Axis Mutual Fund, one of the fastest growing fund houses in India, announced the launch of their new fund offer – Axis CRISIL IBX 50:50 Gilt Plus SDL June 2028 Index Fund. It is an open-ended target maturity index fund investing in constituents of CRISIL IBX 50:50 Gilt Plus SDL Index – June 2028; a relatively high-interest rate risk and relatively low credit risk. The new fund will track the CRISIL IBX 50:50 Gilt Plus SDL Index – June 2028. The fund managers for the scheme are Kaustubh Sule and Hardik Shah. The minimum investment amount is Rs.5,000 and in multiples of Rs.1/- thereafter and there is no applicable exit load.
The top features of the fund include:
- 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 15 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.
Commenting on the launch of the NFO, Chandresh Nigam, MD & CEO, Axis AMC said, “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. 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.”