SBI Mutual Fund has launched two new open-ended constant maturity debt index funds targeting investors seeking relatively stable returns with controlled risk exposure in the debt segment. According to reports from Upstox, both schemes track CRISIL-IBX Financial Services debt indices but differ in their maturity profiles, offering investors index-linked exposure to short-term debt instruments within the financial services space. The funds are positioned as ultra short duration (3-6 months) and low duration (9-12 months) segments, providing defined benchmarks and standardised structure with no exit restrictions. As per SBI Mutual Fund, the offerings are structured to provide index-based exposure to short-tenor financial services debt instruments through a passive investment framework.
The SBI CRISIL-IBX Financial Services 3–6 Months Debt Index Fund tracks the CRISIL-IBX Financial Services 3–6 Months Debt Index and is designed to offer relatively low interest rate risk and relatively low credit risk by investing in short-term debt instruments within the financial services sector. The fund has no entry load or exit load, making it cost-efficient for investors at the time of entry and redemption. The SBI CRISIL-IBX Financial Services 9–12 Months Debt Index Fund tracks the CRISIL-IBX Financial Services 9–12 Months Debt Index, offering relatively higher sensitivity to interest rate movements compared to ultra short duration instruments. Both schemes have a minimum subscription amount of ₹5,000, with additional investments allowed in multiples of ₹1. Growth and IDCW options are available for both schemes, with investors also able to invest through Systematic Investment Plans (SIPs) with daily, weekly, monthly, quarterly, semi-annual, and annual options. According to The Economic Times, the minimum application amount during the NFO is ₹5,000 and in multiples of ₹1 thereafter, with additional purchases of ₹1,000 and in multiples of ₹1 thereafter.
The schemes are structured to invest at least 95% and up to 100% of their assets in securities forming part of the respective indices. The remaining portion, up to 5%, may be allocated to debt and money market instruments, including commercial papers, commercial bills, government securities (including G-Secs, SDLs, and treasury bills) having an unexpired maturity of up to one year, call or notice money, certificates of deposit, usance bills, and any other similar instruments as specified by the Reserve Bank of India from time to time. Investments may also include cash and cash equivalents (treasury bills and government securities with residual maturity of up to one year), Tri-party Repo, and units of liquid mutual funds. The underlying indices comprise Commercial Papers (CPs), Certificates of Deposit (CDs), and corporate bond securities with residual maturities of 3–6 months and 9–12 months at the time of inclusion. As per The Economic Times, such investments may also include cash and cash equivalents (treasury bills and government securities with residual maturity of up to one year), Tri-party Repo, and units of liquid mutual funds.
The riskometer for the 3–6 months index fund is marked as 'low', reflecting shorter maturity exposure and lower sensitivity to interest rate movements compared to ultra short duration instruments. 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. Portfolios consist of debt instruments issued by financial services entities, aligned with index composition, with the approach remaining passive with no active security selection beyond what is required to mirror the benchmark. According to The Economic Times, the investment objective of the schemes is to provide returns that closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error.
The New Fund Offer (NFO) for both schemes opened for subscription on April 15, 2026 and closes on April 20, 2026. Both funds aim to replicate their respective indices' performance while minimising tracking error, with the scheme designed to generate returns that closely match the total returns of its underlying index, subject to tracking error. The funds will be benchmarked against their corresponding CRISIL-IBX indices, with both schemes managed by Rajeev Radhakrishnan, CIO – Fixed Income at SBI Funds Management Limited. He currently oversees multiple debt and hybrid fund strategies across the fund house. Registrar and transfer services are handled by Computer Age Management Services Ltd. According to The Economic Times, DP Singh, Joint CEO of SBI Funds Management, stated that "This launch strengthens our passive debt offerings and provides additional index-based options aligned with short-tenor investment horizons. The clearly defined maturity profile and transparent structure make these funds suitable for investors seeking disciplined exposure to the financial services debt segment." Nand Kishore, MD & CEO of SBI Funds Management, emphasized that the launch reflects the company's continued focus on offering simple, transparent, and low-cost passive investment solutions, providing investors with access to short-tenor financial services debt through a clearly defined index-based approach aligned with their short-term investment needs.
