Conservative investors often turn to debt investments to meet their fixed-income needs. However, these investments may sometimes fall short in terms of returns and can carry interest rate risk due to potential fluctuations in interest rates.

Constant maturity funds are debt-based index funds that track an underlying debt index designed to maintain a consistent maturity profile. Short-term constant maturity funds can help mitigate interest rate risk for fixed-income investors.

Within this short-term maturity range, debt instruments from the financial services sector are currently offering yields higher than those of their peers. This is due to the sector's improving performance and profitability. Positive demographic trends are driving greater credit demand, while the sector’s improving financial health enhances its credit offerings and reduces risk for investors.

Additionally, AAA-rated debt from this sector ensures high quality and minimizes credit risk for investors.

The Aditya Birla Sun Life CRISIL-IBX Financial Services 3 to 6 Months Debt Index Fund is a sectoral constant maturity fund that invests in a portfolio of AAA-rated financial services sector debt with a constant duration of 3 to 6 months, as represented in the underlying index. These debt securities are currently available at higher yields, and their robust performance potential reduces credit risk for investors. The fund's constant maturity strategy also helps keep interest rate risk at low levels.

“DIRF data is available in the Forms & Downloads section under Portfolio -> Monthly”