IDFC CRISIL IBX Gilt June 2027 Index Fund – Regular/Direct Plan – Growth
IDFC CRISIL IBX Gilt June 2027 Index Fund is a mutual fund investment option offered by IDFC Mutual Fund. The fund aims to provide returns that closely correspond to the total returns of the underlying index, CRISIL IBX Gilt June 2027 Index. The Fund is benchmarked against the CRISIL IBX Gilt June 2027 Index. The fund is offered in both regular and direct plan options with the growth option.
The regular plan option is for investors who want to invest through a financial advisor or distributor and comes with a higher expense ratio. The direct plan option is for investors who want to invest directly with the fund house and has a lower expense ratio. The growth option means that the fund does not pay dividends and instead, the returns are reinvested to grow the value of the investment.
The fund invests in government securities that have a maturity of June 2027. This means that the fund invests in bonds issued by the government that will mature in June 2027. The fund aims to provide investors with an investment opportunity in government securities with a medium to long term investment horizon.
Please note that mutual funds are subject to market risks, please read the offer document carefully before investing.
Additionally, the IDFC CRISIL IBX Gilt June 2027 Index Fund is a passive investment option, which means that it tracks the performance of the underlying index and does not engage in active fund management. This can provide investors with a low-cost investment option and reduces the risk associated with active fund management. The fund is ideal for investors who have a medium to long-term investment horizon, are looking for a low-cost investment option, and are comfortable with the risks associated with investing in government securities.
It’s important to note that investing in government securities carries a lower credit risk as compared to corporate bonds, however, it’s subject to interest rate risk. It’s also important to understand that the performance of the fund will be dependent on the interest rate movements in the economy. An increase in the interest rate will lead to a fall in the bond prices and vice versa.
It is also important to note that the Fund’s NAV will fluctuate based on the performance of the underlying securities in the portfolio. The NAV of the scheme would be affected by the changes in interest rates, credit spreads, and other factors that influence the prices of the underlying securities.
It is advisable to consult with a financial advisor before investing in the fund to understand if it aligns with your investment goals and risk appetite.
RETURNS (NAV as on 20th January, 2023)
| Period Invested for | ₹10000 Invested on | Latest Value | Absolute Returns | Annualised Returns | Category Avg | Rank within Category |
|---|---|---|---|---|---|---|
| 1 Week | 13-Jan-23 | 9997.80 | -0.02% | – | 0.23% | 225/328 |
| 1 Month | 20-Dec-22 | 10064.40 | 0.64% | – | -0.86% | 68/325 |
| 3 Month | 20-Oct-22 | 10259.10 | 2.59% | – | 2.79% | 147/300 |
| 6 Month | 20-Jul-22 | 10336.20 | 3.36% | – | 7.72% | 192/248 |
| YTD | 30-Dec-22 | 10061.70 | 0.62% | – | 0.25% | 88/327 |
| 1 Year | 20-Jan-22 | 10259.60 | 2.60% | 2.60% | 2.10% | 102/202 |
| Since Inception | 23-Mar-21 | 10729.80 | 7.30% | 3.92% | 7.27% | 169/296 |
Returns Calculator Detailed Returns Analysis
SIP RETURNS (NAV as on 20th January, 2023)
| Period Invested for | ₹1000 SIP Started on | Investments | Latest Value | Absolute Returns | Annualised Returns |
|---|---|---|---|---|---|
| 1 Year | 20-Jan-22 | 12000 | 12307.88 | 2.57 % | 4.76 % |
Risk Factors
While the IDFC CRISIL IBX Gilt June 2027 Index Fund aims to provide returns that closely correspond to the total returns of the underlying index, it is important to understand that investing in this fund carries certain risks. Some of the key risk factors to consider include:
- Interest Rate Risk: As the fund invests in government securities, it is subject to interest rate risk. An increase in interest rates can lead to a fall in bond prices and vice versa. This can impact the value of the fund’s portfolio and subsequently the NAV of the scheme.
- Credit Risk: Although the fund invests in government securities, there is still a risk of default or credit risk. This risk is generally lower than investing in corporate bonds.
- Market Risk: The fund’s NAV will fluctuate based on the performance of the underlying securities in the portfolio. Factors such as changes in interest rates, credit spreads, and other market conditions can impact the prices of the underlying securities and subsequently the NAV of the scheme.
- Passive Management: As the fund is a passive investment option, it tracks the performance of the underlying index and does not engage in active fund management. This can limit the fund’s potential for outperformance, but also reduces the risk associated with active fund management.
