Index Constituents:

The above constituents may or may not form part of the index in the future                                     

Source: NSE

Get your Mutual Funds and Equity portfolio evaluated by a Registered Investment Advisor (RIA) for FREE, but spots are limited. Register now


Nippon India Mutual Fund is one of India’s leading mutual funds, with Assets under Management of above Rs. 2 lakh crore and above 90 Lakhs folios. NIMF which is one of the fastest-growing mutual funds in India offers investors a well-rounded portfolio of products to meet varying investor requirements. The fund has 2 highly experienced managers as well and since the fund invests mostly in government securities, interest rate risk is the primary risk involved and hence the involved is a moderate risk. We recommend that investors with long term investment horizon, who are looking to take exposure in Government Securities may consider investing in this NFO. .


This article should not be construed as investment advice, please consult your Investment Adviser before making any investment decision.

If you do not have one visit

Also read : Market Outlook – Nov’22 is an award winning personal finance platform. It helps you aggregate all your personal finance accounts like FD, Equity, Mutual Funds, PPF EPF, NPS including, Credit Cards & Loans etc. It's one place where you can track, plan and invest seamlessly. empowers you to invest in zero commission direct plans of mutual funds thereby helping you generate higher on investments. The best part is it comes with a lifetime Free plan.

Switch to direct mutual funds in 3 simple steps, earn 30% more return on your investments. Register to get a FREE myMoneySage account.

You may also like...

error: Content is protected !!