Aditya Birla Sun Life launches Crisil IBX Gilt June 2027 Index Fund

Aditya Birla Sun Life Mutual Fund has launched Aditya Birla Sun Life Crisil IBX Gilt June 2027 Index Fund, an open-ended Target Maturity Index Fund tracking the CRISIL IBX Gilt Index – June 2027 with a moderate interest rate risk and relatively low credit risk.

The new fund offer or NFO of the scheme is currently open for subscription and will close on June 4. The scheme will reopen for continuous sale and repurchase within five business days from the date of allotment.

The investment objective of the scheme is to generate returns corresponding to the total returns of the securities as represented by the CRISIL IBX Gilt Index – June 2027 before expenses, subject to tracking errors.


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In line with the maturity profile of the underlying index, the maturity of the scheme will be June 30, 2027.

The scheme will offer regular and direct plans with growth and IDCW options. The minimum amount of investment, additional purchase, and repurchase is Rs 1,000 and in multiples of Re 1 thereafter. The scheme will be benchmarked against CRISIL IBX Gilt Index – June 2027. Bhupesh Bameta and Sanjay Godambe are the managers of the scheme.

This fund will invest 95-100% in instruments forming part of the CRISIL IBX Gilt Index – June 2027 and 0-5% in debt/money market instruments, cash and cash equivalent.

The scheme follows a passive investment strategy. It will replicate income over the target maturity period of its underlying index i.e. CRISIL IBX Gilt Index – June 2027, subject to tracking errors. Accordingly, it will invest in securities in line with the benchmark index of the scheme.

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The duration of the portfolio of the scheme replicates the duration of the underlying index within a maximum permissible deviation of +/-10%. The following norms for permissible deviation in duration shall apply:

1. For a portfolio with residual maturity of greater than 5 years: Either +/-6 months or +/-10% of duration, whichever is higher.
   
2. For a portfolio with residual maturity of up to 5 years: Either +/-3 months or +/-10% of duration, whichever is higher.
   
3. However, at no point in time, the residual maturity of any security forming part of the portfolio shall be beyond the target maturity date of the Scheme.
   

The scheme is suitable for investors seeking income over the target maturity period and looking for an open-ended Target Maturity Index Fund that seeks to track CRISIL IBX Gilt Index – June 2027.

The principal invested in the scheme will be at “moderate risk” compared to the principal invested in benchmark which will be at “low to moderate” risk.