- Liquidity Risk: The fund may face difficulty in selling certain securities quickly or at a fair value in the event of high redemptions or adverse market conditions.
Investors should carefully consider these risk factors before investing in the IDFC CRISIL IBX Gilt June 2027 Index Fund. It is advisable to consult with a financial advisor to understand if the fund aligns with your investment goals and risk appetite.
Taxation
When investing in the IDFC CRISIL IBX Gilt June 2027 Index Fund, it’s important to understand the tax implications of your investment. Some of the key points to consider include:
- Long-term Capital Gains: If you hold the fund for more than 3 years, any gains from the sale of units will be taxed as long-term capital gains. The current tax rate for long-term capital gains on debt-oriented mutual funds is 20% with indexation benefit, which means that the capital gains will be adjusted for inflation and taxed at a lower rate.
- Short-term Capital Gains: If you hold the fund for less than 3 years, any gains from the sale of units will be taxed as short-term capital gains. The current tax rate for short-term capital gains on debt-oriented mutual funds is added to your income and taxed at your slab rate.
- Dividend Distribution Tax: The fund does not pay dividends, so there will be no dividend distribution tax on the returns from this fund.
- Tax-saving benefit: The investments in the Equity linked savings scheme (ELSS) mutual funds are eligible for tax-saving under section 80C of the Income Tax Act.
It’s important to note that tax laws are subject to change and investors should consult with a tax advisor to understand the implications of their investment in the IDFC CRISIL IBX Gilt June 2027 Index Fund.
Overall, IDFC CRISIL IBX Gilt June 2027 Index Fund is a low-cost investment option that aims to provide returns that closely correspond to the total returns of the underlying index, CRISIL IBX Gilt June 2027 Index. It is a passive investment option and suitable for investors who have a medium to long-term investment horizon, are looking for a low-cost investment option, and are comfortable with the risks associated with investing in government securities. However, it’s important to consider the risks, tax implications and consult with a financial advisor before investing.
Expense Ratio
The expense ratio is an important factor to consider when investing in the IDFC CRISIL IBX Gilt June 2027 Index Fund. The expense ratio is the annual fee that the fund charges to cover its operating expenses such as management fees, custodial fees, and other administrative costs.
The expense ratio of regular plan of the IDFC CRISIL IBX Gilt June 2027 Index Fund is higher than that of the direct plan. The direct plan has a lower expense ratio as it is offered directly by the fund house and does not involve any distribution or commission costs. The expense ratio of the direct plan is lower as it is offered directly by the fund house and does not involve any distribution or commission costs.
It’s important to understand that a higher expense ratio can eat into your returns and lower your overall investment returns. So, if you are looking for a low-cost investment option, the direct plan may be more suitable for you.
Additionally, it’s important to note that the expense ratio for the fund may vary depending on different factors, such as the size of the fund, the type of securities held in the portfolio, and the complexity of the fund’s investment strategy. So, it’s important to review the expense ratio of the fund before making an investment decision.
In conclusion, the expense ratio is an important factor to consider when investing in the IDFC CRISIL IBX Gilt June 2027 Index Fund. The direct plan has a lower expense ratio as it is offered directly by the fund house and does not involve any distribution or commission costs. Investors should compare the expense ratios of different funds before making an investment decision to ensure they are getting the best value for their money.
FAQ
Q: What is the IDFC CRISIL IBX Gilt June 2027 Index Fund?
A: The IDFC CRISIL IBX Gilt June 2027 Index Fund is a mutual fund investment option offered by IDFC Mutual Fund. The fund aims to provide returns that closely correspond to the total returns of the underlying index, CRISIL IBX Gilt June 2027 Index. The Fund is benchmarked against the CRISIL IBX Gilt June 2027 Index.
Q: What is the investment objective of the IDFC CRISIL IBX Gilt June 2027 Index Fund?
A: The fund invests in government securities that have a maturity of June 2027. This means that the fund invests in bonds issued by the government that will mature in June 2027. The fund aims to provide investors with an investment opportunity in government securities with a medium to long term investment horizon.
Q: What are the risks associated with investing in the IDFC CRISIL IBX Gilt June 2027 Index Fund?
A: The fund is subject to interest rate risk, credit risk, market risk, liquidity risk and passive management risk. Interest rate risk occurs when interest rates rise, the bond prices fall and vice-versa. Credit risk is the risk of default or non-payment by the issuer. Market risk is the risk of loss due to changes in the value of underlying securities. Liquidity risk is the risk of not being able to sell certain securities quickly or at a fair value in the event of high redemptions or adverse market
