For short term financial goals, investors tend to opt for debt-based investments. These are preferred for their relative stability.

Within the debt securities space, AAA rated corporate bonds tend to offer better yields than other similar debt instruments.

Bonds of financially strong companies can lower credit risk for investors, which is an important factor for short term, fixed-income investors. NBFCs and HFCs within the financial services sector, is one such example. With Y-o-Y improving financial position and significant growth drivers, this segment has a positive business outlook making their bond offerings less risky for investors.

Additionally, NBFC-HFC’s bonds are currently offering significantly higher yields at the short-term mark when compared to other debt securities.

Target maturity funds provide a strategic way to invest in this sector. These funds employ a passive, index-based strategy, mirroring a specific index by investing in debt securities with a known maturity date.

Target maturity funds can be an ideal way to tap into this NBFC-HFC investment opportunity. These are debt mutual funds that employ a passive, index-based strategy. They aim to mirror the portfolio of a specific index by investing in a collection of debt securities included in that index, all of which have a defined and known maturity date.

This target maturity strategy not only allows investors to better plan their short-term financial goals but also eliminates duration risk (when held till maturity) and moderates interest rate risk.

Aditya Birla Sun Life CRISIL-IBX AAA NBFC-HFC Index – Dec 2025 Fund is a sectorial target maturity fund that invests in a portfolio of AAA rated NBFC-HFC bonds comprised in the underlying index. These bonds are available at higher yields today and their promising financial performance also reduces credit risk for investors.

The fund is suited for a short term, up to the maturity date of December 31, 2025.