Current context: Edelweiss Asset Management Limited has recently introduced the "Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund". This is India's first passive short-duration index fund and is open for subscription from January 27th to February 10th, 2023.
- This cost-effective index fund is ideal for investors who want to incorporate fixed income into their asset allocation strategy.
- Edelweiss Asset Management Limited is authorised by the Securities and Exchange Board of India and operates under the Companies Act of 1956.
- The Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund is an open-ended index fund that will invest 50% in Indian Government Bonds and 50% in State Development Loans, with some tracking errors.
- It will follow the Edelweiss CRISIL IBX 50:50 Gilt Plus SDL September 2028 Index Fund and is designed to invest in a diverse portfolio of government bonds and state loans.
- The government security component will consist of the most liquid government bonds with a minimum outstanding of 10,000 crores and a duration of 1 to 5 years.
- The State Development Loan portion will be built by selecting the most liquid state issuers and international securities identification numbers with a minimum outstanding of 500 crores.
- The index will be rebalanced every quarter, and the minimum investment amount is 5,000 rupees. During the NFO period, the NAV is restricted to 10 rupees per unit.
- The scheme may also invest in money market instruments such as Treasury Bills, Tri-Party Repos, and other similar instruments as defined by the Reserve Bank of India to meet regulatory liquidity requirements.
Question:
Q.1 What is the Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund?
a. India's first active short-duration index fund
b. India's first passive long-duration index fund
b. India's first passive long-duration index fund
c. India's first passive short-duration index fund
d. India's first active long-duration index fund
