Mirae Asset Nifty SDL June 2028 Index Fund
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Business Overview
The Mirae Asset Nifty SDL June 2028 Index Fund is a passive investment vehicle designed to track the performance of state development loans (SDLs) in India. Ideal for conservative investors seeking stable returns, this fund offers exposure to government-backed securities with lower risk. It matters for those looking to diversify their portfolio while benefiting from fixed income investments. With a focus on long-term growth, this fund is a strategic choice for wealth accumulation.
- Passive investment in state development loans
- Ideal for conservative investors
- Offers stable, long-term returns
- Diversifies fixed income portfolio
- Government-backed securities for lower risk
- Strategic choice for wealth accumulation
Investment Thesis
Mirae Asset Nifty SDL June 2028 Index Fund stands out due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. This fund offers a strategic opportunity for investors seeking steady returns with a focus on government securities.
- Backed by Mirae Asset, a reputable and established financial services group.
- Capitalizes on the growing demand for digital services in the Indian economy.
- Offers competitive valuations, making it an attractive option against similar funds.
- Focuses on government securities, ensuring lower risk and stable returns.
- Ideal for long-term investors looking for a reliable income stream.
Opportunity vs Risk
- Exposure to government securities
- Potential for stable returns
- Diversification in fixed income
- Low expense ratio
- Long-term investment horizon
- Interest rate fluctuations
- Credit risk of state bonds
- Market volatility
- Liquidity concerns
- Inflation impact on returns
Peer Perspective
Mirae Asset Nifty SDL June 2028 Index Fund trades at a slight premium compared to peers like ICICI Pru SDL Fund and HDFC SDL Fund. A rerating could occur with improved margin stability and consistent growth in underlying assets.
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10BusinessHighThe fund invests in state development loans, which are essential for infrastructure and development.
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10GrowthHighConsistent growth in state development loans as states increase borrowing for infrastructure.
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10ProfitabilityHighStable returns expected from SDLs, but lower than equity markets.
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8ValuationHighValuation metrics are reasonable compared to other fixed-income instruments.
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7BalanceHighStrong balance sheet with low default risk in SDLs.
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6GovernanceGoodGood governance practices, but some concerns over state fiscal management.
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5DriversGoodGrowth driven by infrastructure spending, but execution risks exist.
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5TechnicalsGoodMarket sentiment is cautious, with moderate liquidity.