Aditya Birla Sun Life Mutual Fund launches CRISIL-IBX AAA NBFC-HFC Index-Sep 2026 Fund

Aditya Birla Sun Life Mutual Fund has launched Aditya Birla Sun Life CRISIL-IBX AAA NBFC-HFC Index-Sep 2026 Fund, an open-ended fund with moderate interest rate risk and relatively low credit risk. It is a Target Maturity Fund investing in India’s top NBFCs & HFCs.

The new fund offer or NFO of the scheme is open for subscription and will close on October 7.

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The investment objective is to generate returns corresponding to the total returns of the securities as represented by the CRISIL-IBX AAA NBFC-HFC Index – Sep 2026 before expenses, subject to tracking errors.

The scheme will be benchmarked against CRISIL-IBX AAA NBFC-HFC Index – Sep 2026. It will be managed by Harshil Suvarnkar and Vighnesh Gupta.

It will allocate 95-100% in instruments forming part of the CRISIL-IBX AAA NBFC-HFC Index – Sep 2026 and 0-5% in debt and money market instruments (including cash and cash equivalent).

“In an environment where stability and quality are paramount, the target maturity fund investing in India’s top NBFCs & HFCs offers a robust investment opportunity. Corporate bond yields and liquidity are notably well-balanced at the 2 and 3-year maturities, offering a timely investment opportunity. If yields decline going forward, investors could benefit from potential price appreciation, particularly in high-quality papers. With attractive yields and a favorable risk-reward profile, a roll-down strategy is particularly well-suited to the current interest rate environment,” said A. Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life AMC.

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The fund's investment approach will appeal to investors seeking a passive debt strategy with an investment horizon ranging from 3 to 24 months with yields in India expected to remain attractive along with a relatively stable credit risk profile.

The fund will focus on a buy & hold strategy and the portfolio will comprise 100% AAA-rated corporate bonds in the NBFC and HFC space, offering investors high-quality debt exposure. Rebalancing will take place semi-annually in April and October until the index maturity on 30th September, 2026, unless bonds become ineligible. This strategy offers a structured approach to long-term investment in the robust NBFC and HFC sectors.