Investment Strategy 
The scheme seeks to provide regular income and capital growth with limited interest rate risk to the investors through investments in a portfolio comprising of debt instruments such as Government Securities, PSU & Corporate Bonds and Money Market Instruments maturing on or before the maturity of the scheme. 

Basic Details

About Benchmark Index 
CRISIL Short Term Bond Fund Index seeks to track the performance of a debt portfolio that includes government securities, AAA/AA rated corporate bonds, Commercial Papers and Certificates of Deposit. 

Features 
● Total Return Index seeking to capture coupon and price returns of the underlying portfolio 
● Base date for the Index : March 31, 2002 
● Index portfolio marked-to-market on a daily basis using CRISIL Gilt and Bond valuations 
● Index is fully invested at all points of time with no cash component 
● Derived index from the following sub-indices 
− CRISIL Gilt Index 
− CRISIL AAA Short Term Bond Index 
− CRISIL AA Short Term Bond Index 
− CRISIL Composite CP Index 
− CRISIL Composite CD Index 

Key Characteristics 
● Rich history: CRISIL Short Term Bond Fund Index has an inception date of March 31, 2002. Thus the index has been in existence over a decade, seen multiple interest rate cycles, and has stood the test of time 
● Liquidity: The index seeks to capture the movement in a portfolio consisting of most liquid government and corporate securities by using appropriate market representation 
● Replicability: The index constituents are valued on a daily basis. This lends the index a realistic approach by having the valuations close to the market levels

Methodology 
● Weights to each of the sub-indices rebalanced annually based on market polls 
● Index valued on a daily basis using CRISIL Valuation services 

CRISIL Short Term Bond Fund Index Details – March 01, 2018

Study about Benchmark Index in details