This index fund offers a balanced investment in AAA-rated PSU bonds and State Development Loans, maturing in September 2026. Ideal for conservative investors seeking stable returns with moderate risk, it combines safety with growth potential. The fund aims to provide regular income through dividends while maintaining capital preservation. With a focus on quality government-backed securities, it’s a smart choice for those looking to diversify their portfolio and secure their financial future.

Invests in AAA-rated PSU bonds and SDLs
Maturity date: September 2026
Ideal for conservative investors
Focus on regular income and capital preservation
Diversifies investment portfolio
Managed by a trusted financial institution

Investment Thesis

Nippon India's fund offers a robust investment avenue with a strong promoter backing, ensuring credibility and trust. The growing digital services sector enhances the fund's growth potential. Additionally, its attractive valuation compared to peers makes it a compelling choice for investors seeking stability and returns.

Strong backing from Nippon Life, a reputable financial institution.
Exposure to high-quality AAA-rated PSU bonds and SDLs ensures lower risk.
Digital services growth provides a favorable macroeconomic backdrop.
Attractive valuation compared to similar funds enhances investment appeal.
Ideal for conservative investors seeking stable returns in a volatile market.

Opportunity vs Risk

Opportunities

Diversified exposure to PSU bonds
Potential for stable income
Long-term investment horizon
Lower volatility compared to equities

Risks ⚠️

Interest rate fluctuations
Credit risk from PSU bonds
Market liquidity concerns
Limited growth potential compared to stocks

Peer Perspective

Nippon India Nifty AAA PSU Bond Plus SDL Index Fund trades at a slight premium compared to peers like HDFC and ICICI bond funds. A rerating could occur with improved credit quality and stable interest rates.

📊 Stock Investment Checklist (100 Points)

Nippon India Nifty AAA PSU Bond Plus SDL - Sep 2026 Maturity 50:50 Index Fund(IDCW) • Updated: 2025-10-01 15:17:53

10

Business
High

The fund is invested in a stable sector but lacks a clear competitive moat.
10

Growth
High

Consistent revenue growth from underlying assets, but limited profit growth.
10

Profitability
High

Moderate ROE and ROCE, but cash flow is stable.
10

Valuation
High

Valuation metrics are in line with peers, indicating fair pricing.
8

Balance
High

Strong balance sheet with low debt levels and good liquidity.
7

Governance
High

Promoter holding is stable, but there are concerns about transparency.
5

Drivers
Good

Limited growth catalysts and potential execution risks.
3

Technicals
Low

Weak market sentiment and low liquidity.

Final Score & Verdict

Score 70 / 100 • Decent

The fund presents a decent investment opportunity with stable returns, but investors should be cautious of limited growth drivers and market sentiment.