The Aditya Birla Sun Life Crisil-IBX Financial Services 9-12 Months Debt Index Fund – Direct (G) is an open-ended index fund aiming to generate returns in line with the total returns of the CRISIL-IBX Financial Services 9-12 Months Debt Index. The fund seeks to replicate the performance of the index, before expenses, subject to tracking errors. The NFO is open from 18th March 2025 to 20th March 2025, with a minimum subscription amount of Rs. 1,000. This fund provides exposure to debt securities within the financial services sector with a focus on a 9-12 months maturity range.

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Investment Objective and Strategy

Objective:

The investment objective of the Aditya Birla Sun Life Crisil-IBX Financial Services 9-12 Months Debt Index Fund – Direct (G) is to generate returns corresponding to the total returns of the securities as represented by the CRISIL-IBX Financial Services 9-12 Months Debt Index before expenses, subject to tracking errors.

Strategy:

The Aditya Birla Sun Life Crisil-IBX Financial Services 9-12 Months Debt Index Fund – Direct (G) follows a passive investment strategy. The Scheme will replicate income over the constant maturity period of its underlying index i.e. CRISIL-IBX Financial Services 9-12 Months Debt Index, subject to tracking errors.

Accordingly, the Scheme will invest in securities in line with the benchmark index of the Scheme. In line with constant maturity profile of the underlying Index, the scheme follows perpetual structure, wherein the scheme would be rebalanced as per set frequency and remain in line with maturity profile. The Scheme shall endeavour to replicate the index in line with para 3.5.3 of SEBI Master Circular on Mutual Funds dated June 27, 2024. In case the Scheme is not able to replicate the index the Fund Manager may invest subject to deviations as permitted by SEBI Master Circular on Mutual Funds dated June 27, 2024, as amended from time to time. The Scheme will also invest in money market instruments in line with the asset allocation defined.

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Risk Associated with Aditya Birla Sun Life Crisil-IBX Financial Services 9-12 Months Debt Index Fund – Direct (G)

As the Aditya Birla Sun Life Crisil-IBX Financial Services 9-12 Months Debt Index Fund – Direct (G) proposes to invest not less than 95% of the net assets in the securities of the Underlying Index in the same proportion, the Scheme will not be actively managed. The performance of the Underlying Index will have a direct bearing on the performance of the Scheme. The Scheme may be affected by a general decline in the Indian markets relating to its Underlying Index. The Scheme invests in the securities included in its Underlying Index regardless of their investment merit. The AMC does not attempt to individually select stocks or to take defensive positions in declining markets.

Further, it is pertinent to note that there is no element of research recommendations involved before the execution of trades in the Scheme. The decision of the Fund Manager to execute trades including rebalancing required will be purely driven by the inflows and outflows in the Scheme and composition of the Underlying Index.