Axis Mutual Fund Launches AAA Bond Index Fund Jun 2027..

varahi media.com online news,Mumbai, December 6th, 2024: Axis Mutual Fund, one of India’s fastest-growing fund houses, has unveiled its latest New Fund Offer (NFO) – the AXIS CRISIL-IBX AAA BOND NBFC-HFC – JUN 2027 INDEX FUND. This open-ended Target Maturity Index Fund focuses on investments in the constituents of the CRISIL-IBX AAA NBFC-HFC Index – Jun 2027.

Designed for investors seeking moderate interest rate risk and low credit risk, the scheme will be managed by Aditya Pagaria.

• Minimum Investment: ₹5,000 (in multiples of ₹1 thereafter)
• Exit Load: Nil
• Launch Type: Open-ended
• Risk Profile: Moderate interest rate risk; relatively low credit risk

The scheme aims to deliver investment returns (before fees and expenses) that closely match the performance of the CRISIL-IBX AAA NBFC-HFC Index – Jun 2027, subject to tracking error. The fund will allocate 95%-100% of its portfolio to fixed-income instruments replicating the target index and the remainder to debt and money market instruments for liquidity purposes.

Features and Benefits

1. Target Maturity Approach: The fund employs a buy-and-hold strategy, retaining debt instruments issued by AAA-rated NBFCs and HFCs until maturity (unless redeemed or rebalanced).
2. Passively Managed Portfolio: Tracks the CRISIL-IBX AAA NBFC-HFC Index – Jun 2027, reducing biases in security selection.
3. Systematic Investment Options: The open-ended nature facilitates systematic investment and withdrawal, offering tailored entry and exit strategies.
4. High-Quality Portfolio: Predominantly invests in AAA-rated assets for reliability and stability.
5. Low-Cost Investment: Offers a cost-effective way to invest in a high-quality fixed-income product.

The CRISIL-IBX AAA NBFC-HFC Index comprises bonds from issuers in the NBFC and HFC sectors, with specific eligibility criteria:

• Issuer Requirements:
  • AAA rating (conservative long-term)
  • Minimum outstanding of ₹400 crores for eligible securities
• Security-Level Minimum Outstanding: ₹100 crores
• Listing Status: Only listed issuers are included.

Expected Yield

The index yield-to-maturity (YTM) is estimated at ~7.70%-7.75%, making it an attractive option for fixed-income investors.

Axis Mutual Fund emphasizes that while the scheme provides exposure to high-quality instruments, it does not guarantee returns. Investors are encouraged to review the Scheme Information Document (SID) available on the Axis Mutual Fund website for complete details.

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