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Edelweiss CRISIL PSU Plus SDL 50:50 Oct 2025 NFO

  • Rudri Rawell
  • Mar 10 2022
  • 7 minutes
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Edelweiss Asset Management Limited recently announced the NFO of a new target maturity index fund named Edelweiss Crisil PSU plus SDL 50:50 Oct 2025. This is an open-ended target maturity index fund that will primarily invest in the constituent stocks of Crisil [IBX] 50:50 PSU + SDL Index – Oct 2025. The scheme will invest in AAA-rated PSU Bonds and SDLs that have maturities on or before October 2025. The NFO will be open for subscription from March 3, 2022, up to March 8, 2022.

Investment objective of the fund

The investment objective of the scheme ‘Edelweiss Crisil PSU plus SDL 50:50 Oct 2025’ is to track the performance of CRISIL [IBX] 50:50 PSU + SDL Index – October 2025. It will focus on investing in AAA-rated PSU Bonds and SDLs with maturity dates on or before October 2025. The investment composition is subject to tracking errors. 

Why should you apply for the NFO?

Tax-efficiency: The entire pool of the fund will be invested in AAA-rated PSU bonds and State Development Loans (SDL) that mature at least six months before the maturity date of the scheme. At maturity, the scheme will give investors their entire investment proceeds. These will be taxed at 20% post-indexation as the returns will be considered as Long term capital gains. Therefore, the scheme offers higher tax efficiency as compared to traditional mutual fund options.

  • Benefits of passive management: Since this debt-index fund will invest in the constituent stocks of the CRISIL [IBX] 50:50 PSU + SDL index – October 2025, the fund’s expense ratio is expected to be considerably low. With this investment strategy, the fund will try to eliminate fund manager bias as far as investment selection is concerned.
  • Moderate risk: With a passive investment approach primarily in debt securities, this index fund can offer a moderate risk-reward opportunity to investors. Investors who are looking for relatively lower risk levels can consider investing in this fund.
  • Easy investment: It is easy to invest in this index fund NFO through the Finity app. Since this is a passive debt fund, investors can avoid the hassle of regular portfolio monitoring, since the fund mirrors the composition of the benchmark index.
  • Aids financial planning: Since the index fund offers target maturity investment in avenues that offer stable returns, it can aid the financial planning of investors who wish to meet their financial goals at specific intervals.
  • Acts as an alternative to Fixed Deposits: This fund can act as an alternative to investment in Fixed Deposits as it has target maturity and is also more tax efficient than a FD.

Fund details 

Scheme nameNFO details for Edelweiss CRISIL PSU Plus SDL 50:50 Oct 2025
Type of SchemeAn open-ended target maturity index fund that aims to track Crisil [IBX] 50:50 PSU + SDL Index – October 2025.
Category of the schemeIndex fund
BenchmarkCrisil [IBX] 50:50 PSU + SDL Index – October 2025
Plan optionsGrowth
Fund ManagerDhawal DalalRahul Dedhia
Exit LoadNot known
Minimum InvestmentRs. 5,000 and in multiples of Re. 1/- thereafter
Expense RatioNot known
NFO Period03 Mar 2022 – 08 Mar 2022

Where can you invest in the NFO?

Head over to the Finity App to invest in this NFO. 

FAQs

1. What is NFO?

 NFO (New Fund Offer) is launched by the Asset Management Companies (AMCs) to generate funds for launching a new mutual fund. These funds are then pooled to buy the shares or other securities as per the fund’s mandate or the guidelines based on which the fund is launched. NFOs are like IPOs where all the relevant details of the funds are provided at the time of their launch and the units of the fund are usually set at Rs. 10 per unit for a subscription. SEBI guidelines allow the NFOs to be active for a maximum period of 30 days following which the units of the fund are traded based on their daily NAV.

2. What are the types of NFOs?

NFOs, at the time of their launch, are launched in two categories namely close-ended funds and open-ended funds. The details of each type of fund are mentioned below.
Open-ended funds
The majority of mutual funds are launched as open-ended funds. Investors can subscribe to the fund at the nominal rate (usually Rs. 10 per unit) during the NFO period. After the NFO period, when the units are traded based on the daily NAV, the investors stand to gain huge capital gains depending on the performance of the fund.
Close-ended funds
Close-ended funds, on the other hand, do not allow the investors to subscribe to the fund after the NFO period is closed. 

3. What are the points to consider before investing in NFOs?

Investing in NFOs is a very good opportunity to maximize the returns as the units can be subscribed at nominal rates and the returns are potentially higher based on the prevailing NAV at the time of redemption. However, there are several points that need to be considered while subscribing to an NFO. Some of such points are highlighted below. 

a)Track record of the AMC
NFOs are offered for the new mutual fund so no proven track record can be reviewed by investors to make an informed investment decision. The investors have to therefore rely on the reputation of the AMC and other details mentioned in the NFO to make an investment decision. 

b)Expense ratio (if mentioned)
NFOs need a good amount of publicity to make the investors aware of the fund and the investment opportunity. It is therefore essential for the investors to check the expense ratio of the fund and ensure that it does not outweigh the net gains. 

c)Check if the fund is in correlation to the existing portfolio
Recently there have been many NFOs in the market that investors can choose from. However, while selecting the fund the investors must check if the fund is not similar to an existing fund in their portfolio. For example, if the fund is a large-cap fund and the investor already has one or two similar funds in their portfolio, investing in another will not add much value to the net returns or the diversification of the portfolio. On the other hand, many NFOs can be sector-specific or country-specific. In such a case, investors have to check if the fund is in line with other factors like their risk-return profile and investment goals. 

d)Review the SID carefully
Reviewing the SID (Scheme Information Document) is a crucial step that should not be missed by investors while investing in NFOs. It contains all the relevant information about the fund managers, their qualifications, and experience which is crucial for the funds’ performance. Other relevant information includes the investment profile of the fund, target sectors or securities, benchmark index, asset allocation ratio, etc. This helps the investors understand the returns expectation of the fund as well as the target investments where the fund will invest the pooled funds. Investors having a risk-return profile in line with that of the fund can thus invest in such funds. 

4. How to invest in NFOs?

 Investment in NFOs can be done through two main routes i.e., the online or offline modes. The details of the same are mentioned below.

a)Online mode
The online mode of investment is suitable for investors already having a Demat account and a trading account. Investors can simply select the NFO and invest by selecting the number of units to invest and paying for the same through online payment modes available on the platform.  

b)Offline mode
The offline mode of investment in NFOs is through registered brokers and distributors. Investors can contact their brokers and distributors providing them with the details of the amount to be invested and they can invest in the selected NFOs on their behalf. Investors can make hassle-free investments through such modes as all the necessary forms to be filled and the formalities to be met are looked after by these entities giving investors the benefit of ease of investment. The charges for such services are nominal when compared to the potentially high returns. 

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