Kotak CRISIL-IBX FinServ 3-6 Months Debt Index Fund Offered; NFO closes on 05/03/2025
FinTech BizNews Service
Mumbai, February 23, 2025: Kotak Mahindra Asset Management Company has launched
the Kotak CRISIL-IBX Financial Services 3-6 Months Debt Index Fund, an open-ended Constant
Maturity Index Fund tracking the CRISIL-IBX Financial Services 3- 6 Months Debt Index.
A relatively low interest rate risk and relatively low credit risk. The New Fund Offer (NFO) has opened on
21st February 2025 and will close on 5th March 2025, providing investors with an
opportunity to invest in a structured, short-term fixed-income solution.
The investment objective of the scheme is to generate returns similar to the CRISIL-IBX Financial
Services 3 - 6 Months Debt Index. This index tracks the performance of Commercial Papers (CPs),
Certificates of Deposit (CDs), and corporate bonds that mature within 3 - 6 months
Abhishek Bisen, Head of Fixed Income at KMAMC, said, "The Kotak CRISIL-IBX Financial Services 3-6
Months Debt Index Fund aligns closely with the underlying index, maintaining portfolio aggregates in
sync with the benchmark. In line with the constant maturity profile of the underlying index, the
scheme follows a perpetual structure, wherein the scheme would be rebalanced as per the set
frequency and remain in line with the maturity profile. Additionally, the fund aims to leverage the roll-
down strategy, benefiting from demand for short-term securities while investing in CPs, CDs, and
bonds within the 3-6-month duration, making it a potential option for investors seeking income
through exposure to shorter-term maturity on the yield curve.”
The scheme will invest in AAA-rated corporate bonds, CPs, and CDs issued by financial institutions. It
offers a fixed duration and maintains a constant maturity profile, providing consistent exposure to a
specific duration. Moreover, Constant Maturity Index Funds typically do not have entry or exit loads,
making them cost-efficient.
The scheme has opened for public subscription on 21st February 2025 and will close on 5th March 2025.
Investors can invest a minimum amount of Rs 100 and in any amount thereafter.
