NFO Alert: SBI Mutual Fund has launched two new passive debt index funds. These funds are the SBI CRISIL-IBX Financial Services 3–6 Months Debt Index Fund and the SBI CRISIL-IBX Financial Services 9–12 Months Debt Index Fund. This NFO will remain open until April 20.
Add informalnewz.com as a Preferred Source
SBI Mutual Fund NFO Alert: SBI Mutual Fund has announced the launch of two ‘Constant Maturity Index Funds’ within the financial services sector. These funds are named the SBI CRISIL-IBX Financial Services 3-6 Month Debt Index Fund and the SBI CRISIL-IBX Financial Services 9-12 Month Debt Index Fund. Both are open-ended index funds. They have been designed to track their respective CRISIL-IBX Financial Services Debt Indices.
According to a report published in *The Economic Times*, the New Fund Offer (NFO) for these two schemes opened for subscription on April 15 and will close on April 20. The objective of these schemes is to generate returns that are as close as possible to the returns of their underlying indices. However, minor deviations may occur due to tracking errors.
Investment Avenues Open Up in the Short Term
Nand Kishore, MD and CEO of SBI Funds Management, stated that the launch of these two funds represents an endeavor to offer simple, transparent, and low-cost investment options. Kishore further added that these schemes provide investors with an opportunity to easily invest in short-term financial services debt. These funds operate on a clear and index-based methodology and have been designed to cater to short-term investment requirements.
Start Investing with ₹5,000
During the NFO period, the minimum investment amount is ₹5,000. Subsequently, investments can be made in multiples of ₹1. For additional investments, the minimum amount is ₹1,000, and thereafter, investments can be made in multiples of ₹1. Investments can also be made through daily, weekly, monthly, quarterly, half-yearly, and annual SIPs (Systematic Investment Plans). The Fund Manager for both these debt index funds is Rajiv Radhakrishnan (CFA), CIO – Fixed Income, who has been associated with the fund house since June 2008.
Where will SBI invest?
The SBI CRISIL-IBX Financial Services 3-6 Month Debt Index Fund will invest a minimum of 95% and a maximum of 100% of its total assets in securities included in the CRISIL-IBX Financial Services 3-6 Month Debt Index. Meanwhile, the SBI CRISIL-IBX Financial Services 9-12 Month Debt Index Fund will invest a minimum of 95% and a maximum of 100% of its total assets in securities included in the CRISIL-IBX Financial Services 9-12 Month Debt Index.
The remaining 5% of the assets in both funds may be invested in other secure instruments. These include debt and money market instruments—such as commercial papers, commercial bills, and government securities (G-Secs, SDLs, and Treasury Bills)—with a maturity period of up to one year.
