If you are looking for a safe and short-term investment option, this new offer from SBI Mutual Fund could be worth your attention.
The fund house has launched two new constant maturity index funds focused on short-term debt in the financial services sector. These are:
SBI CRISIL-IBX Financial Services 3–6 Months Debt Index Fund
SBI CRISIL-IBX Financial Services 9–12 Months Debt Index Fund
Both funds are open for investment under a New Fund Offer (NFO) from April 15 to April 20.
These funds aim to give returns similar to their respective CRISIL-IBX Financial Services Debt Index, though slight differences may occur due to tracking error.
Easy Entry with Low Investment
You can start investing in these funds with just ₹5,000 during the NFO period. After that, additional investments can be made starting from ₹1,000.
For those who prefer disciplined investing, SIP options are also available. You can choose from daily, weekly, monthly, quarterly, half-yearly, or yearly plans.
The funds will be managed by Rajiv Radhakrishnan, an experienced fixed income expert associated with SBI Mutual Fund since 2008.
Designed for Short-Term Investors
According to SBI Mutual Fund’s CEO Nand Kishore, these funds are built to offer simple, transparent, and low-cost investment options.
They follow an index-based strategy, which means the investment is aligned with a specific market index instead of active stock picking.
This makes them easier to understand and suitable for investors looking for short-term opportunities in debt markets.
Where Will Your Money Be Invested?
Both funds will invest 95% to 100% of their total assets in securities that are part of their respective indices.
The 3–6 months fund will invest in short-duration debt instruments
The 9–12 months fund will focus on slightly longer short-term securities
The remaining up to 5% can be invested in safe and liquid options such as:
Government securities (G-Secs, Treasury Bills, SDLs)
Commercial papers and bills
Certificates of deposit
Call/notice money and other RBI-approved instruments
They may also hold cash, liquid mutual fund units, and tri-party repos to maintain liquidity.