Axis MF debuts Axis CRISIL IBX 50:50 Gilt Plus SDL Index fund: Check NFO details

Axis Mutual Fund, one of the largest fund houses in India, debuts New Fund Offer – Axis CRISIL IBX 50:50 Gilt Plus SDL September 2027 Index Fund. It is an open-ended target maturity index fund that invests in CRISIL IBX 50:50 Gilt Plus SDL Index constituents with a 30th September 2027 maturity date and has a relatively high-interest rate risk and a relatively low credit risk. Aditya Pagaria and Sachin Jain will co-manage the new fund, which will follow the CRISIL IBX 50:50 Gilt Plus SDL Index until September 2027. The minimum investment amount is Rs. 5,000, and thereafter, multiples of Rs. 1 with no exit load. The NFO date spans from February 08 to February 21, 2023.

The scheme's investment goal is to, subject to tracking errors, deliver investment returns that are equal to the total returns of the securities represented by the CRISIL IBX 50:50 Gilt Plus SDL Index as of September 2027. In the scheme, the CRISIL IBX 50:50 Gilt Plus SDL Index would make up 95% to 100% of the underlying securities, with the remaining securities being allocated to debt and money market instruments such as treasury bills and government securities with a residual maturity of up to one year.

By giving exposure to the constituents of the CRISIL IBX 50:50 Gilt Plus SDL Index - September 2027 and monitoring its performance and yield, before expenses, the scheme would be a passively managed scheme by Axis Mutual Fund. Potential yields, low-cost passive investment, no bias in security selection, target maturity, and high-quality G-Sec and SDL portfolio with indexation benefits are some of the top features of the fund.

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.”

One of India's asset managers with the fastest rate of growth is Axis AMC, which offers a wide range of asset management solutions. Axis Mutual Fund, Axis Securities Ltd., Axis Finance, Axis Trustee, Axis Capital, A.TReDS Ltd., Freecharge, and the Axis Bank Foundation are all part of the Axis Group.