Home >Mutual Funds >News >Aditya Birla Sun Life to launch debt index fund: 5 things to know
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Aditya Birla Sun Life Mutual Funds on Wednesday announced the launch of its Debt Index fund- Aditya Birla Sun Life Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund. The opened-ended scheme would be tracking Nifty SDL Plus PSU Bond Sep 2026 60:40 Index. Its NFO would be open for 7 days between 15 September to 23 September. 

Here are the 5 thing that you need to know about the fund: 

  • The fund has a defined maturity date with a target maturity of September 30, 2026, with a diversified portfolio of AAA rated PSU Bonds and SDLs maturing on or before scheme maturity. 
  • Since it is an index fund its portfolio will seek to replicate the performance of Nifty SDL Plus PSU Bond Sep 2026 60:40 Index. 
  • The portfolio index will comprise of 60% SDLs of top 10 states/Union Territories and 40% of top 10 AAA rated PSU bonds curated on the basis of credit quality and liquidity scores. 
  • It will endeavor to hold bonds till their maturity with an aim to provide stable and predictable returns. Subsequently, there will be a quarterly rebalancing and review of the index constituents.
  • This index fund marks Aditya Birla Sun Life Mutual Fund’s foray into passive offerings in the fixed income space. In addition to this, the fund house has launched 3 new passive funds in the current financial year so far.

A. Balasubramanian, MD and CEO, Aditya Birla Sun Life AMC Limited said, “The passive debt product combines the simplicity of traditional savings instruments with the predictability of returns, quality portfolio of State Government bonds and AAA rated PSU bonds, target maturity period and the flexibility of an open ended scheme, better liquidity and tax benefits."  

“With yields becoming more attractive and inflation numbers cooling, investors’ real returns have gone up. Investors can potentially benefit from the current steepness in rates with the safety and liquidity of debt funds. In a short and medium term investment horizon, the spreads for 5 years appear attractive, especially for SDLs, compared to G-Secs, mainly driven by higher state borrowings as percentage of overall borrowing."

“A mix of SDLs and AAA PSU Bonds can provide reasonably better returns along with safety and liquidity of an open ended fund. A roll down strategy is being employed to take benefits of reasonable yields," he also said. 



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