Axis Mutual Fund Files Draft for 2 New Debt Index Funds

Axis Mutual Fund has filed draft papers for 2 new fixed income index schemes: the Axis CRISIL-IBX Financial Services 3-6 Months Debt Index Fund and the Axis CRISIL-IBX Financial Services 9-12 Months Debt Index Fund. Both are open-ended constant maturity index funds that will passively track CRISIL's debt indices for the financial services sector.

Axis CRISIL-IBX Financial Services 3-6 Months Debt Index Fund

This scheme will invest primarily in debt securities forming part of the CRISIL-IBX Financial Services 3-6 Months Debt Index. The fund’s objective is to generate returns in line with the index, before expenses.

The allocation will range between 95% to 100% in index securities, with up to 5% kept in debt and money market instruments, including repos and mutual fund units, for liquidity. There will be no investments in derivatives, overseas securities, structured obligations, or REITs/InvITs.

Units will be offered at ₹10 during the New Fund Offer. Minimum application amount is ₹5,000, with additional purchases allowed from ₹1,000. There is no entry or exit load. NAVs will be declared daily by 11:00 p.m., and redemptions are expected to be processed within three business days.

The scheme offers both Direct and Regular Plans, with Growth and IDCW (Income Distribution cum Capital Withdrawal) options. IDCW, if declared, will be subject to the availability of surplus and applicable taxes.

Axis CRISIL-IBX Financial Services 9-12 Months Debt Index Fund

This scheme follows the same structure but tracks the CRISIL-IBX Financial Services 9-12 Months Debt Index. The investment and operational framework, including asset allocation, plan options, minimum investment criteria, and exit rules are identical to the 3-6 months fund.

Like the other fund, it will not engage in short selling or use of high-risk instruments. The portfolio will be adjusted if index constituents change or if any security falls below investment grade.

Conclusion

Both funds are structured as short-term debt index funds with fixed maturity exposure and limited flexibility outside the prescribed indices. They are pending launch and regulatory approvals.

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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 in the securities market are subject to market risks, read all the related documents carefully before investing.