Aditya Birla Sun Life Launches Mutual Fund

Hyderabad: Aditya Birla Sun Life AMC Limited has announced the launch of a Target Maturity Fund Investing in India’s top NBFCs & HFCs. The Aditya Birla Sun Life CRISIL-IBX AAA NBFC-HFC Index-Sep 2026 Fund, is an open-ended fund, with moderate interest rate risk and relatively low credit risk. The New Fund Offer (NFO) will remain open from 30th September, to 7th October, 2024.

The fund will focus on a Buy & Hold Strategy and the portfolio will comprise of 100 per cent AAA-rated corporate bonds in the NBFC and HFC space, offering investors high-quality debt exposure. Rebalance 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.

Commenting on the new fund launch, A Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life AMC Ltd, said, “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.”

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.