SBI Mutual Fund has introduced two new index funds focused on short-term debt investments in the financial services sector. These funds are designed for investors looking for low-risk and short-duration investment options.
The two schemes are:
SBI CRISIL-IBX Financial Services 3–6 Months Debt Index Fund
SBI CRISIL-IBX Financial Services 9–12 Months Debt Index Fund
Both are open-ended funds that aim to match the performance of their respective CRISIL-IBX debt indices. The New Fund Offer (NFO) opened on April 15 and will close on April 20.
While the goal is to closely track the index, small differences in returns may occur due to tracking errors.
Investment Details and Fund Manager
You can start investing in these funds with a minimum amount of ₹5,000 during the NFO period. After that, additional investments can be made with at least ₹1,000.
Investors also have the option to invest through SIPs, with flexible choices such as daily, weekly, monthly, quarterly, half-yearly, or yearly plans.
Both funds are managed by Rajiv Radhakrishnan, CIO – Fixed Income at SBI Mutual Fund, who has been with the company since 2008.
Why These Funds May Attract Investors
According to SBI Mutual Fund, these schemes are designed to offer a simple, transparent, and low-cost way to invest in short-term debt instruments.
These funds follow an index-based strategy, making them easy to understand and suitable for investors who want predictable and stable returns over a short period.
They mainly focus on financial services sector debt, which adds a targeted investment approach.
Where Will Your Money Be Invested?
Both funds will invest 95% to 100% of their total assets in securities that are part of their respective CRISIL-IBX Financial Services Debt Indices.
The remaining up to 5% can be invested in other low-risk instruments such as:
Commercial papers and bills
Government securities like Treasury Bills, G-Secs, and SDLs
Certificates of deposit
Call or notice money
Additionally, funds may also park money in cash equivalents, liquid mutual funds, or short-term repo instruments as allowed by the RBI.
