The new fund offer (NFO) for the scheme is open for subscription and will close on September 23.
The new fund will track the CRISIL-IBX AAA NBFC Index – June 2027 and will be managed by Aditya Pagaria. The minimum investment amount is Rs 5,000, with additional investments in multiples of Re 1. There is no exit load.
The investment objective of the scheme is to provide returns, before fees and expenses, that closely match the total returns of the securities represented by the CRISIL-IBX AAA NBFC Index – June 2027, subject to tracking errors.
The scheme will allocate 95% to 100% of its assets to fixed-income instruments replicating the CRISIL-IBX AAA NBFC Index – June 2027, with the remaining portion invested in debt and money market instruments for liquidity purposes.
The open-ended nature of this fund allows investors to use systematic investment and withdrawal facilities to tailor their entry and exit strategies according to their objectives. The fund is passively managed, providing exposure to the constituents of the CRISIL-IBX AAA NBFC Index – June 2027 and tracking its performance before expenses. It will follow a buy-and-hold investment strategy, with debt instruments issued by NBFCs held until maturity unless sold to meet redemptions or for rebalancing purposes.“Axis CRISIL-IBX AAA NBFC Index – June 2027 Fund is the first NBFC Sector-based target maturity mutual fund scheme in India. It gives an opportunity to investors to invest in a high-quality portfolio. Target Maturity Funds can be a viable option for investors seeking some degree of predictability. The newly launched scheme will be an important add-on to Axis Mutual Fund’s portfolio of passive debt offerings,” said B Gopkumar, MD and CEO, Axis AMC