NFO Alert: SBI Mutual Fund launches two constant maturity index funds in financial services

SBI Mutual Fund announced the launch of two Constant Maturity Index Funds in the financial services segment – SBI CRISIL‑IBX Financial Services 3–6 Months Debt Index Fund and SBI CRISIL‑IBX Financial Services 9–12 Months Debt Index Fund

The new fund offer or NFO of these two passive funds is open for subscription and will close on April 20.

The investment objective of the schemes is to provide returns that closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error.

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“The launch of 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 reflects our continued focus on offering simple, transparent, and low‑cost passive investment solutions. These schemes provide investors with access to short‑tenor financial services debt through a clearly defined index‑based approach, aligned with their short‑term investment needs,” said Nand Kishore, MD & CEO, SBI Funds Management.

The SBI CRISIL‑IBX Financial Services 3–6 Months Debt Index Fund would primarily invest a minimum of 95% and up to 100% of its assets in securities forming part of the CRISIL‑IBX Financial Services 3–6 Months Debt Index.
The SBI CRISIL‑IBX Financial Services 9–12 Months Debt Index Fund would primarily invest a minimum of 95% and up to 100% of its assets in securities forming part of the CRISIL‑IBX Financial Services 9–12 Months Debt Index.
The balance up to 5% of the assets in both funds may be invested in debt and money market instruments, including commercial papers, commercial bills, government securities (including G‑Secs, SDLs, and treasury bills) having an unexpired maturity of up to one year, call or notice money, certificates of deposit, usance bills, and any other similar instruments as specified by the Reserve Bank of India from time to time.
Such investments may also include cash and cash equivalents (treasury bills and government securities with residual maturity of up to one year), Tri‑party Repo, and units of liquid mutual funds.

“This launch strengthens our passive debt offerings and provides additional index‑based options aligned with short‑tenor investment horizons. The clearly defined maturity profile and transparent structure make these funds suitable for investors seeking disciplined exposure to the financial services debt segment,” said DP Singh, Joint CEO, SBI Funds Management.

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The minimum application amount during the NFO is Rs 5,000 and in multiples of Re 1 thereafter with additional purchases of Rs 1,000 and in multiples of Re 1 thereafter. Investments can also be done through daily, weekly, monthly, quarterly, semi-annual, and annual SIPs (Systematic Investment Plans).

The fund manager for the SBI CRISIL‑IBX Financial Services 3–6 Months Debt Index Fund and SBI CRISIL‑IBX Financial Services 9–12 Months Debt Index Fund is Rajeev Radhakrishnan.

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