SBI Mutual Fund launched the SBI CRISIL – IBX SDL Index – June 2034 Index Fund, a target maturity index fund tracking the CRISIL – IBX SDL Index – June 2034. The NFO runs from 7-July-2026 to 14-July-2026.
The passive fund invests primarily in State Development Loans (SDLs) to mirror its benchmark.
SBI CRISIL – IBX SDL Index – June 2034 Index Fund: NFO details
Particulars | Details |
Fund name | SBI CRISIL – IBX SDL Index – June 2034 Index Fund |
Fund type | Open ended Target Maturity Index Fund |
Category | Target Maturity Index Fund |
Benchmark | CRISIL – IBX SDL Index – June 2034 Index |
Fund manager | |
NFO open date | 7-July-2026 |
NFO close date | 14-July-2026 |
Allotment / Reopening | 22-July-2026 |
Minimum investment | ₹5,000/- |
Additional investment | ₹1,000/- |
SIP | ₹1,000/- |
NAV during NFO | ₹10/- |
Stamp duty | 0.005% |
Entry load | Nil |
Exit load | Nil |
Company details
Particulars | Details |
AMC name | SBI Funds Management Limited |
AUM | ₹12,88,262 Crores |
Website | |
Address | 9th Floor, Crescenzo, C 38 & 39, G Block, Bandra Kurla Complex, Bandra East, Mumbai 400051 |
Contact number | 022 61793537 |
Source: AMFI India New Fund Offer | SBI CRISIL – IBX SDL Index – June 2034 Index
What has SBI Mutual Fund launched?
SBI Mutual Fund has introduced a target maturity debt fund passively tracking the CRISIL – IBX SDL Index – June 2034 Index. The fund avoids active interest rate calls, focusing on replicating the index with minimal tracking error.
How does the strategy work?
The fund uses a passive strategy, purchasing securities from the CRISIL – IBX SDL Index – June 2034. The portfolio rebalances as the index changes to ensure continued alignment.
The fund provides exposure to various State Government debts by investing primarily in State Development Loans. These securities offer relatively low credit risk, though prices fluctuate with interest rate shifts.
Step by step:
Steps | What happens? |
1 | Investors invest during the NFO or after the scheme reopens. |
2 | The fund invests mainly in SDLs that are part of the CRISIL – IBX SDL Index – June 2034 Index. |
3 | The portfolio mirrors the index instead of actively selecting bonds. |
4 | If the index composition changes, the portfolio is rebalanced accordingly. |
5 | The fund aims to minimise tracking error and closely match index performance. |
6 | As the target maturity approaches, the portfolio maturity gradually reduces. |
7 | Around 30 June 2034, the scheme matures and units are automatically redeemed at the applicable NAV. |
Let’s see through an example
Consider you invest ₹1,00,000 in the scheme.
The fund will invest almost the entire amount in the same SDLs that make up the CRISIL – IBX SDL Index – June 2034 Index. It will not try to predict interest rate movements or switch between different debt securities to generate extra returns.
The fund will make similar changes to its portfolio if the index changes because of rebalancing.
Potential benefits
Potential benefit | Why does it matter? |
Passive investment approach | The fund follows a predefined index, reducing the impact of active fund manager decisions. |
Exposure to State Development Loans | Investors gain access to debt securities issued by various State Governments through a single investment. |
Target maturity structure | Investors know the intended maturity of the portfolio, making it easier to align with long term financial goals. |
Daily liquidity | As an open ended scheme, investors can buy or redeem units on business days at the applicable NAV. |
Low credit risk profile | The portfolio primarily invests in SDLs, which generally have relatively low credit risk compared to many corporate bonds. |
Diversified debt portfolio | The scheme invests across securities forming part of the underlying index instead of relying on a single issuer. |
What are the key risks?
Risk | What does it mean? |
Interest rate risk | If interest rates rise, the value of the underlying bonds may fall, affecting the NAV. |
Tracking error | The scheme may not exactly match the performance of the benchmark because of expenses, cash holdings and operational factors. |
Liquidity risk | Certain debt securities may become difficult to buy or sell during stressed market conditions. |
Market risk | Bond prices can fluctuate because of changes in economic conditions and interest rates. |
Reinvestment risk | Interest or coupon payments may need to be reinvested at lower prevailing interest rates. |
Concentration risk | The portfolio predominantly invests in SDLs, so its performance depends on this segment of the debt market. |
Passive investment risk | The fund does not attempt to avoid securities that may underperform because it simply follows the index. |
Who may consider this fund?
