Aditya Birla Sun Life Crisil-IBX AAA NBFC-HFC INDEX-Sep 2026 Fund

Aditya Birla Sun Life Crisil-IBX AAA NBFC-HFC INDEX-Sep 2026 Fund: Complete Overview

Aditya Birla Sun Life Mutual Fund launches India's new target maturity fund i.e. Aditya Birla Sun Life Crisil-IBX AAA NBFC-HFC INDEX-Sep 2026 Fund under Aditya Birla Sun Life AMC Limited.

This new fund offer will concentrate on India’s leading NBFCs (Non-Banking Financial Companies) and HFCs (Housing Finance Companies). This is an open-ended Target Maturity Index Fund that will track the CRISIL-IBX AAA NBFC-HFC Index-Sep 2026. The Scheme carries a moderate interest rate risk and relatively low credit risk.

Aditya Birla NFO opens on September 30, 2024, and closes on October 07, 2024. This mutual fund scheme will be open for ongoing sale and repurchase within 5 business days from the date of allotment. The Aditya Birla Sun Life Crisil-IBX AAA NBFC-HFC INDEX-Sep 2026 Fund NFO has a subscription amount of Rs.1000 and in multiples of Rs.1. The plan has a moderate level of risk. It is not assured that the investing objective of the program will be achieved.

"Investors can benefit from this yield, with the added possibility of price appreciation if rates decline.”-M.D & CEO of Aditya Birla Sun Life AMC.

The Scheme will invest 95-100% of assets in instruments included in the CRISIL-IBX AAA NBFC-HFC-Sep 2026 Index and 0-5% in Debt and money market Instruments (including cash and cash equivalents)

Let’s see this new NFO or new fund offer offerings below:

Fund’s Strategy

The fund will adopt a “Buy and Hold” strategy with April and October semi-annual rebalancing until the index matures on September 30, 2026.

What is CRISIL-IBX AAA NBFC-HFC Index-Sep 2026?

• Weight allocation-

         Group Capping- 25%

         Each Issuer- 15%

• 100% AAA Corporate Bonds in the HFC Sector of NBFC.

• Uses a “buy and hold” strategy to retain your AAA issuer portfolio till maturity, unless they lose eligibility.

• Index Maturity- September 30, 2026.

• Securities in the HFC and NBFC sectors with a minimum total outstanding amount of Rs.500 crores at the issuer level.

• A minimum outstanding sum of Rs.100 crores for security purposes.

What are Sectorial Target Maturity Funds?

• Sector-focused. The index provider's methodology applies limitations.

• Available via Fund House; exit loads apply.

• Concentrate risk exposure within a certain industry for a specified return profile and increased risk visibility.

Why invest in Sectorial Target Maturity Funds?

• For two and three-year points, corporate bond yields and liquidity are comparatively balanced.

• Relatively better risk-reward ratio with higher yields.

• Rolling down a plan is appropriate given the state of interest rates right now.

• Available liquidity during the duration of the fund.

  Who should invest in this fund?

   

The product is suitable for investors wishing to invest in steady, superior debt for the next 3 to 24 months and want income over the target maturity period.

Scheme Plan: This new mutual fund scheme is available in two options:

Direct Plan and Regular Plan

Each Plan offers-

a) Growth Option

b) Income Distribution cum Capital Withdrawal (IDCW).

Aditya Birla Sun Life Mutual Fund Details

• At about $41 billion in gross revenue, the Aditya Birla Group is the third-largest corporate group in India.

• It is one of the biggest life insurance companies in the world. Their other speciality is investment management. According to the Fortune 500, it is ranked 236th.

• AUM of 3.31 lac crores as of March 31, 2024.

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Fund Overview

How To Invest In The Scheme After The Closure of The NFO?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then within 5 business days after the closure of the NFO, when the Scheme will reopen; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based price by logging on to your Demat account and search for “Aditya Birla Sun Life Crisil-IBX AAA NBFC-HFC INDEX-Sep 2026 Fund” or directly with the AMC or simply click the ‘Banner’ below.

The Objective of The Fund

To produce returns that, subject to tracking errors, equate to the total returns of the securities as represented by the CRISIL-IBX AAA NBFC-HFC Index-Sep 2026 before expenditures.

Asset Allocation (% of Total Assets) of the Scheme's portfolio will be as follows:

Peers of Aditya Birla Sun Life Crisil-IBX AAA NBFC-HFC INDEX-Sep 2026 Fund

Since this scheme is a new scheme, hence no comparable data on its past performance against its peers is available.

Risk Factors In Such Funds

• The Scheme will be exposed to the risks connected with such concentration if it chooses to focus its investments on the securities of certain NBFC-HFC issuers.

• The Scheme might be more volatile and risky than it would typically be in a fund portfolio of more varied debt assets.

• The Scheme will not be actively managed because it plans to invest at least 95% of net assets in the Underlying Index's securities in the same ratio. The Scheme's success will be directly impacted by the Underlying Index's performance.

• Although closely tracking the index is the scheme's goal, performance may not always match the underlying Index's performance on a given day or over a particular length of time.

Past Performance of Target Maturity Index Funds

 Aditya Birla Sun Life Crisil-IBX AAA NBFC-HFC INDEX-Sep 2026 Fund-Growth Fund Managers:

• Mr. Harshil Suvarnkar.

Conclusion

This Fund is a moderate-risk fund investing primarily in high-rated NBFCs and HFCs in India. It adopts a "buy and hold" investment strategy until the year 2026, making it appealing to any investor looking for steady returns over the medium term. There is potential to grow but the performance is closely related to the performance of the CRISIL index and hence sectorial concentration may bring about some risks. All of the above indicates the need for investors to check their risk levels and financial objectives before making an investment decision.