Axis Mutual Fund on September 13, 2024 launched the Axis Crisil-IBX AAA NBFC Index-Jun 2027 Fund. It is an open-ended target maturity fund that seeks to invest in constituents of the Crisil-IBX AAA NBFC Index-Jun 2027 index.
According to Axis Asset Management Company (AMC), it is India’s first non-banking financial company (NBFC) sector-based target maturity mutual fund.
NFO Details
The new fund offer (NFO) opened for subscription on September 13, 2024 and will close on September 23, 2024. The minimum investment amount is Rs. 5,000, and in multiples of Re. 1. There is no entry or exit load.
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For systematic investment plans (SIPs), the minimum investment amount is Rs 1,000 for a minimum of six monthly instalments.
Investment Strategy
The fund seeks to closely replicate the performance of the Crisil-IBX AAA NBFC Index-Jun 2027 index. It will invest a minimum of 95 per cent or even 100 per cent of its assets in fixed-income instruments from the index. The balance, if any, will be allocated to debt and money market instruments.
According to Axis Mutual Fund, the scheme will follow a ‘buy and hold’ investment strategy in order to maintain its debt instrument holdings until maturity, with adjustments made only for redemptions or rebalancing. The scheme’s expected maturity date is June 30, 2027.
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According to Axis Mutual Fund, the scheme is suitable for investors who are seeking income over the target maturity period and are also looking to invest in an open-ended target maturity index fund tracking the Crisil-IBX AAA NBFC Index-Jun 2027 index.
Key Features
The following are the key features of the scheme.
Index Yield to Maturity (YTM): The fund offers an index YTM of 8.12 per cent as on September 9, 2024.
Cost-Effective: It provides a low-cost investment solution with 100 per cent AAA-rated assets.
Passive Management: The fund follows a passive management approach which reduces bias in security selection, thereby offering a simple and predictable investment aligned with its target maturity.
B. Gopkumar, managing director and CEO of Axis AMC said in a statement: “The Axis Crisil-IBX AAA NBFC Index-Jun 2027 Fund is India’s first NBFC sector-based target maturity mutual fund. This fund offers investors the chance to participate in a high-quality portfolio and corresponds with our aim of expanding our passive debt offerings.”
