The new fund offer (NFO) for the scheme is open for applications and closes on September 23rd.
The new fund will track the CRISIL-IBX AAA NBFC Index for June 2027 and will be managed by Aditya Pagaria. The minimum investment is Rs 5,000 and further investments can be made in increments of 1 Rs. There is no exit charge.
The scheme’s investment objective is to achieve returns before fees and expenses that approximately match the total return of the securities represented by the CRISIL-IBX AAA NBFC Index – June 2027, subject to tracking error.
The scheme will allocate 95% to 100% of assets in fixed income instruments mimicking the CRISIL-IBX AAA NBFC Index June 2027, while the remaining will be invested in bonds and money market instruments to ensure liquidity.
The open-ended nature of the fund allows investors to tailor their entry and exit strategies as per their objectives with systematic investment and withdrawal facilities. The fund is passively managed and provides exposure to the constituent stocks of CRISIL-IBX AAA NBFC Index-June 2027 and tracks their performance before expenses. The fund follows a buy-and-hold investment strategy whereby debt securities issued by NBFCs are held till maturity unless sold for redemption or rebalancing purposes. “Axis CRISIL-IBX AAA NBFC Index-June 2027 Fund is India’s first NBFC sector based target maturity mutual fund scheme. It offers investors an opportunity to invest in a high quality portfolio. Target maturity funds are a viable option for investors seeking some degree of predictability. The newly launched scheme marks an important addition to Axis Mutual Fund’s passive debt offering portfolio,” said B Gopkumar, MD & CEO, Axis AMC.
