Axis MF launches Axis Nifty G-Sec September 2032 Index Fund

Fund Snapshot:

• An open-ended Target Maturity Debt index fund investing in constituents of NIFTY G-Sec September 2032 Index. A Relatively High Interest Rate Risk and Relatively Low Credit Risk

• Benchmark: NIFTY G-Sec September 2032 Index

• Expected Scheme Maturity Date: 30th September, 2032

• NFO Date: March 06 to March 13, 2023

• Minimum Investment: Rs. 5,000 and in multiples of Rs. 1/- thereafter

• Fund Manager: Aditya Pagaria and Hardik Shah

• Exit Load: Nil

Kochi: Axis Mutual Fund, one among the fastest growing fund houses in India, announced the launch of their New Fund Offer – Axis NIFTY G-Sec September 2032 Index Fund. It is an open-ended target maturity debt index fund investing in constituents of the NIFTY G-Sec September 2032 Index. Aditya Pagaria and Hardik Shah would be managing the newly launched fund and the minimum investment amount is Rs.5,000 and in multiples of Rs.1 thereafter. The exit load is Nil.

Benchmarked against the NIFTY G-Sec September 2032 Index, the investment objective of the Axis NIFTY G-Sec September 2032 Index Fund is to provide investment returns corresponding to the total returns of the securities as represented by the NIFTY G-Sec September 2032 Index before expenses, subject to tracking errors. However, there is no assurance that the investment objective of the scheme will be achieved.

Investing in Government Securities:

Essentially, Government Securities or G-Secs are Central Government issued securities such as Treasury Bills, Floating Rate Bonds, Zero Coupon Bonds, Capital Indexed Bonds, etc. G-Secs are considered as one of the most liquid instruments traded in the Indian debt market.

The scheme would be allocating 95-100 percent of its portfolio to debt instruments comprising of the NIFTY G-Sec September 2032 Index and the remaining in Debt and Money Market instruments (Please refer to SID for detailed Asset Allocation & Investment Strategy and other scheme related features available at axismf.com). Furthermore, the Scheme will follow Buy and Hold investment strategy in which debt instruments of the respective index will be held till maturity unless sold for meeting redemptions/rebalancing.

Target maturity funds allow investors to access specific maturity buckets. The transparent nature of such a strategy provides investors a clear picture of the portfolio and the instrument mix. As a passive fund, the Axis NIFTY G-Sec September 2032 Index Fund aims to replicate a designated index created by reputed index providers. 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.

Top features of the fund include:

• Potential Yields: As inflation comes within RBI’s tolerance band, the tightening stance of RBI policy seems to be nearing the end; thereby giving an opportunity to invest in this yield curve

• Low Cost Passive Investment: A hassle free solution for investors looking for a low cost fixed income product

• No Bias in Security Selection: As the fund is passively managed and invests in the constituents of NIFTY G-Sec September 2032 Index, there is no bias in security selection

• Simple and Easy: Target maturity and high quality G-Sec portfolio with the benefit of indexation

Commenting on the launch of the NFO, Chandresh Nigam, MD & CEO, Axis AMC said, “The current yield curve presents material opportunities to the investor with a medium to long term investment horizon. Axis NIFTY G-Sec September 2032 Index Fund gives an opportunity to investors to invest in a high quality portfolio with minimal default risk. The newly launched scheme will be an important add on to Axis Mutual Fund’s portfolio of passive debt offerings”

Disclaimer:

This report represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates, or Myinpoint.com shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.