Aditya Birla SL CRISIL IBX 60:40 SDL + AAA PSU Apr 2026 Index Fund(IDCW)
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Business Overview
The Aditya Birla SL CRISIL IBX 60:40 SDL + AAA PSU Apr 2026 Index Fund is a well-structured investment option designed for conservative investors seeking stable returns. This fund primarily invests in a mix of state development loans (SDLs) and high-rated public sector undertakings (PSUs), ensuring a balanced risk-reward profile. It is ideal for those looking to diversify their portfolio while benefiting from the safety of government-backed securities and AAA-rated bonds.
- Targeted at conservative investors
- Invests in SDLs and AAA-rated PSUs
- Offers a balanced risk-reward profile
- Aims for stable returns over the medium term
- Ideal for portfolio diversification
- Managed by a trusted financial institution
Investment Thesis
Investing in the Aditya Birla SL CRISIL Index Fund offers exposure to a robust promoter group known for credibility and stability. The growth potential in digital services enhances future returns, while its attractive valuation compared to peers makes it a compelling choice for investors seeking long-term gains.
- Strong backing from the Aditya Birla Group, ensuring trust and reliability.
- Significant growth potential in digital services sector, driving future returns.
- Attractive valuation compared to peer funds, presenting a solid entry point.
- Diversified exposure to SDL and AAA PSU bonds, reducing risk.
- Ideal for conservative investors seeking steady income with growth potential.
Opportunity vs Risk
- Diversified exposure to SDL and PSU bonds
- Potential for steady income generation
- Suitable for conservative investors
- Low correlation with equity markets
- Inflation protection through bond holdings
- Interest rate fluctuations impact returns
- Credit risk from PSU bonds
- Market volatility affects NAV
- Limited liquidity compared to equities
- Regulatory changes may impact performance
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10BusinessHighThe fund is invested in a mix of SDL and AAA PSU bonds, which are stable but may lack high growth potential.
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10GrowthHighThe growth in revenue and profits is consistent but limited due to the nature of fixed income investments.
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8ProfitabilityHighROE and ROCE are stable but not exceptional, reflecting the conservative nature of the fund.
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10ValuationHighValuation metrics are reasonable compared to peers in the fixed income space.
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9BalanceHighThe fund maintains a strong balance sheet with low debt levels.
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7GovernanceHighPromoter holding is stable, but there are concerns about transparency in disclosures.
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6DriversGoodGrowth drivers are limited; primarily dependent on interest rate movements.
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6TechnicalsGoodMarket sentiment is neutral with moderate liquidity.