Axis Mutual Fund introduces Axis AAA Bond Plus SDL ETF-2026 Maturity Fund of Fund

Sep 30, 2021

Axis Mutual Fund has launched an open-ended Target Maturity Fund of Fund Scheme - Axis AAA Bond Plus SDL ETF-2026 Maturity Fund of Fund.

The scheme will be predominantly investing in units of Axis AAA Bond Plus SDL ETF - 2026 Maturity ETF, an open ended Target Maturity ETF investing predominantly in constituents of Nifty AAA Bond Plus SDL Apr 2026 50:50 Index.

The investment objective of the scheme is to invest in units of Axis AAA Bond Plus SDL ETF - 2026 Maturity ETF, an open-ended Target Maturity Exchange Traded Fund with objective to replicate Nifty AAA Bond Plus SDL Apr 2026 50:50 Index by investing in bonds of issuers rated AAA and state development loans (SDL), subject to tracking errors. However, there can be no assurance that the investment objective of the Scheme will be achieved.

Axis AAA Bond Plus SDL ETF-2026 Maturity Fund of Fund is mandated to invest 95% to 100% of its net assets in Units of Axis AAA Bond Plus SDL ETF - 2026 Maturity ETF. It can invest 0% to 5% of the net assets in Debt and Money Market instruments.

Accordingly, Axis AAA Bond Plus SDL ETF - 2026 Maturity Fund of Fund will follow a passive investment strategy and will invest in units of Axis AAA Bond Plus SDL ETF - 2026 Maturity ETF.

The fund manager will not make any judgments about the investment merit of the underlying securities or ETF nor will it attempt to apply any economic, financial or market analysis.

The scheme shall invest all of its funds’ assets in units of Axis AAA Bond Plus SDL ETF - 2026 Maturity ETF, except to meet its liquidity requirements

Axis AAA Bond Plus SDL ETF-2026 Maturity’s performance will be benchmarked against Nifty AAA Bond Plus SDL Apr 2026 50:50 Index.

The fund will be managed by Mr Aditya Pagaria.

The NFO opens for subscription on September 30, 2021, and closes on October 13, 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 fund offers Regular Plan and Direct Plan having Growth Option and Income Distribution cum Capital Withdrawal Option (“IDCW”) (Payout and Reinvestment).