Investor type | Why? |
Long term debt investors | The target maturity structure may suit investors with a similar investment horizon. |
Investors seeking predictable portfolio maturity | The scheme has an expected maturity around June 2034. |
Investors looking for passive debt exposure | The fund tracks an index rather than relying on active security selection. |
Investors comfortable with interest rate movements | Bond prices may fluctuate before maturity. |
Investors seeking portfolio diversification | The scheme can complement an existing investment portfolio with debt exposure. |
Investors who understand index funds | The returns aim to closely match the benchmark rather than outperform it. |
Who may not find it suitable?
Investor type | Why? |
Investors seeking guaranteed returns | Mutual funds do not assure or guarantee returns. |
Investors with a very short investment horizon | Bond prices may fluctuate over shorter periods. |
Investors looking for active fund management | The scheme follows a passive strategy. |
Investors seeking high equity like growth | This is a debt oriented index fund. |
Investors uncomfortable with interest rate risk | Rising interest rates can temporarily reduce bond prices and NAV. |
Investors who may need certainty of capital at all times | Market linked investments can fluctuate before maturity. |
SBI CRISIL – IBX SDL Index – June 2034 Index Fund vs Traditional investment options
Investment option | Return potential | Risk | Complexity |
Fixed Deposit | Low to moderate | Low | Low |
Debt Mutual Fund | Moderate | Moderate | Moderate |
Hybrid Mutual Fund | Moderate to high | Moderate to high | Moderate |
Equity Mutual Fund | High over the long term | High | Moderate |
SBI CRISIL – IBX SDL Index – June 2034 Index Fund | Market linked debt returns that aim to track the underlying SDL index | Moderate, primarily interest rate risk with relatively low credit risk | Low to moderate |
Zenith Finserve’s review
The SBI CRISIL – IBX SDL Index – June 2034 Index Fund provides a passive investment in State Development Loans using a target maturity structure. The fund offers transparency regarding its underlying securities by following a recognized index.
It suits investors seeking long-term income who accept high interest rate risk and low credit risk.
How can Zenith Finserve help?
At Zenith Finserve, we follow a process driven investment framework. We assess your goals, cash flows, risk profile, time horizon, existing investments, loans, and tax situation before suggesting investments.
We align our investment suggestions to match your needs. Then, we review them periodically to keep them aligned with your changing life and financial position.
Frequently Asked Questions
What is the SBI CRISIL – IBX SDL Index – June 2034 Index Fund?
It is an open ended target maturity debt index fund that aims to closely track the CRISIL – IBX SDL Index – June 2034 Index by investing mainly in the securities that form part of the index.
When is the NFO open?
The New Fund Offer opens on 7-July-2026 and closes on 14-July-2026.
What does the fund invest in?
The scheme primarily invests in State Development Loans (SDLs) that are part of the CRISIL – IBX SDL Index – June 2034 Index. It may also invest a small portion in government securities and money market instruments for liquidity management.
Is this an actively managed fund?
No. It is a passive index fund. The fund manager’s role is to replicate the underlying index as closely as possible rather than actively selecting securities.
What is the minimum investment amount?
The minimum investment during the NFO and on an ongoing basis is ₹5,000, while additional purchases can be made from ₹1,000.
Is SIP available?
Yes. The scheme offers Systematic Investment Plan (SIP) facilities with multiple frequencies, including daily, weekly, monthly, quarterly, half yearly and annual options.
Is there any exit load?
No. The scheme does not charge any exit load on redemption.
What are the main risks in this fund?
The key risks include interest rate risk, tracking error, tracking difference, liquidity risk, concentration risk and market risk.
Does the fund guarantee returns?
No. The scheme aims to track its benchmark index, but it does not guarantee returns or capital protection.
Who may consider investing in this fund?
The scheme may be suitable for investors seeking passive exposure to high quality debt securities with a long term investment horizon that broadly matches the target maturity of the fund.
