NFO Alert: SBI Mutual Fund Launches Financial Services Debt Index Funds

SBI Mutual Fund has launched 2 new index funds linked to financial services debt benchmarks. The schemes track the CRISIL-IBX Financial Services 3-6 Months Debt Index and the CRISIL-IBX Financial Services 9-12 Months Debt Index.  

Subscriptions for both New Fund Offers (NFOs) opened on 15 April 2026 and will close on 20 April 2026. 

Structure and Key Features 

Both schemes are open-ended and fall under the debt category. The 3-6 months fund is classified as ultra short duration, while the 9-12 months fund is positioned in the low duration segment.  

Investors can enter with a minimum investment of ₹5,000. Growth and IDCW options are available. Neither scheme carries a lock-in period or exit load. 

Investment Strategy 

The funds are to replicate the performance of their respective indices, subject to tracking error. Portfolios will consist of debt instruments issued by financial services entities, aligned with index composition.  

The approach remains passive, with no active security selection beyond what is required to mirror the benchmark. 

Risk Classification 

The riskometer for the 3–6 months index fund is marked as ‘low’, reflecting shorter maturity exposure.  

The 9–12 months fund is categorised as ‘low to moderate’, indicating relatively higher sensitivity to interest rate movements compared to ultra short duration instruments. 

Management and Operations 

Both schemes are managed by Rajeev Radhakrishnan. The asset management company is SBI Funds Management Ltd. Registrar and transfer services are handled by Computer Age Management Services Ltd. 

Read More: Banking Stocks Lead as 9 Companies See Over 600 Mutual Funds Holdings in March! 

Conclusion 

The 2 schemes provide exposure to financial services debt across short maturity buckets. With defined benchmarks, standardised structure, and no exit restrictions, they expand the set of passive debt offerings currently available to investors. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Mutual Funds Investments are subject to market risks, read all the related documents carefully before investing.