Aditya Birla Sun Life Mutual Fund launches Debt Index Fund

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Aditya Birla Sun Life AMC Limited, a subsidiary of Aditya Birla Capital Limited and investment manager to Aditya Birla Sun Life Mutual Fund announced the launch of Aditya Birla Sun Life Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund. It is an open-ended scheme tracking the Nifty SDL Plus PSU Bond Sep 2026 60:40 Index.

The NFO opens on September 15, 2021 and closes on September 23, 2021.

The fund has a defined maturity date with a target maturity of September 30, 2026, with a diversified portfolio of AAA rated PSU Bonds and SDLs maturing on or before scheme maturity. Since it is an index fund its portfolio will seek to replicate the performance of Nifty SDL Plus PSU Bond Sep 2026 60:40 Index.

A. Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC Limited said, “ A mix of SDLs and AAA PSU Bonds can provide reasonably better returns along with safety and liquidity of an open ended fund. A roll down strategy is being employed to take benefits of reasonable yields”.

This index fund marks Aditya Birla Sun Life Mutual Fund’s foray into passive offerings in the fixed income space. In addition to this, the fund house has launched 3 new passive funds in the current financial year so far.

“As a fund house, we are looking at expanding our offerings in this segment that complements our existing strong presence through our active funds. Our goal is to develop a diverse product bouquet to implement differentiated and thematic investment strategies that consider long-term trends and values. In addition to our existing comprehensive product development strategy, we are also focusing on developing specific product categories such as our passive products in both equity and debt”, added Balasubramanian.

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Published on: Wednesday, September 15, 2021, 05:38 PM IST

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