ABSL Mutual Fund launches Aditya Birla Sun Life CRISIL IBX SDL Jun 2032 Index Fund

Aditya Birla Sun Life Mutual Fund has launched Aditya Birla Sun Life CRISIL IBX SDL Jun 2032 Index Fund, an open-ended Target Maturity Index Fund with a relatively high-interest rate risk and relatively low credit risk. The New Fund Offer is open for subscription and will close on February 13.

The scheme will be managed by Bhupesh Bameta and Mohit Sharma.

The new fund will be tracking the CRISIL IBX SDL Index – June 2032. The Index will mature on June 30, 2032. It seeks to track the performance of SDL Issuers near to the maturity date of the index.

The minimum investment amount would be Rs 500 and in multiples of Re 1 thereafter. The scheme will have two Plans: Regular and Direct. Each Plan offers growth option and income distribution cum capital withdrawal (IDCW) option.

According to the press release, the investment objective of the scheme is to generate returns corresponding to the total returns of the securities as represented by the CRISIL IBX SDL Index – June 2032 before expenses, subject to tracking errors.

The scheme has a target maturity approach, investing 100% in SDLs. The 10 most liquid issuers, with a minimum outstanding of Rs 14,000 crores are eligible. For each issuer, a security having maturity nearest to the target maturity date is selected. Weights to the issuers will be divided equally as on the base data of the index.