NFO Alert: Axis Mutual Fund launches CRISIL-IBX AAA Bond Financial Services - Sep 2027 Index Fund

Axis Mutual Fund has announced the launch of Axis CRISIL-IBX AAA Bond Financial Services - Sep 2027 Index Fund, an open-ended target maturity index fund investing in constituents of CRISIL-IBX AAA Financial Services Index – Sep 2027 with a moderate interest rate risk and relatively low credit risk.

The new fund offer or NFO of the scheme will open for subscription on November 8 and will close on November 21.

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The investment objective of the scheme is to provide investment returns before fees and expenses that closely correspond to the total returns of the securities as represented by the CRISIL-IBX AAA Financial Services Index – Sep 2027, subject to tracking error/ tracking difference.

The scheme will be benchmarked against CRISIL-IBX AAA Financial Services Index – Sep 2027 and will be managed by Aditya Pagaria.

The scheme will offer regular and direct plans both with growth and IDCW options. The minimum application amount is Rs 5,000 and in multiples of Re 1 thereof. The minimum additional purchase amount is Rs 1,000 and in multiples of Re 1 thereof. The minimum amount for monthly SIP is Rs 1,000 and in multiple of Re 1 with minimum six installments.

The scheme will allocate 95-100% in fixed income instruments replicating CRISIL-IBX AAA Financial Services Index – Sep 2027 and 0-5% in debt and money market instruments.

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The maximum total expense ratio (TER) permissible under Regulation 52(6)(b) is upto 1%.

The scheme will follow a buy and hold investment strategy in which debt instruments issued by the financial services sector will be held till maturity unless sold for meeting redemptions/rebalancing.

The scheme is suitable for investors who are seeking income over the target maturity period and want an open ended target maturity index fund tracking CRISIL IBX AAA Financial Services Index – Sep 2027, subject to tracking error/tracking difference.

The principal invested in the scheme will be at “moderate risk” according to the riskometer of the scheme.