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SBI Mutual Fund has launched three target maturity funds - SBI CRISIL IBX Gilt Index - June 2036 Fund, SBI CRISIL IBX Gilt Index - April 2029 Fund, and SBI CRISIL IBX SDL Index - September 2027 Fund.
These index funds will invest in constituents of the CRISIL IBX Gilt Index - June 2036 Index, the CRISIL IBX Gilt Index - April 2029 Index and the CRISIL IBX SDL Index - September 2027 Index, respectively.
In a press release, DP Singh, Deputy MD & Chief Business Officer, SBI Mutual Fund said, " Target Maturity Funds can be a good fit for investors in the current rising interest rate scenario as these funds are giving investors the opportunity to invest at current market yields. Further, if the investor stays invested till the maturity of the fund, it can also help in managing the risk associated with change in interest rates cycle. These funds predominantly invest in higher rated instruments such as government securities, AAA rated securities and PSU Bonds. As compared to traditional investment avenues, these funds have higher liquidity as investors have the flexibility to enter and exit the scheme any time.”
