SBI Mutual Fund has launched the SBI CRISIL-IBX SDL Index – June 2034 Index Fund, a target maturity passive debt scheme. The new fund offer (NFO) opened on July 7, 2026, and will close on July 14, 2026.
The scheme seeks to track the CRISIL-IBX SDL Index – June 2034 and generate returns that closely correspond to the performance of the underlying index, subject to tracking error. The fund does not guarantee any returns and will follow a passive investment approach.
The SBI CRISIL-IBX SDL Index – June 2034 Index Fund has been introduced as an open-ended passive debt mutual fund. The NFO period runs from July 7, 2026, to July 14, 2026, allowing investors to subscribe during this window.
The scheme is designed to replicate the performance of the CRISIL-IBX SDL Index – June 2034 as closely as possible. As with other index-based funds, returns may differ slightly from the benchmark because of tracking error and portfolio management requirements.
Target maturity funds are passive debt mutual funds that track a predefined bond index and hold securities until a specified maturity period. These schemes are structured to align investments with a particular investment horizon, making them different from actively managed debt funds.
The SBI scheme is linked to securities maturing around June 2034, matching the maturity profile of its benchmark index. Such funds primarily focus on maintaining the composition of the underlying index rather than making active investment calls.
According to the scheme information document, between 95% and 100% of the corpus will be invested in securities that form part of the underlying CRISIL-IBX SDL Index – June 2034. The remaining allocation of up to 5% may be invested in debt and money market instruments for liquidity and portfolio management purposes.
These instruments may include treasury bills, commercial paper, certificates of deposit, and cash equivalents. The allocation framework aims to ensure that the scheme remains closely aligned with its benchmark while meeting operational requirements.
The fund will predominantly invest in state development loans (SDLs) that mature around June 2034. SDLs are debt securities issued by state governments and are generally considered government-backed instruments within the domestic fixed-income market.
The scheme has been classified as carrying relatively high interest rate risk and relatively low credit risk. This classification reflects the sensitivity of long-duration debt instruments to changes in interest rates while maintaining exposure to securities that have comparatively lower credit risk characteristics.
Read More: SBI Mutual Fund Portfolio Update.
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The SBI CRISIL-IBX SDL Index – June 2034 Index Fund adds another target maturity option to the passive debt fund segment. The scheme seeks to mirror the performance of the CRISIL-IBX SDL Index – June 2034 through investments primarily in SDLs.
Its asset allocation strategy focuses largely on index constituents, with a small portion reserved for liquidity management instruments. The NFO remains open from July 7, 2026, to July 14, 2026, providing investors access to a passive debt fund linked to securities maturing around June 2034.
Investors looking to explore investment opportunities can open a demat account to invest and trade in the equity market seamlessly.
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.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jul 7, 2026, 12:40 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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