All You Need To Know About Axis Nifty500 Value 50 ETF

Axis Mutual Fund Limited has filed a scheme information deed (SID) for a new exchange-traded fund (ETF), Axis Nifty500 Value 50 ETF. It is an open-ended ETF replicating/tracking Nifty500 Value 50 TRI. The investment objective of the scheme is to provide returns before expenses that correspond to Nifty500 Value 50 TRI, subject to tracking errors. The scheme units will be listed on NSE and BSE.

Allocation of Money

The fund manager will invest in the instruments listed below:

• Equity and Equity Related Instruments  
• Derivatives  
• Debt and Money Market Instruments  
• Short Term Deposits  
• Units of debt & liquid Mutual Fund Schemes

Investment Strategies

The scheme would track the benchmark index and invest in stocks that comprise the underlying index. To meet the liquidity and expense criteria and follow the asset allocation pattern, the Scheme may also invest in debt and money market instruments. The Scheme will, to the degree feasible, invest in equities that comprise the underlying Index in the same ratio as the index and, so, use a passive investment approach, with the exception of the amount necessary to satisfy liquidity and expense criteria. 

Minimum Application Amount

During the NFO period, an investor is required to make a minimum investment of ₹5,000 and in multiples of ₹10.

Risks Involved

The scheme is primarily exposed to risk factors mentioned below:

• Market Risk
• Regulatory Risk
• Liquidity Risk
• Settlement Risk

Scheme Suitable for Investors

The scheme is suitable for investors seeking:

• Long-term wealth creation solution 
• To track returns by investing in a basket of Nifty500 Value 50 Index securities and aims to achieve total returns of the stated index, subject to tracking error.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.