Aditya Birla Sun Life Mutual Fund Launches Debt Index Fund: Check Features

The NFO will remain open for seven days between September 15 - September 23. As the fund is an index fund, so its portfolio will seek to replicate the performance of Nifty SDL Plus PSU Bond Sep 2026 60:40 index.

Aditya Birla Sun Life Mutual Fund Launches Debt Index Fund: Check Features

The fund house has launched three new passive funds in the current fiscal year

Aditya Birla Sun Life mutual fund launched its debt index fund - Aditya Birla Sun Life Nifty SDL Plus PSU bond Sep 2026 60:40 index fund. The open ended scheme will track Nifty SDL Plus PSU bond 2026 60:40 index, according to a recent statement shared by the company. The NFO will remain open for seven days between September 15 - September 23. As the fund is an index fund, so its portfolio will seek to replicate the performance of Nifty SDL Plus PSU Bond Sep 2026 60:40 index.

Here's what you need to know about Aditya Birla Sun Life mutual fund's debt index fund:

  • The fund has a defined maturity date with a target maturity of September 30, 2026, along with a diversified portfolio of AAA rated PSU bonds and state development loans (SDLs) maturing on or before the scheme maturity. 
  • The portfolio index will consist of 60 per cent SDLs of the top 10 states and 40 per cent of the top 10 AAA rated PSU bonds curated on the basis of credit quality as well as liquidity scores. It will hold bonds till their maturity to provide predictable and stable returns. 
  • The index fund marks Aditya Birla Sun Life Mutual Fund's entry into passive offerings in the fixed income space. Additionally, the fund house has launched three new passive funds in the current fiscal so far.

The passive debt product combines the simplistic nature of traditional savings instruments with the predictability of returns, the quality portfolio of state government bonds and target maturity period. according to Mr Balasubramanian.

''With yields becoming more attractive and inflation numbers cooling, investors' real returns have gone up. Investors can potentially benefit from the current steepness in rates with the safety and liquidity of debt funds,'' said Mr Mr. A. Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC Limited.

''In a short and medium term investment horizon, the spreads for five years appear attractive, especially for SDLs, compared to G-Secs, mainly driven by higher state borrowings as percentage of overall borrowing. A mix of SDLs and AAA PSU bonds can provide reasonably better returns along with safety and liquidity of an open ended fund,'' added Mr Balasubramanian. 

Aditya Birla Sun Life is a subsidiary firm of financial services company Aditya Birla Capital. On Thursday, September 16, shares of Aditya Birla Capital were last trading 1.05 per cent higher at Rs 115.75 apiece on the BSE. Aditya Birla Capital opened on the BSE at Rs 115.40, touching an intra day high of Rs 117.05 and an intra day low of Rs 115.35 in the trading session so far. 

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