Axis CRISIL-IBX AAA Bond NBFC-HFC – Jun 2028 Index Fund Files Draft With SEBI

Axis CRISIL-IBX AAA Bond NBFC-HFC – Jun 2028 Index Fund is a target maturity index fund that invests in quality debt securities. The fund tracks the CRISIL-IBX AAA NBFC-HFC Index – Jun 2028, focusing on bonds issued by non-banking financial companies (NBFCs) and housing finance companies (HFCs) rated AAA.

Investment Objective

The scheme aims to generate returns that closely match the CRISIL-IBX AAA NBFC-HFC Index before accounting for fees and expenses. It follows a passive investment strategy and holds bonds until maturity unless rebalancing or redemptions require changes.

Asset Allocation

The fund allocates 95-100% of its assets to securities from the CRISIL-IBX AAA NBFC-HFC Index. The remaining 0-5% is kept in debt and money market instruments for liquidity purposes. No investments are made in derivatives, credit-enhanced instruments, or securities with structured obligations.

Risk and Returns

The fund comes with relatively high interest rate risk but low credit risk. As it primarily invests in AAA-rated bonds, the credit risk is minimal. However, returns may vary slightly due to tracking errors or differences between the index and the fund’s holdings.

Expense Ratio and Costs

The total expense ratio is capped at 1% of the fund’s daily net assets, with a lower cost for the Direct Plan as it excludes distributor commissions. There is no entry or exit load, and the units are priced at ₹10 during the New Fund Offer (NFO) phase.

Liquidity and Redemption

Units can be redeemed or subscribed to at NAV-based prices on business days. Redemption proceeds are dispatched within three working days under normal circumstances.

This fund is suited for investors with a medium to long-term horizon who are looking for predictable returns and can accept interest rate risk. The scheme also provides options for systematic investments and withdrawals, offering flexibility.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.