Baroda BNP Paribas NIFTY SDL 2026 Fund Marks 2nd Anniversary
Mumbai, April 30, 2025: Baroda BNP Paribas Mutual Fund is marking the second anniversary of its fixed income index offering — the Baroda BNP Paribas NIFTY SDL December 2026 Index Fund, with the scheme delivering a strong 8.05% return over the past year as of 31st March 2025, suggesting its position as a potential option for investors seeking low-risk, sovereign-backed debt exposure.”
Managed by Gurvinder Singh Wasan, CFA and Vikram Pamnani both Senior Fund Managers – Fixed Income, the fund aims to provide predictable and tax-efficient returns by passively tracking the NIFTY SDL December 2026 Index. The index comprises State Development Loans (SDLs) that are eligible for Statutory Liquidity Ratio (SLR) investments by banks, with holdings across five states of Gujarat, Haryana, Maharashtra, Bihar and Tamil Nadu. accounting for almost 80% of the schemes net assets
The fund is particularly well-positioned to benefit from potential downward trajectory in yields as experts believe there would be further rate cuts and liquidity easing measures leading to further downward bias on rates and contraction of spreads.
Baroda BNP Paribas Mutual fund believes that better fiscal health of states and potentially lower market borrowings vs budgeted numbers will support the spreads that SDL’s enjoy over central government loans. The residual maturity of this fund is now approximately 1.5years. Investors investing in this fund get a credit risk free portfolio (100% sovereign) with potential returns higher than the RBI’s repo rate
By investing exclusively in SDLs — which come with an implicit sovereign guarantee — the fund ensures zero default risk, making it an attractive avenue for conservative investors and institutions seeking safety with stable returns. Financial planners say that target maturity funds such as this one are suitable for investors looking for predictable income and with a moderate risk appetite and whose investment horizon matches the maturity date of the fund.
As it celebrates two years of consistent performance and growing investor trust, the Baroda BNP Paribas NIFTY SDL December 2026 Index Fund continues to demonstrate the value of target maturity passive debt strategies.
