Axis Mutual Fund on March 22, 2023 announced the launch of the new fund offer (NFO) of Axis S&P 500 ETF Fund of Fund. The open-ended fund of fund will invest in exchange-traded funds (ETFs) replicating S&P 500 TRI, subject to tracking errors.
The NFO opened on March 22, 2023 and will close on April 5, 2023. The minimum investment will be Rs. 500 and in multiples of Re. 1 thereafter. The exit load will be 0.25 per cent if redeemed and/or switched out within 30 days from the date of allotment, and nil if redeemed later.
Axis Asset Management Company (AMC) announced in a press statement that the scheme will follow a passive investment strategy and try to invest at least 95 per cent of the net assets in units and/or shares of overseas ETFs replicating S&P 500 TRI, subject to the availability of eligible investment amount, with the remaining in debt and money market investments.
The indicative list of overseas ETFs in which the scheme proposes to invest in will be: iShares Core S&P 500 UCITS ETF, HSBC S&P 500 UCITS ETF, and SPDR S&P 500 UCITS ETF, it said.
Axis AMC said the scheme will offer investors benefits of global exposure and sector agnostic investment, along with low cost exposure in the US market together with the potential benefit of rupee depreciation.
Chandresh Nigam, managing director and CEO, Axis AMC said in a statement: “ETFs are soon becoming popular among the various vehicles of investing in passive strategies in India. In India, fund of funds can be considered as an interesting entry point for investors with a longer investment horizon and who wish to diversify their portfolio from a global standpoint. With the launch of the Axis S&P 500 ETF Fund of Fund, we are seamlessly enabling global exposure through passive strategies. The new scheme’s approach aligns with our philosophy of ‘Responsible Investing’ and we believe, will be a notable addition to our portfolio of products.”
