| Highlights: –An open-ended Target Maturity Fund of Fund scheme investing in units of Axis AAA Bond Plus SDL ETF – 2026 Maturity -Benchmark – Nifty AAA Bond Plus SDL Apr 2026 50:50 Index –Minimum Investment: Rs. 5,000 and in multiples of Re. 1/- thereafter -NFO Period: September 30, 2021 to October 13, 2021 |
October 4, 2021: Axis Mutual Fund, one of the fastest growing fund houses in India, today announced the launch of their new fund offer – ‘Axis AAA Bond Plus SDL ETF 2026 Maturity FoF’. The benchmark index has a maturity date of April 30, 2026. The fund of fund is an extension to the AxisAAA Bond Plus SDL ETF – 2026 Maturity which was launched in May 2021. The offering aims to provide passive long term debt investment solution for investors with a 5-year investment horizon. The fund of fund will deploy its assets predominantly in the underlying ETF which invests across AAA corporate bonds and SDLs
Key offerings of the fund:
- Opportunity – The 5 Year AAA space offers an interesting opportunity to investors and has seen yields rise by over 50 bps given the selloff since December 2020
- Core Allocation – Ideal solution for investors looking to invest with a 5-year investment horizon
- Product Mechanism – Low cost hassle free solution for investors looking to build their core fixed income portfolio
- Simple and Easy–Works like a traditional mutual fund hence investors can invest regularly without a demat account
Why invest inAxis AAA Bond Plus SDL ETF 2026 Maturity FoF?
The FoF is an ideal solution for investors who wish to participate in the passive strategy and who prefer to deal with the mutual fund directly similar to traditional mutual funds.
Target maturity products are ideally suited to build core fixed income portfolios since investors can match the maturity of the investment products with the gestation period of their goals. The fund provides investors a defined tenure ofclose to 5 years. 5 year yields especially on the AAA and SDL curves have witnessed the largest retracement as markets have begun factoring improving macro-economic data and the gradual end the accommodative monetary policy by the RBI.
On the launch of the NFO, Mr. Chandresh Nigam, MD & CEO, Axis AMC said,“The debt space has seen a slew of target maturity products across various maturities and asset types. The idea of having an open ended structure with a defined maturity is an evolution brought on by passive products. With this FoF offering we hope to expand the availability of such solutions to investors who donot hold demat accounts and prefer to deal with the AMC directly.”
