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(An open-ended Target Maturity Index Fund investing in constituents of CRISIL IBX 50:50 Gilt Plus SDL Index – September 2027. Relatively High interest rate risk and Relatively Low Credit Risk)

Fund Snapshot: -

·         An open-ended Target Maturity index fund investing in constituents of CRISIL IBX 50:50 Gilt Plus SDL Index – September 2027. Relatively High interest rate risk and Relatively Low Credit Risk

·         Benchmark: CRISIL IBX 50:50 Gilt Plus SDL Index – September 2027

·         Expected Scheme Maturity Date: 30^th September, 2027

·         NFO Date: February 08 to February 21, 2023

·         Minimum Investment: Rs. 5,000 and in multiples of Rs. 1/- thereafter

·         Fund Manager: Aditya Pagaria and Sachin Jain 

·         Exit Load: Nil

Axis Mutual Fund, one among the fastest growing fund houses in India, announced the launch of their New Fund Offer – Axis CRISIL IBX 50:50 Gilt Plus SDL September 2027 Index Fund. It is an open-ended target maturity index fund investing in constituents of CRISIL IBX 50:50 Gilt Plus SDL Index – September 2027; a relatively high interest rate risk and relatively low credit risk. The new fund will track the CRISIL IBX 50:50 Gilt Plus SDL Index – September 2027. The fund will be managed by Aditya Pagaria and Sachin Jain. The minimum investment amount is Rs. 5,000/- and in multiples of Rs. 1/- thereafter. The exit load is Nil.

Axis CRISIL IBX 50:50 Gilt Plus SDL September 2027 Index Fund

The investment objective of the scheme is to provide investment returns corresponding to the total returns of the securities as represented by the CRISIL IBX 50:50 Gilt Plus SDL Index – September 2027 before expenses, subject to tracking errors. However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.

The scheme would be allocating 95% to 100% of its underlying securities in Debt Instruments comprising CRISIL IBX 50:50 Gilt Plus SDL Index – September 2027 (Please refer to SID for detailed Asset Allocation & Investment Strategy) and the remaining in Debt and Money Market instruments (such as treasury bills and government securities having a residual maturity up to one year. Tri-Party Repos and any other like instruments as specified by the Reserve Bank of India from time to time).

The open ended nature of such a fund means that investors can use systematic investment and withdrawal facilities to tailor entry and exit in the fund to meet investor objectives. The Scheme will be a passively managed scheme by providing exposure to constituents of CRISIL IBX 50:50 Gilt Plus SDL Index – September 2027 and tracking its performance and yield, before expenses. Furthermore, the Scheme will follow Buy and Hold investment strategy in which debt instruments by G-Sec & state government securities will be held till maturity unless sold for meeting redemptions/rebalancing.

Top features of the fund include:

• Potential Yields: As inflation comes within RBI’s tolerance band, the tightening stance of RBI policy seems to be nearing the end; thereby giving an opportunity to invest in this yield curve
• Low Cost Passive Investment: A hassle free solution for investors looking for a low cost fixed income product
• No Bias in Security Selection: As the fund is passively managed and invests in the constituents of CRISIL IBX 50:50 Gilt Plus SDL September 2027 Index, there is no bias in security selection
• Simple and Easy: Target maturity and high quality G-Sec and SDL portfolio with the benefit of indexation

Commenting on the launch of the NFO, Chandresh Nigam, MD & CEO, Axis AMC said, “The current yield curve presents material opportunities to the investor with a medium to long term investment horizon. Axis CRISIL IBX 50:50 Gilt Plus SDL September 2027 Index fund gives an opportunity to investors to invest in a high quality portfolio with minimal default risk. The ‘held to maturity’ nature of target maturity strategies aims to minimize duration risk for investors who remain invested through the life of the fund. The newly launched scheme will be an important add on to Axis Mutual Fund’s portfolio of passive debt offerings”

The new fund offers (NFO) opens for subscription from February 08 to February 21, 2023.

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