Aditya Birla Sun Life MF Launches New Index Fund Focused on Financial Services
Aditya Birla Sun Life Mutual Fund is introducing a new investment option called the Aditya Birla Sun Life Crisil-IBX AAA Financial Services Index – SEP 2027 Fund. This fund is a type of target maturity index fund, meaning it follows a specific financial index until a set date – September 2027. The fund is focused on high-quality, AAA-rated financial services companies, giving it a relatively low level of credit risk and moderate interest rate risk.
The fund’s New Fund Offer (NFO) opens for investment on November 4 and will close on November 12. After the initial period, investors can buy or sell units within five business days after the units are allotted.
This fund’s goal is to match the returns of the CRISIL-IBX AAA Financial Services Index – Sep 2027 as closely as possible, minus costs and potential small differences in performance, known as tracking errors. It will follow the index closely, with fund managers Harshil Survankar and Vighnesh Gupta overseeing the investment.
The fund offers two plans: a regular one and a direct one, with growth and IDCW (Income Distribution cum Capital Withdrawal) options in both. Investors can make a one-time investment starting at Rs.1,000, with additional contributions allowed in multiples of Rs.100. Those who prefer to invest gradually can set up a Systematic Investment Plan (SIP), with monthly or weekly SIPs starting at Rs.1,000 and further contributions allowed in Re 1 increments.
Most of the fund (95-100%) will be invested in securities included in the CRISIL-IBX AAA Financial Services Index – Sep 2027, with a small amount (0-5%) allocated to other debt and money market instruments, including cash. This is a passively managed fund, meaning it simply follows the index, aiming to replicate its returns by the target date of September 2027, while keeping tracking errors to a minimum.
This fund could be a good fit for investors looking to earn steady income over a specific timeframe, particularly those interested in a stable, open-ended fund that closely follows a financial services index and aims for reliable returns by 2027.
