SBI Mutual Fund Launches SBI CRISIL IBX SDL Index - September 2027 Fund

Sep 28, 2022

SBI Mutual Fund has Introduced a new scheme – SBI CRISIL IBX SDL Index – September 2027 Fund

It is an open-ended Target Maturity Index Fund investing in constituents of CRISIL IBX SDL Index – September 2027 Index. A relatively high interest rate risk and relatively low credit risk.

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

However, there is no guarantee or assurance that the investment objective of the scheme will be achieved.

Under normal circumstances, SBI CRISIL IBX Gilt Index – September 2027 Fund will hold an allocation of 95% to 100% of its assets in securities covered by CRISIL IBX SDL Index – September 2027 and 0% to 5% in Government Securities maturing on or before maturity date of the scheme, Money Market instruments including Triparty Repo and units of liquid mutual fund.

As per the Scheme Information Document, SBI CRISIL IBX Gilt Index – September 2027 Fund will track CRISIL IBX SDL Index – September 2027 and will use a “passive” or indexing approach to endeavour to achieve scheme’s investment objective. Unlike other funds, the scheme will not try to “beat” the market it tracks and do not seek temporary defensive positions when market decline or appear overvalued. The AMC does not make any judgments about the investment merit of a particular security nor will it attempt to apply any economic, financial or market analysis. Indexing eliminates active management risks with regard to over/ underperformance vis-à-vis a benchmark. Since the scheme is an index fund, the scheme will only invest in the securities constituting the underlying index.

The Scheme may also invest a portion of its portfolio in government securities maturing on or before the maturity date of the Scheme, money market instruments including triparty repo and units of liquid mutual fund to manage the liquidity requirement.

SBI CRISIL IBX Gilt Index – September 2027 Fund’s performance will be benchmarked against CRISIL IBX SDL Index – September 2027

The scheme will be managed by Mr Dinesh Ahuja

The NFO opens for subscription on September 26, 2022 and closes on October 03, 2022. The scheme will reopen for continuous sale and repurchase within 5 Business Days from the date of allotment.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000/- and in multiples of any amount thereafter. 

The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.