ICICI Prudential Mutual Fund Files Draft for ICICI Prudential CRISIL-IBX AAA Financial Services Index- Jan 2028 Fund

This fund aims to replicate the CRISIL-IBX AAA Financial Services Index, which serves as a benchmark for tracking AAA-rated bonds in the financial services sector. With a fixed maturity date set for January 2028, it allows investors to have a clear timeline for their investment. The ICICI Prudential CRISIL-IBX AAA Financial Services Index—January 2028 Fund seeks to deliver reliable income by investing in AAA-rated bonds from established financial institutions, ensuring low credit risk and predictable returns through its maturity-based approach. By aligning with the CRISIL-IBX AAA Financial Services Index, it guarantees accurate and transparent performance, while the set maturity date of January 2028 offers clarity for investors.

ICICI Prudential Mutual Fund Files for ICICI Prudential CRISIL-IBX AAA Financial Services Index—January 2028 Fund

ICICI Prudential Mutual Fund has made a notable advancement in the fixed-income investment sector by submitting a draft for its newest offering: the ICICI Prudential CRISIL-IBX AAA Financial Services Index—January 2028 Fund. This target maturity fund (TMF) aims to provide investors with reliable and steady returns while leveraging the advantages of high-credit-quality assets.

Target Maturity Fund (TMF)

A Target Maturity Fund (TMF) is a distinctive type of debt fund that features a specific maturity date, combining elements of fixed deposits and debt mutual funds. These funds primarily invest in bonds that are set to mature around the same time as the fund itself, providing a reliable return for investors. Once the maturity date is reached, the fund is closed, and the returns are distributed. TMFs present several key advantages, including predictable returns based on the estimated yield-to-maturity (YTM) provided at the time of investment. They are also tax-efficient, as holding the fund for over three years allows for long-term capital gains tax treatment with indexation benefits. Furthermore, TMFs generally invest in high-quality bonds, which reduces credit risk, making them a safer choice for conservative investors who prioritize stability and dependability in their fixed-income investments.

Conclusion

The ICICI Prudential CRISIL-IBX AAA Financial Services Index—January 2028 Fund represents an exciting enhancement to the expanding collection of target maturity funds in India. It provides an attractive combination of strong credit quality, tax advantages, and dependable returns.

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.