Aditya Birla Sun Life Mutual Fund Launches CRISIL-IBX AAA Financial Services Index – Sep 2027 Fund

Aditya Birla Sun Life Mutual Fund has introduced a new target maturity index fund: the Aditya Birla Sun Life CRISIL-IBX AAA Financial Services Index – Sep 2027 Fund. The New Fund Offer (NFO) opens for subscription on November 4, 2024, and will close on November 12, 2024. This fund will track the CRISIL-IBX AAA Financial Services Index – Sep 2027, offering investors a relatively low credit risk with moderate interest rate exposure.

Key Details

The fund offers both Regular and Direct plans with options for Growth and Income Distribution cum Capital Withdrawal (IDCW). Designed as an open-ended index fund, it aligns its returns with the CRISIL-IBX AAA Financial Services Index – Sep 2027, capturing the returns of the index’s underlying securities, subject to tracking error.

Managed by Harshil Survankar and Vighnesh Gupta, the scheme requires a minimum investment of Rs.1,000 for a lump sum, with additional investments in multiples of Rs.100. Systematic Investment Plans (SIPs) are also available, beginning at Rs.1,000 monthly or weekly, with increments of Re.1 thereafter.

Investment Structure & Risk

The fund’s portfolio will primarily consist of 95-100% AAA-rated instruments from the CRISIL-IBX AAA Financial Services Index – Sep 2027. A minor portion, 0-5%, will be allocated to debt and money market instruments, including cash equivalents. This allocation will help deliver consistent returns over the target maturity period, with a moderate risk level.

Charges & Loads

For investors, there’s no entry or exit load on this scheme. However, as per SEBI guidelines, a stamp duty of 0.005% will apply on all purchases, including lump sums, SIPs, STPs, and dividend reinvestments.

Conclusion: Aditya Birla Sun Life CRISIL-IBX AAA Financial Services Index – Sep 2027 Fund is a considerable choice for investors looking to align their returns with a stable, AAA-rated index over a specified maturity period. The scheme’s passive management approach is designed to offer returns in line with its underlying index, appealing to investors seeking income stability through the targeted maturity period of September 2027.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.