Axis Mutual Fund is launching the Axis CRISIL-IBX AAA Bond Financial Services – Sep 2027 Index Fund tomorrow, offering investors exposure to AAA-rated bonds from the financial services sector for stable returns.
NFO Details
For this index fund, the New Fund Offer (NFO) will begin on November 8 and end on November 21, 2024. The minimum initial investment is Rs. 5,000, with subsequent investments in multiples of Re. 1.
Aditya Pagaria will manage the fund which uses a passive investment approach and keeps a diverse portfolio of AAA-rated bonds from significant financial institutions. These bonds will be held until maturity unless liquidity needs or index rebalancing arise. The fund's riskometer indicates that the invested principal will be at a moderate risk.
The fund would invest 95 per cent to 100 per cent of its assets in fixed-income instruments that replicate the CRISIL-IBX AAA Financial Services – Sep 2027 Index, with the remaining allocated to debt and money market instruments for liquidity purposes, according to Axis Mutual Fund. For liquidity, the remaining amount will be placed in debt and money market instruments. The fund aims to generate returns that, before fees and expenses, are roughly comparable to the overall performance of the CRISIL-IBX AAA Financial Services Index - September 2027.
Commenting on the launch, B. Gopkumar, MD & CEO of Axis AMC, said, “Axis CRISIL-IBX AAA Bond Financial Services – Sep 2027 Index Fund is our first offering in the sectoral Financial services based target maturity mutual fund scheme. Investors have the opportunity to invest in a high-quality, AAA-rated portfolio through this offering. The recently introduced plan will be a significant addition to the passive debt solutions offered by Axis Mutual Fund.”
Who Should Invest?
According to Axis Mutual Fund, the Axis CRISIL-IBX AAA Bond Financial Services Index Fund is intended for investors looking for low-risk, consistent returns over a long period of time. It appeals to those who favor a “buy and hold” strategy and want exposure to high-quality debt within the financial services sector.
