NFO Alert: Aditya Birla Sun Life Mutual Fund launches CRISIL-IBX Financial Services 3 to 6 Months Debt Index Fund

Aditya Birla Sun Life Mutual Fund has launched Aditya Birla Sun Life CRISIL-IBX Financial Services 3 to 6 Months Debt Index Fund, an open-ended constant maturity index fund tracking the CRISIL-IBX Financial Services 3 to 6 Months Debt Index with relatively low interest rate risk and credit risk.

The new fund offer or NFO of the scheme is open for subscription and will close on December 16. The scheme will reopen for continuous sale and repurchase within five business days from the date of allotment.

Also Read | Taking Stock: Mutual fund SIP investors made up to 60% return in 2024


The investment objective of the scheme is to generate returns corresponding to the total returns of the securities as represented by the CRISIL-IBX Financial Services 3 to 6 Months Debt Index before expenses, subject to tracking errors.

The scheme will be benchmarked against the CRISIL-IBX Financial Services 3 to 6 Months Debt Index. The scheme will be managed by Harshil Suvarnkar and Sanjay Pawar.

The minimum amount for lumpsum investment is Rs 1,000 and in multiples of Re 1 thereafter. For the monthly Systematic Investment Plan (SIP), the minimum amount is Rs 1,000 and in multiples of Re 1 thereafter. The minimum additional purchase amount is Rs 1,000 and in multiples of Re 1 thereafter.

The scheme will allocate 95-100% in instruments forming part of the CRISIL-IBX Financial Services 3 to 6-month debt index and 0-5% in debt, money market instruments and cash and cash equivalent.

Also Read | Year-ender 2024: 14 large cap mutual funds offer over 20% return in 2024

The scheme follows a passive investment strategy. The scheme will replicate income over the constant maturity period of its underlying index i.e., CRISIL-IBX Financial Services 3 to 6 Months Debt Index, subject to tracking errors. The maximum Total expenses ratio (TER) permissible under Regulation 52 (6) (c) is up to 1%.

In line with the constant maturity profile of the underlying Index, the scheme followsa perpetual structure, wherein the scheme would be rebalanced as per the set frequency and remain in line with the maturity profile.

The scheme is suitable for investors who are seeking income through exposure over the shorter term maturity on the yield curve and want investment in an open ended Constant Maturity Index Fund that seeks to track CRISIL-IBX Financial Services 3 to 6 months debt index.