Axis CRISIL IBX SDL June 2034 Debt Index Fund. Axis Mutual Fund, one among the fastest growing fund houses in India, announced the launch of their new fund offer, Axis CRISIL IBX SDL June 2034 Debt Index Fund; an open-ended Target Maturity index fund investing in constituents of CRISIL IBX SDL Index – June 2034 that has a relatively high interest rate risk and relatively low credit risk. The new fund will track the CRISIL IBX SDL Index – June 2034 and will be managed by Mr. Hardik Shah. The minimum investment amount is Rs. 5,000 and in multiples of Rs. 1/- thereafter and there is no applicable exit load.
Axis CRISIL IBX SDL June 2034 Debt Index Fund
The investment objective of the scheme is to provide investment returns corresponding to the total returns of the securities as represented by the CRISIL IBX SDL Index – June 2034 before expenses, subject to tracking errors. However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved. The open-ended nature of such a target maturity fund means that investors can use systematic investment and withdrawal facilities to tailor entry and exit in the fund till maturity to meet investor objectives. (For more information, kindly refer to the SID/KIM on www.axismf.com).
Axis CRISIL IBX SDL June 2034 Debt Index Fund is a passively managed index fund which will employ an investment approach designed to track the performance of CRISIL IBX SDL Index – June 2034. The Scheme will follow Buy and Hold investment strategy in which debt instruments by state government securities will be held till maturity unless sold for meeting redemptions/rebalancing. The Scheme shall replicate the index completely.
Commenting on the launch of the NFO, B. Gopkumar, MD & CEO, Axis AMC said, “The current yield curve presents material opportunities to the investor with a medium to long term investment horizon. As a fund house that believes in ‘responsible investing’, we believe that the Axis CRISIL IBX SDL June 2034 Index Fund will be a notable add-on to the investor’s passive debt portfolio. The portfolio constituents are expected to have in aggregate, key characteristics of the
underlying index in terms of maturity profile and type of securities. Furthermore, 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.”
Key attributes of the CRISIL IBX SDL June 2034 Debt Index fund:
Expected Opportunity: Considering the carry of the index @ 7.40-7.50% (as on 21 Feb 2024)*, investors may stand to benefit from bond rally and potential spread compression.
Core Allocation: As it is a relatively hassle-free solution, it can be considered by investors having a 10-year investment horizon.
Product Mechanics: As the fund is passively managed and invests in the constituents of CRISIL IBX SDL June 2034 Index, there is no bias in security selection. Further, it is a low-cost solution for investors looking to build their core fixed income portfolio.
Simple and Easy: Target maturity and high-quality portfolio offering liquidity since it is open-ended in nature.
The new fund offers (NFO) opens for subscription from 04 March 2024 to 12 March 2024.
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