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 corresponding to the total returns of the securities, according to an official statement.
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 maturity index fund investing in constituents of CRISIL IBX 50:50 Gilt Plus SDL Index – June 2028, relatively high interest rate risk and relatively low credit risk.
The open ended nature of such a fund means that investors can use systematic investment and withdrawal facilities to tailor entry and exit in the fund to meet investor objectives. Further, these funds do not have lock-ins and hence provide liquidity to investors, should they wish to redeem mid-term without any hassles.
Axis CRISIL IBX 50:50 Gilt Plus SDL Index Fund: Here are important details you need to know
- Expected Scheme Maturity Date: 30th June, 2028
- NFO Date: January 05, 2023 to January 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 would be allocating 95% to 100% of its underlying securities in Debt Instruments comprising CRISIL IBX 50:50 Gilt Plus SDL Index – June 2028, and the remaining in Debt and Money Market instruments.
Top features of Axis CRISIL IBX 50:50 Fund
- Expected Yields: As inflation comes within RBI’s tolerance band, the tightening stance of RBI policy seems to be nearing the end. The current yields on a prevailing 5-year similar portfolio hover around 7.50%. (As of 15th December 2022).
- 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 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 Axis AMC CEO said about the scheme?
In an official statement, Chandresh Nigam, MD and CEO, Axis AMC said the current yield curve presents material opportunities to the investor with a medium to long term investment horizon.
As a fund house that believes in ‘responsible investing’, we believe that the Axis CRISIL IBX 50:50 Gilt Plus SDL June 2028 Index Fund will be a notable add-on to the investor’s passive debt portfolio, he said.
As a passive fund, the product aims to replicate a designated index created by reputed index providers. Furthermore, 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, he added.
