Dailymiorror.News,Hyderabad, December 6th, 2024: Axis Mutual Fund, one among the fastest growing fund houses in India, announced the launch of their New Fund Offer – AXIS CRISIL-IBX AAA BOND NBFC-HFC – JUN 2027 INDEX FUND. The Scheme is an open-ended Target Maturity Index Fund investing in constituents of CRISIL-IBX AAA NBFC-HFC Index – Jun 2027.

The scheme has a moderate interest rate risk and relatively low credit risk. The fund will be managed by Aditya Pagaria. The minimum investment amount is Rs. 5,000/- and in multiples of Rs. 1/- thereafter. Currently, the exit load is Nil.

AXIS CRISIL-IBX AAA BOND NBFC-HFC JUN 2027 INDEX FUND

The investment objective of the scheme is to provide investment returns before fees and expenses that closely corresponds to the total returns of the securities as represented by the CRISIL-IBX AAA NBFC-HFC Index – Jun 2027, subject to tracking error. There is no assurance that the investment objective of the Scheme will be achieved.

The scheme would be allocating 95% to 100% of its underlying assets in Fixed Income Instruments replicating CRISIL-IBX AAA NBFC-HFC Index – Jun 2027 Index and the remaining in Debt and Money Market instruments for liquidity purposes. (Please refer to SID for detailed Asset Allocation & Investment Strategy).

The open-ended nature of such a fund means that investors can use systematic investment and withdrawal facilities to tailor entry and exit in the fund to meet investor objectives. The fund is a passively managed scheme that provides exposure to constituents of CRISIL-IBX AAA NBFC-HFC Index – Jun 2027 and tracks its performance, before expenses.

Furthermore, the Scheme endeavors to follow a Buy and Hold investment strategy in which debt instruments by NBFCs and HFCs would be held till maturity unless sold for meeting redemptions/rebalancing.

The index has 100% allocation to bonds; the eligibility criteria are as follows:

.Issuers in the NBFC (as available in the RBI list of Non-Banking Financial Companies (NBFCs)) and HFC (as available in the list mentioned on the nhb.org.in website) sector with long term conservative rating of AAA with a minimum total amount outstanding of Rs. 400 crores for securities maturing in the eligible period.

.Minimum security level amount outstanding Rs. 100 crores.

.Only listed issuers shall be included in the index. An issuer will be considered to be listed if at least one security of such issuer is listed as evaluated at the inception date of the index.

Top features of the fund include:

  • Index YTM: ~7.70 – 7.75%
  • Low-Cost Passive Investment: A hassle-free solution for investors looking for a relatively low-cost fixed income product
  • High quality portfolio: Predominantly invests in AAA rated assets and balance for liquidity purpose
  • Reduced Bias in Security Selection: As the fund is passively managed and replicates CRISIL-IBX AAA NBFC-HFC Index – Jun 2027, there is reduced bias in security selection
  • Simple and Easy: Target maturity NBFC-HFC sector portfolio. For complete details refer to the Scheme Information Document of the Scheme available on our website

*Axis AMC is not assuring/guaranteeing any returns on investment in the Scheme.

The above features are based on Index details as on 3rd December 2024

Commenting on the launch of the NFO,Mr. B. Gopkumar, MD & CEO, Axis AMC said, “We are thrilled to introduce the AXIS CRISIL-IBX AAA BOND NBFC-HFC – JUN 2027 INDEX FUND, a strategic addition to our suite of debt offerings. This fund provides investors with a unique opportunity to tap into the potential of India’s burgeoning NBFC and HFC sector. By investing in this fund, investors can gain exposure to a diversified portfolio of high-quality, AAA-rated debt securities. The passive nature of this fund ensures transparency and cost-efficiency. “

The new fund offers (NFO) open for subscription between December 6 to December 10, 2024.

For more information, please visit www.axismf.com.