NFO Alert: Axis Mutual Fund Launches Nifty AAA Bond Financial Services – Mar 2028 Index Fund

Axis Asset Management Company Ltd has introduced the Axis Nifty AAA Bond Financial Services – Mar 2028 Index Fund is an open-ended target maturity index fund investing in AAA-rated financial services bonds that form part of the Nifty AAA Financial Services Bond Mar 2028 Index. The fund follows a passive investment approach, tracking the index with minimal deviations, subject to tracking error.

NFO Details

The details of the New Fund Offer (NFO) are as follows:

• NFO Open Date: February 27, 2025
• NFO Close Date: March 4, 2025
• Fund House: Axis Mutual Fund
• Fund Type: Open-ended
• Category: Debt – Target Maturity
• Benchmark: Nifty AAA Financial Services Bond Mar 2028 Index
• Fund Manager: Hardik Shah
• Plans Available: Growth, IDCW
• Lock-in Period: Not applicable
• Exit Load: Nil

Investment Objective

As per the filing, the fund aims to provide returns that correspond closely to the Nifty AAA Financial Services Bond Mar 2028 Index, before expenses. The strategy involves holding the bonds till maturity unless they are sold for redemptions or rebalancing.

Asset Allocation

• 95-100% in fixed-income instruments replicating the Nifty AAA Financial Services Bond Mar 2028 Index
• 0-5% in debt and money market instruments for liquidity management

Risk, Expense Ratio and More

• Risk Level: Moderate (as per SEBI’s riskometer)
• Expense Ratio: Up to 1% of daily net assets
• No Entry Load or Exit Load

• Initial Investment: ₹5,000
• Additional Investment: ₹1,000 in multiples of ₹1
• Minimum Redemption Amount: No specific limit

In case of deviations due to changes in the underlying index, rebalancing is carried out within seven calendar days to maintain alignment with the index.

Listing and NAV Disclosure

• The NAV is calculated and disclosed daily by 11:00 PM on the Axis Mutual Fund and AMFI websites.
• The scheme is expected to reopen for continuous transactions within five business days from allotment.

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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.