Axis Mutual Fund Introduces Axis Technology ETF
   Mar 18, 2021

Axis Mutual Fund has launched a new scheme - Axis Technology ETF.

It is an open ended Exchange Traded Fund that will track the Nifty IT Index.

Accordingly, the investment objective of the scheme is to provide returns before expenses that closely correspond to the total returns of the NIFTY IT Index subject to tracking errors.

However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.

Under normal circumstances the scheme will invest 95% to 100% of its assets in Equity instruments covered by NIFTY IT Index. A very small portion (0% to 5% of its assets) may be kept in Debt & Money Market Instruments.

Accordingly, Axis Technology ETF would invest in stocks comprising the underlying NIFTY IT index and shall endeavor to track the benchmark index. The Scheme may also invest in debt and money market instruments, in compliance with Regulations to meet liquidity and expense requirements.

As per the scheme information document, the Scheme endeavors to invest in stocks forming part of the underlying in the same ratio as per the index to the extent possible and to that extent follows a passive investment strategy, except to the extent of meeting liquidity and expense requirements.

Events like the constituent stocks becoming illiquid in cash market, the exchange changing the constituents, a large dividend going ex but lag in its receipts, etc tend to increase the tracking error. In such events, it may be more prudent for the Scheme to take exposure through derivatives of the index itself or its constituent stocks in order to minimize the long term tracking error.

Axis Technology ETF’s performance will be benchmarked against NIFTY IT - TRI (Total Return Index).

It will be managed by Mr Jinesh Gopani and Mr Viresh Joshi.

The NFO opens for subscription on March 18, 2021, and closes on March 23, 2021. The scheme will reopen for continuous sale and repurchase within five Business Days from the date of allotment.

The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

The Units of the Scheme will be listed on National Stock Exchange of India Ltd. (NSE) and/or any other recognized stock exchanges as may be decided by AMC from time to time.

The Units of the scheme may be bought or sold on all trading days at prevailing listed price on such Stock Exchange(s).

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