Nippon India Mutual Fund has announced the launch of two new index funds, both designed to offer investors exposure to AAA-rated financial services securities, with set maturity timelines.

The two schemes track CRISIL-IBX indices, each with different maturity dates: January 2028 and December 2026.

Nippon India CRISIL – IBX AAA Financial Services – Jan 2028 Index Fund

This open-ended index fund aims to mirror the performance of the CRISIL-IBX AAA Financial Services Index – Jan 2028.

The scheme provides an opportunity for investors to tap into AAA-rated financial services securities, with a maturity target of January 2028. The new fund offer (NFO) opens for subscription on October 15, 2024, and closes on October 21, 2024.

The minimum investment required is ₹1,000, with additional investments accepted in multiples of ₹1.

The fund’s objective is to deliver returns that correspond to the index it tracks, though tracking errors may occur. However, there is no guarantee that the scheme’s objective will be achieved.

Nippon India CRISIL – IBX AAA Financial Services – Dec 2026 Index Fund

This scheme is similar to the Jan 2028 index fund but targets a shorter duration, tracking the CRISIL-IBX AAA Financial Services Index – Dec 2026. It also aims to provide investment returns that mirror the index, before expenses, with no assurance that the goal will be fully met due to potential tracking errors.

Investors can subscribe between October 15 and October 21, 2024, with a minimum investment requirement of ₹1,000, and in multiples of ₹1 thereafter.

Both schemes align well with the needs of conservative debt investors seeking to match their investment horizon with the funds’ maturity dates.