The fund house announced the change on September 24. The scheme is reopening today, while all other terms and conditions remain unchanged.
The open-ended debt index fund tracks the CRISIL-IBX Financial Services 3-6 Months Debt Index (TRI). Its new fund offer (NFO) was open for subscription from September 15 to September 22.
The scheme will invest in securities issued by financial services companies, including banks, non-banking financial companies (NBFCs), housing finance companies and financial institutions. Under normal circumstances, 95-100% of its net assets will be invested in index constituents, including certificates of deposit, commercial papers and corporate bonds. The remaining portion can be invested in cash and money market instruments.
The underlying index is restricted to AAA-rated financial services issuers. Its methodology caps exposure at 15% per issuer and 25% at the group level, with the index rebalanced quarterly.
The scheme is designed for the 3-6 month maturity segment. According to the fund house, the strategy seeks to earn accrual income and potential gains as securities mature or roll down the short-term yield curve.
The fund has been assigned a “Low to Moderate” risk level. The minimum investment is ₹5,000 and in multiples of ₹1 thereafter. An exit load of 0.25% applies if units are redeemed or switched out within 30 days of allotment, while no exit load applies thereafter.
