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

Kotak Mahindra Mutual Fund has introduced a New Fund Offer (NFO) under the debt target maturity category, the Kotak CRISIL-IBX AAA Financial Services Index – Dec 2026 Fund (Regular-Growth). 

This open-ended target maturity index fund is to track the performance of AAA-rated financial services sector bonds that mature around December 2026. It offers a structured investment option with defined maturity, making it a considerable choice for investors looking for stable returns over a specific timeframe.

Key Investment Details

This target maturity fund follows a debt-based investment approach with a moderate risk profile. It falls under the income fund sub-category and operates as an open-ended scheme, allowing investors to enter or exit at any point. The fund’s exit load is NIL and NAV is calculated daily.

Investment Objective

The fund aims to deliver returns in line with the CRISIL-IBX AAA Financial Services Index – Dec 2026. This index is to track the performance of AAA-rated issuers within the financial services sector, all maturing near the fund’s target date. The objective is to minimize reinvestment risk while offering stability through high-credit-quality instruments. However, there is no guarantee of achieving the desired returns, as market conditions and expenses may affect performance.

Since the portfolio consists only of AAA-rated bonds, the fund offers a lower credit risk alternative within the debt segment. Investors seeking a structured and predictable fixed-income investment may find this NFO an attractive addition to their portfolio. While offering stability, factors such as interest rate fluctuations may impact the returns, making it essential for investors to consider their risk tolerance before investing.

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.