NFO: Kotak Mutual Fund Launches CRISIL-IBX AAA Bond Financial Services Index – Dec 2026 Fund – Direct Plan

Kotak Mahindra Mutual Fund has introduced a new target maturity debt index fund, the Kotak CRISIL-IBX AAA Bond Financial Services Index – Dec 2026 Fund (Direct Plan). This fund aims to provide returns in line with the CRISIL-IBX AAA Financial Services Index – Dec 2026, which comprises AAA-rated bonds from the financial services sector.

Fund Details

The New Fund Offer (NFO) opens on January 31, 2025, and closes on February 10, 2025. The fund is an open-ended target maturity index fund, allowing investors to enter and exit at their convenience. The minimum initial investment amount is ₹100, with no limit on subsequent investments with Moderate risk.

This fund is managed by Abhishek Bisen and the benchmark index for this scheme is the CRISIL-IBX AAA Financial Services Index – Dec 2026. The Registrar & Transfer Agent for this scheme is Computer Age Management Services Ltd. (CAMS).

Investment Strategy

The fund follows a passive investment strategy, meaning it does not actively trade bonds but instead replicates the CRISIL-IBX AAA Financial Services Index – Dec 2026. The focus is on AAA-rated debt instruments from the financial services sector that mature close to December 2026.

By adopting a buy-and-hold approach, the fund minimizes portfolio turnover, reducing transaction costs and ensuring stability. The open-ended nature allows investors flexibility in entering or exiting the scheme while still benefiting from the defined maturity period.

Why Consider This Fund?

For investors looking for a low-risk, predictable investment option, this fund provides a structured approach to fixed-income investing. Since all securities in the portfolio are AAA-rated, credit risk remains minimal, making it a considerable choice for conservative investors.

Additionally, there are no entry or exit loads, making sure that investors can participate in the fund without incurring additional costs. The maturity date in December 2026 provides a clear investment timeline, allowing investors to plan their financial goals accordingly.

Who Should Invest?

This fund is suitable for investors who prefer stability over speculation and want exposure to a high-quality debt portfolio with a fixed maturity. It could be for those planning short- to medium-term financial goals and seeking returns with minimal monitoring.

With its open-ended structure, low costs, and high-rated securities, this fund serves as a flexible fixed-income investment option for those prioritizing safety and predictability in their portfolios.

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 are subject to market risks, read all scheme-related documents carefully.