Axis Mutual Fund launches Nifty AAA Bond Financial Services Index Fund

Customers can enter scheme with a minimum investment of Rs 5,000, followed by multiples of Rs 1

Axis Mutual Fund has launched an open-ended target maturity index fund investing in constituents of Nifty AAA Financial Services Bond Mar 2028 Index, offering investors a moderate interest rate risk and relatively low credit risk.

 

AXIS Nifty AAA Bond Financial Services – Mar 2028 Index Fund opened on Thursday and will continue till March 4. The scheme’s objective is to provide investment returns before fees and expenses that closely correspond to the total returns of the securities as represented by the Nifty AAA Financial Services Bond Mar 2028 index, subject to tracking error/ tracking difference.

 

The fund will allocate 95-100 per cent of its assets to fixed-income instruments replicating the index, while the remaining portion will be invested in debt and money market instruments to maintain liquidity.

 

The fund follows a buy and hold strategy, ensuring that debt instruments from the financial services sector are held until maturity unless liquidated for redemption or rebalancing. Being a passively managed fund, it minimises biases in security selection, offering transparency and consistency.

 

Key attributes:

 

Index yield to maturity (YTM): Provides a defined yield-to-maturity aligned with the underlying index. As of February 25, 2025, the index YTM stands at 7.69 per cent.

 

Low-cost passive investment: Offers a cost-efficient exposure to high-quality fixed-income securities without the high fees associated with actively managed funds.

 

High-quality portfolio: Focuses on AAA-rated securities, ensuring stability and low credit risk.

 

Flexible investment: Allows systematic investments and withdrawals to tailor investors’ entry and exit strategies.

 

“This new scheme provides investors with an opportunity to invest in a high-quality, AAA-rated portfolio focused on the financial services sector. With its target maturity structure, the fund aims to provide a predictable and stable investment avenue, ideal for those seeking to balance risk and return over the fund’s term,” said B Gopkumar, managing director and chief executive officer of Axis AMC.

 

Who should consider this fund?

 

Investors looking for high credit quality, predictable returns, and relatively lower volatility.

 

Those with an investment horizon aligned with the March 2028 maturity.

 

Investors seeking passive fixed-income exposure with a low-expense structure.

 

Fund detail

 

Benchmark: Nifty AAA Financial Services Bond Mar 2028 Index

 

Expected scheme maturity date: March 31,2028  

 

NFO date: Feb 27, 2025 to Mar 4, 2025  

 

Minimum investment: Rs 5,000 and in multiples of Rs 1 thereafter

 

Fund manager: Hardik Shah

 

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