The fund will track the CRISIL-IBX Financial services 9-12 Months Debt Index The NFO will be open for subscription from 18th March 2025 to 20th March 2025
Bengaluru, March 18, 2025: Aditya Birla Sun Life AMC Limited (ABSLAMC) was incorporated in the year 1994. Aditya Birla Capital Limited and Sun Life (India) AMC Investments Inc. are the promoters and major shareholders of the Company. ABSLAMC is primarily the investment manager of Aditya Birla Sun Life Mutual Fund, a registered trust under the Indian Trusts Act, 1882. The asset manager has announced the launch of the Aditya Birla Sun Life CRISIL-IBX Financial Services 9 to 12 Months Debt Index Fund, an open-ended constant maturity index fund tracking the CRISIL-IBX Financial Services 9 to 12 Months Debt Index. The New Fund Offer (NFO) will remain open from 18th March 2025 to 20th March 2025.
The fund offers a distinctive opportunity for investors looking to optimize yields while maintaining a low-risk profile. With a constant maturity structure and a roll-down strategy from 9 to 12 months, the fund focuses on low-duration securities, primarily Commercial Papers, Certificates of Deposit and bonds, ensuring minimal exposure to interest rate fluctuations. It is strategically diversified, investing in a wide range of high-quality, AAA-rated issuers within the financial services sector, providing robust security and stability. The roll-down approach adds further value by holding securities for a 6-month period, potentially enhancing returns when term premiums are favourable. Additionally, being open-ended, the fund offers liquidity with flexibility for investors to enter or exit without any load, making it an attractive option for those seeking a combination of safety, flexibility, and potential return in a dynamic market.
Commenting on the new fund launch, A. Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life AMC Ltd, said, “Our debt passive fund offerings continue to gain strong investor traction with the 3 to 6 months debt index fund assets reaching almost Rs 3700 crore as of 15th March 2025. This reflects strong investor confidence in high-quality, short-duration fixed-income solutions. With interest rates and yields currently elevated, expectations of upcoming rate cuts could lead to lower yields, enhancing the potential for attractive returns. The financial sector’s strong fundamentals, coupled with expectations of favourable interest rate movements, make the 9 to 12 months debt index fund an opportune time for investors to participate in this space.”
