Axis CRISIL IBX AAA Bond NBFC – Jun 2028 Index Fund Filed Draft Papers

The Axis CRISIL-IBX AAA Bond NBFC – Jun 2028 Index Fund is an open-ended target maturity index fund. It invests in AAA-rated bonds issued by non-banking financial companies (NBFCs) and aims to track the CRISIL-IBX AAA NBFC Index – Jun 2028. The fund has a defined maturity of June 30, 2028.

Investment Objective

The fund’s objective is to deliver returns aligned with the performance of its benchmark index. It follows a passive investment approach, mirroring the index’s constituents while maintaining tracking error within permissible limits.

Asset Allocation

The portfolio primarily consists of 95-100% fixed-income instruments corresponding to the CRISIL-IBX AAA NBFC Index. Up to 5% of assets may be allocated to money market instruments for liquidity purposes. Repo and reverse repo transactions in corporate debt are also allowed, capped at 5% of net assets.

Features

• Expense Ratio: Capped at 1% of daily net assets.
• Minimum Investment: Investors can begin with ₹5,000 during the New Fund Offer (NFO) and subsequent investments start from ₹1,000.
• Liquidity: Units can be redeemed on any business day, with redemption proceeds processed within three working days.
• No Entry/Exit Loads: Investors are not charged any additional fees for purchasing or redeeming units.

Risk Factors

The scheme is subject to interest rate risk, where bond prices may fluctuate with changes in interest rates. However, credit risk is low as it invests in AAA-rated instruments. 

Suitability

This fund is ideal for those looking for predictable returns and low credit risk over the medium term. It provides an opportunity to invest in quality NBFC bonds with a fixed maturity timeline, making it suitable for conservative investors.

The fund’s Net Asset Value (NAV) is updated daily and disclosed by 11 PM on the Axis Mutual Fund website and AMFI portal.

Want to plan regular withdrawals? Our SWP Calculator helps you calculate how much you can withdraw while keeping your investments intact. Try it now!

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.