The new fund offer (NFO) opened on July 7 and will close on July 14.
The open-ended index fund aims to generate returns that closely correspond to the performance of the underlying index, subject to tracking error. The scheme does not guarantee returns.
As a target maturity fund, the scheme will invest predominantly in state development loans (SDLs) that mature around June 2034. According to the scheme information, 95-100% of the corpus will be invested in securities forming part of the underlying index, while up to 5% may be allocated to debt and money market instruments, including treasury bills, commercial paper, certificates of deposit and cash equivalents, for liquidity and portfolio management.
Target maturity funds are passive debt mutual funds that replicate a predefined bond index and hold securities until a specified maturity date, allowing investors to align investments with a particular time horizon.
The scheme has been classified as carrying relatively high interest rate risk and relatively low credit risk, reflecting the sensitivity of long-duration debt investments to changes in interest rates while investing primarily in government-backed state securities.
The minimum investment during the NFO is ₹5,000, with subsequent investments starting at ₹1,000. Investors can also invest through systematic investment plans (SIPs) across multiple frequencies.
The scheme will be managed by Rajeev Radhakrishnan, Chief Investment Officer and Head of Research (Fixed Income) at SBI Funds Management.
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First Published: Jul 7, 2026 12:22 PM IST
