ADITYA BIRLA SUN LIFE CRISIL BROAD BASED GILT ETF NFO

A Broad-Based Gilt ETF: Capturing the Potential of G-secs:

• India Macros vs. G-sec Yields
  Currently, repo rates and G-secs yields are at multi-year high levels to balance growth and inflation. With inflation decreasing, there’s room for monetary easing, making it a good time to lock in high yields.
• Inclusion of G-secs in JPM GBI EM^ Bond Index – Rising FII flows
  G-sec inclusion in the index (up to target allocation of 10%) is set to boost FII inflows, increasing global demand for FAR G-secs.
  ^{^JPMorgan Government Bond Index-Emerging Markets}
• Capital Gain Potential
  As global demand increases, G-sec yields are likely to decrease, creating an opportunity for capital gains on price returns.
• Attractiveness of G-secs
  The anticipated decline in G-sec yields makes it an opportune time to lock in elevated yields and benefit from potential capital gains.
• Broad Based Gilt ETF route to invest in G-secs
  Given the likely increase in demand for FAR securities, a fund focusing on them can enhance investor gains. The returns of the CRISIL Broad-Based Gilt Index closely track those of the JP Morgan IGB FAR Index. An ETF tracking this Broad-Based Gilt Index can be a suitable way to access the current G-sec opportunity.

(source:mutualfund.adityabirlacapital.com)

What are G secs and why invest in them?

• G-secs are debt securities issued by the RBI on behalf of the Government of India as an acknowledgment of money borrowed. They are backed by the central government which gives them sovereign rating.
• Therefore, G-secs being sovereign debt instruments come with negligible credit risk. Their repayment is guaranteed by the Central Government of India.
• Owing to high demand and high trading volumes, G-secs are also highly liquid.
• The current inclusion of Indian G-secs in the JP Morgan Index and likely future inclusion in more global indices creates an opportunity for future capital gains from G-sec investments

(source:mutualfund.adityabirlacapital.com)

ADITYA BIRLA SUN LIFE CRISIL BROAD BASED GILT ETF NFO Details:

(source:amfiindia)

ADITYA BIRLA SUN LIFE CRISIL BROAD BASED GILT ETF NFO Risk-o-meter:

(source:mutualfund.adityabirlacapital.com)