Aditya Birla Sun Life Mutual Fund has launched Aditya Birla Sun Life CRISIL-IBX AAA NBFC-HFC Index-Sep 2026 Fund, an open-ended fund with moderate interest rate risk and relatively low credit risk. It is a Target Maturity Fund investing in India’s top NBFCs & HFCs.
The new fund offer or NFO of the scheme is open for subscription and will close on October 7.
The investment objective 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.
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The scheme will be benchmarked against CRISIL-IBX AAA NBFC-HFC Index – Sep 2026. It will be managed by Harshil Suvarnkar and Vighnesh Gupta.
It will allocate 95-100% in instruments forming part of the CRISIL-IBX AAA NBFC-HFC Index – Sep 2026 and 0-5% in debt and money market instruments (including cash and cash equivalent).
“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. If yields decline going forward, investors could benefit from potential price appreciation, particularly in high-quality papers. With attractive yields and a favorable risk-reward profile, a roll-down strategy is particularly well-suited to the current interest rate environment,” said A. Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life AMC.
The fund’s investment approach will appeal to investors seeking a passive debt strategy with an investment horizon ranging from 3 to 24 months with yields in India expected to remain attractive along with a relatively stable credit risk profile.
The fund will focus on a buy & hold strategy and the portfolio will comprise 100% AAA-rated corporate bonds in the NBFC and HFC space, offering investors high-quality debt exposure. Rebalancing will take place semi-annually in April and October until the index maturity on 30th September, 2026, unless bonds become ineligible. This strategy offers a structured approach to long-term investment in the robust NBFC and HFC sectors.
