Aditya Birla's 2-Year AAA NBFC-HFC Index Fund: Target Maturity NFO Opens

The fund's strategy is to follow a 'Buy & Hold' approach, with semi-annual rebalancing in April and October until the index matures on September 30, 2026

Aditya Birla Sun Life AMC Limited (ABSLAMC) has launched a new Target Maturity Fund aimed at investing in India’s leading Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs). The fund, named ‘Aditya Birla Sun Life CRISIL-IBX AAA NBFC-HFC Index-Sep 2026 Fund,’ is set to open for subscription from September 30, 2024, to October 7, 2024.

 

The fund will employ a ‘buy and hold’ strategy, with semi-annual rebalancing in April and October until maturity on September 30, 2026, unless bonds become ineligible.

 

This approach offers investors a structured method for long-term investment in the robust NBFC and HFC sectors.

 

“Securities with this rating (AAA rating) are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such securities carry the lowest credit risk,” says CRISIL ratings.

 

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

 

Objective of scheme: The investment objective of the scheme is to generate returns corresponding to the total returns of the securities as represented by the CRISIL-IBX AAA NBFC-HFC Index – Sep 2026 before expenses, subject to tracking errors.

 

Fund allocation: It will allocate 95-100 per cent in instruments forming part of the CRISIL-IBX AAA NBFC-HFC Index – Sep 2026 and 0-5 per cent in debt and money market instruments (including cash and cash equivalent). 

 

Scheme type: Open Ended

 

Scheme category: Other Scheme - Index Funds

 

New fund launch date: 30-Sep-2024

 

New fund offer closure date: 07-Oct-2024

 

Fund manager: It will be managed by Harshil Suvarnkar and Vighnesh Gupta. 

 

“In an environment where stability and quality are paramount, the target maturity fund investing in India’s top NBFCs & HFCs offers a robust investment opportunity. Corporate bond yields and liquidity are notably well-balanced at the 2 and 3-year maturities, offering a timely investment opportunity,” said A Balasubramanian, Managing Director & CEO of Aditya Birla Sun Life AMC Ltd.

According to the fund house, this fund has moderate interest rate risk and relatively low credit risk. Investors looking for a passive debt option with an investment horizon ranging from 3 to 24 months can consider this fund.