Axis Mutual Fund: This is an open-ended target maturity index fund investing in the components of CRISIL IBX 50:50 Gilt Plus SDL Index - June 2028, with relatively higher interest rate risk and relatively lower credit risk.
According to an official statement, Axis Mutual Fund has launched a new fund offer 'Axis CRISIL IBX 50:50 Gilt Plus SDL June 2028 Index Fund', which will provide investment returns commensurate with the total returns of the securities.
However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved as it is an open-ended target investing in components of CRISIL IBX 50:50 Gilt Plus SDL Index - June 2028, relatively high interest Maturity is an index fund. Rate risk and relatively low credit risk.
The open-ended nature of such funds means that investors can use the systematic investment and withdrawal facilities to tailor entry and exit into the fund to meet investor objectives. Also, these funds do not have a lock-in and hence provide liquidity to the investors, should they wish to redeem mid-term without any hassle.
Axis Crisil IBX 50:50 Gilt Plus SDL Index Fund: Here are important details you need to know
- Expected Scheme Maturity Date: June 30, 2028
- NFO date: Jan 05, 2023 to Jan 16, 2023
- Minimum investment: ₹5,000 and in multiples of ₹1 thereafter
Fund Manager: Kaustubh Sule and Hardik Shah
- Exit Load: Nil
Fund Composition: The scheme will have 95% to 100% of its underlying securities allocated to CRISIL IBX 50:50 Gilt Plus SDL Index - June 2028, and the balance to debt and money market instruments.
Top Features of Axis Crisil IBX 50:50 Fund
- Expected returns: As inflation falls within the tolerance band of RBI, the tight stance of RBI policy is nearing an end. The current yield on the prevailing 5-year equivalent portfolio is around 7.50%. (by 15 December 2022).
- Low cost passive investment: Hassle free solution for investors looking for low cost fixed income product
- No bias in security selection: Since the fund is passively managed and invests in constituents of CRISIL IBX 50:50 Gilt Plus SDL June 2028 Index, there is no bias in security selection
Simple and easy: Target maturity and high quality G-Sec and SDL portfolio with the benefit of indexation
What did the CEO of Axis AMC say about the scheme?
Chandresh Nigam, MD & CEO, Axis AMC, said in an official statement that the current yield curve presents a material opportunity for an investor with a medium to long-term investment horizon.
As a fund house that believes in 'responsible investing', we believe that Axis CRISIL IBX 50:50 Gilt Plus SDL June 2028 Index Fund will be a remarkable add-on to an investor's passive debt portfolio, he said.
As a passive fund, the objective of the product is to replicate specified indexes maintained by reputed index providers. In addition, the 'held to maturity' nature of target maturity strategies aims to reduce duration risk for investors who remain invested through the life of the fund, he said.
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