Aditya Birla Sun Life Mutual Fund announced the launch of the Aditya Birla Sun Life Crisil IBX Gilt Apr 2028 Index Fund, an open-ended index fund scheme tracking the CRISIL IBX Gilt Apr 2028 Index constituents. The scheme opened for public subscription on March 08, 2023, and will close on March 14, 2023.
Q. What kind of mutual fund scheme is this?
This kind of open-ended index fund scheme aims to generate returns commensurate with the performance of the CRISIL IBX Gilt Apr 2028 Index. This is a relatively high interest rate risk and relatively low credit risk scheme and is best suited for investors seeking income over the target maturity period. However, there is no assurance that the scheme’s investment objective will be realized.
Q. What is the main objective of investing in this fund?
The investment objective of the scheme is to generate returns corresponding to the total returns of the securities as represented by the CRISIL IBX Gilt Apr 2028 Index before expenses, subject to tracking errors. The scheme does not guarantee/indicate any returns. There can be no assurance or guarantee that the investment objective of the scheme will be achieved.
Q. How may one invest in this fund?
Investors can invest under the scheme with a minimum investment of ₹500 and in multiples of Re 1 thereafter during the New Fund Offer (NFO) period. The scheme will have regular and direct plans under the scheme with the following options:
- Income Distribution cum Capital Withdrawal Option (“IDCW”) (Payout of IDCW)
- Growth Option
Under normal circumstances, the asset allocation of the scheme will be as follows:
| Instruments | Risk Profile | Allocation (% of total assets) | |
| Minimum | Maximum | ||
| Instruments forming part of the CRISIL IBX Gilt Apr 2028 Index | Moderate | 95% | 100% |
| Cash and Debt/Money Market Instruments | Low | 0% | 5% |
Q. Are there similar mutual funds in the market?
To date, many asset management companies have launched index funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in a particular index. These include:
| Name of the fund | Three-year returns (in %) | Five-year returns (in %) |
| Nippon India Index Fund - Sensex Plan | 17.60 | 13.00 |
| LIC MF Index Fund Sensex | 17.10 | 12.70 |
| ICICI Prudential Nifty Index Fund | 17.90 | 12.20 |
| UTI Nifty Index Fund | 18.10 | 12.50 |
| Source: MoneyControl | ||
Q. How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked to the performance of the CRISIL IBX Gilt Apr 2028 Index. The scheme seeks to invest in the constituents of the CRISIL IBX Gilt Apr 2028 Index and similar securities in line with the SEBI circular dated May 23, 2022. Therefore, the composition of the CRISIL IBX Gilt Apr 2028 Index makes it most suited to compare the performance of the scheme.
The CRISIL IBX Gilt Apr 2028 Index seeks to measure the performance of a portfolio predominantly invested in G-Sec maturing between 06 September, 2027 and 05 April, 2028. The index shall mature on April 05, 2028.
Q. Are there any entry or exit loads to this scheme?
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” is also “Zero”.
Q. Who will manage this scheme?
Bhupesh Bameta and Sanjay Godambe would be the designated fund managers of the scheme.
Q. Does the fund contain any inherent risk?
The scheme involves “Moderate Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to moderate risk. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.
