NFO Alert: ICICI Prudential Mutual Fund Launches CRISIL-IBX Financial Services 3-6 Months Debt Index- G

ICICI Prudential Mutual Fund has launched a new debt index fund, the ICICI Prudential CRISIL-IBX Financial Services 3-6 Months Debt Index Fund. This is an open-ended passive fund that aims to track the CRISIL-IBX Financial Services 3-6 Months Debt Index, investing in high-rated debt instruments within the financial services sector.

NFO Details

The New Fund Offer (NFO)  details are as follows:

• NFO Dates: March 10, 2025 – March 18, 2025
• Fund Type: Open-ended debt index fund
• Category: Other schemes – Income Funds
• Risk Level: Moderately Low
• Minimum Investment: ₹1,000
• Incremental Investment: ₹500
• Exit Load: Nil
• NAV Calculation: Daily
• Fund Managers: Darshil Dedhia and Nikhil Kabra

The fund aims to replicate the performance of the CRISIL-IBX Financial Services 3-6 Months Debt Index, subject to tracking errors. It does not assure or guarantee returns.

Investment Strategy

The scheme follows a passive investment strategy and will be periodically rebalanced to align with its maturity profile. The fund will invest 95%-100% of its assets in AAA-rated debt instruments issued by financial sector entities with maturities between three to six months. The remaining 0-5% may be invested in government securities (up to one year), Treasury Bills, and Tri-Party Repos for liquidity management.

The fund does not have an entry or exit load, and its NAV will be calculated on a daily basis.

Portfolio Composition

The scheme will maintain portfolio characteristics in line with the benchmark index, including factors such as:

• Modified Duration
• Weighted Average Maturity
• Aggregate Credit Ratings
• Yield-to-Maturity (YTM)

The issuer weight in the fund will generally reflect the index, adjusted based on security availability.

Structure and Management

The scheme has a perpetual structure, meaning it will be rebalanced at a set frequency to maintain its maturity profile. As a passively managed fund, it will aim to closely track the underlying index while managing tracking errors.

Conclusion

The fund provides exposure to short-term, high-rated financial sector debt instruments with a passive investment approach. This fund offers a moderately low-risk debt option with periodic rebalancing and no exit load.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.