Publish Date:
Aditya Birla Sun Life Mutual Fund has launched an open-ended target maturity Index Fund - Aditya Birla Sun Life Nifty SDL Plus PSU Bond SEP 2026 60:40 Index Fund.
The scheme will be predominantly investing in the constituents of Nifty SDL Plus PSU Bond Sep 2026 60:40 Index.
The investment objective of the scheme is to track the Nifty SDL Plus PSU Bond Sep 2026 60:40 Index by investing in PSU Bonds and SDLs, maturing on or before September 2026, subject to tracking errors.
The Scheme does not guarantee/indicate any returns. There can be no assurance that the schemes’ objectives will be achieved.
Aditya Birla Sun Life Nifty SDL Plus PSU Bond SEP 2026 60:40 Index Fund is mandated to invest 95% to 100% of its net assets in Bonds issued by PSUs forming part of the bonds portion of the Nifty SDL Plus PSU Bond Sep 2026 60:40 Index, and State Development Loans (SDLs) forming part of the SDL portion of the Nifty SDL Plus PSU Bond Sep 2026 60:40 Index.
It can invest 0% to 5% of the net assets in Cash and Money Market Instruments.
Aditya Birla Sun Life Nifty SDL Plus PSU Bond SEP 2026 60:40 Index Fund is a passively managed debt Index Fund which will invest the money in PSU Bonds and State Development Loans (SDLs) maturing on or before the maturity of the scheme, money market instruments (commercial papers, commercial bills, treasury bills, Government securities having an unexpired maturity upto one year, call or notice money, certificate of deposits, commercial papers, usance bills, Tri-party Repo on Government securities or treasury bills and any other like instruments as specified by the Reserve Bank of India from time to time). Non-convertible part of convertible securities, Pass through, Pay through or other Participation Certificates, representing interest in a pool assets including receivables.
As per the Scheme Information Document, Aditya Birla Sun Life Nifty SDL Plus PSU Bond SEP 2026 60:40 Index Fund seeks to track the Nifty SDL Plus PSU Bond Sep 2026 60:40 Index subject to tracking errors.
Accordingly, the Scheme will invest in AAA rated PSU bonds and SDLs maturing within the maturity date of the Scheme. The Scheme is a Target Maturity Date Index Fund. It will mature on September 30, 2026 and will distribute all of its maturity proceeds (Net Assets) to the Unitholders within 10 (Ten) Business days from the date of maturity of the Scheme, in line with current regulatory timelines.
The Scheme will follow Buy & Hold investment strategy in which existing bonds will be held till maturity unless sold for meeting redemptions, payment of IDCW, rebalancing requirement or optimizing portfolio construction process.
The portfolio of eligible securities invested by the Scheme is expected to have, in aggregate, fundamental characteristics such as modified duration, weighted average maturity, aggregate credit ratings, aggregate Yield To Maturity (YTM) etc. along with other liquidity parameters predominantly in line with Nifty SDL Plus PSU Bond Sep 2026 60:40 Index. The Scheme may or may not hold all of the eligible securities which are part of Nifty SDL Plus PSU Bond Sep 2026 60:40 Index. The Issuer weight of the Scheme will be in line with the Issuer weights in the Index subject to suitability and availability of the eligible PSU bonds and SDLs from time to time.
The Scheme may also participate in new issuances / private placement by the eligible issuers which are currently not part of the index but will eventually get included in the index during the next rebalancing period. The Scheme may participate in such issuances only if they meet all eligibility criteria as defined by the index and suitable from asset allocation perspective and other parameters of the Scheme.
Further, following norms shall be adopted - (a) The constituents of the index shall be aggregated at issuer level. (b) The index shall have a minimum of 8 issuers. (c) No single issuer shall have more than 15% weight in the index. (d) The rating of the constituents of the index shall be investment grade. (e) The constituents of the index shall have a defined credit rating and defined maturity as specified in the index methodology.
Aditya Birla Sun Life Nifty SDL Plus PSU Bond SEP 2026 60:40 Index Fund’s performance will be benchmarked against Nifty SDL Plus PSU Bond Sep 2026 60:40 Index.
The fund will be managed by Mr Mohit Sharma.
The NFO opens for subscription on September 15, 2021, and closes on September 23, 2021. The scheme will reopen within 5 business days from date of allotment.
The minimum subscription amount is Rs 500 and in multiples of Re 1 thereafter.
The fund offers Regular Plan and Direct Plan having Growth Option and Income Distribution cum Capital Withdrawal Option (“IDCW”) (Pay-out o IDCW).