What are SDLs?

Bonds/debt securities issued by State Governments. They are the means used by state governments raise funds for their budgetary requirements, from time to time.

What are AAA rated PSU bonds?

Bonds/debt securities issued by Public Sector Undertakings. These undertakings are those in which the central or state government/s or a combination of both, have minimum 51% shareholding. The issuers that have been accorded highest credit rating by CRISIL are accorded AAA status.

Why invest in SDLs & AAA rated PSU Bonds?

• • High quality
  SDLs have sovereign rating similar to G-Secs. Thus, they have practically no credit risk. AAA PSU bonds are corporate bonds of the highest quality thus they have low credit risk




• • Good liquidity
  SDLs trade electronically on RBI managed platforms. AAA rated PSUs too trade in high volumes. Thus, both of these securities enjoy good liquidity.

Why should you invest in Aditya Birla Sun Life CRISIL SDL Plus AAA PSU Apr 2027 60:40 Index Fund?

• • Reasonable Returns
  The fund invests in securities that have pre-determined interest rates. This means investors can know the returns to expect from the fund.




• • Target Maturity strategy makes them ideal for goal planning
  The scheme has a fixed maturity date - all constituents of the fund mature by April 2027. Thus, investors not only know what returns to expect but also when to expect them. This strategy suit goal based financial planning




• • High quality
  SDLs have sovereign rating, the PSU bonds selected are AAA rated. Thus, the fund has fairly low credit risk.




• • Liquidity
  The fund is open-ended with no entry and exit load (beyond initial 30 days). Thus, investors enjoy high liquidity throughout the fund tenure.




• • Tax efficiency
  The maturity of the fund is more than 36 months away – this means if an investor held this fund till maturity, the capital gains earned by the fund will enjoy indexation benefit. Investors can thus get better tax-adjusted returns.




• • Low costs and low minimums
  Following a passive investing strategy, the fund has a lower expense ratio. Investors also get access to SDLs and PSU bonds with investments as low as Rs.500, which otherwise call for high investment amounts.

Product Labelling

For more information on the scheme, please refer to SID/KIM of the scheme.