An open-ended Target Maturity Index Fund investing in constituents of Nifty AAA Financial Services Bond Mar 2028 Index. A moderate interest rate risk and relatively low credit risk.
Chandigarh: Axis Mutual Fund, one among the fastest growing fund houses in India, announced the launch of their New Fund Offer – AXIS Nifty AAA Bond Financial Services – Mar 2028 Index Fund. It is an open-ended target maturity index fund investing in constituents of Nifty AAA Financial Services Bond Mar 2028 Index, a moderate interest rate risk and a relatively low credit risk. Managed by Hardik Shah (Fund Manager), the new fund will follow the Nifty AAA Financial Services Bond Mar 2028 Index benchmark. The minimum investment amount is Rs. 5,000/- and in multiples of Rs. 1/- thereafter. The fund does not have an exit load and the NFO period is from 27th Feb 2025 to 04th Mar 2025.
Fund Snapshot: –
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Benchmark: Nifty AAA Financial Services Bond Mar 2028 Index
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Expected Scheme Maturity Date: 31st March 2028
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NFO Date: 27th Feb 2025 to 04th Mar 2025
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Minimum Investment: Rs. 5,000 and in multiples of Rs. 1/- thereafter
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Fund Manager: Hardik Shah
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Exit Load: Nil
The investment objective of the scheme is to provide investment returns before fees and expenses that closely correspond to the total returns of the securities as represented by the Nifty AAA Financial Services Bond Mar 2028 index, subject to tracking error/ tracking difference. There is no assurance that the investment objective of the Scheme will be achieved.
The scheme will allocate 95% to 100% of its underlying assets to fixed income instruments that replicate the index, with the remaining portion invested in debt and money market instruments to maintain liquidity. For detailed asset allocation and investment strategy, please refer to the SID.
The open-ended structure of the fund allows investors to utilize systematic investment and withdrawal facilities, providing flexibility to tailor their entry and exit according to individual objectives. This is a passively managed scheme, and the fund aims to implement a Buy and Hold strategy, where debt instruments within the Financial Services sector are held until maturity, unless sold to meet redemptions or for rebalancing purposes.
Commenting on the launch of the fund, Mr. B. Gopkumar, MD & CEO, Axis AMC said, “We are pleased to introduce the Axis Nifty AAA Bond Financial Services – Mar 2028 Index Fund, an important addition to our growing range of passive debt offerings. This new scheme provides investors with an opportunity to invest in a high-quality, AAA-rated portfolio focused on the Financial Services sector. With its target maturity structure, the fund aims to provide a predictable and stable investment avenue, ideal for those seeking to balance risk and return over the fund’s term. As we continue to innovate and expand our offerings, this launch reinforces our commitment to providing cost-effective investment solutions that cater to the diverse needs of our investors.”
Key Attributes of the Fund
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Index YTM: Tailored to offer a clear yield to maturity based on the underlying index, providing investors with a speculative return profile. Currently YTM of the Index is at 7.69% as on 25th Feb, 2025.
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Low-Cost Passive Investment: A cost-efficient, hassle-free solution for investors seeking exposure to fixed income without the high fees associated with actively managed funds.
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High-Quality Portfolio: Focused on investing in AAA-rated assets, ensuring a high degree of protection and stability, with a small portion allocated for liquidity needs.
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Reduced Bias in Security Selection: Being a passively managed fund that replicates its benchmark, it ensures minimal bias in the selection of securities, maintaining transparency and consistency.
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Simple and Easy: A straightforward investment strategy focused on a target maturity portfolio within the Financial Services sector, offering clarity and simplicity to investors.
