Upcoming NFO: Axis Mutual Fund Files Draft for Nifty EV & New Age Automotive Index Fund

Axis Mutual Fund has filed the Scheme Information Document for Axis Nifty EV & New Age Automotive Index Fund. The scheme is an open-ended index fund that will track the Nifty EV & New Age Automotive TRI.  

Its investment objective is to generate returns corresponding to the index, before expenses and subject to tracking error.  

Portfolio Allocation 

The fund will keep 95% to 100% of its assets in securities forming part of the Nifty EV & New Age Automotive Index.  

Up to 5% can be held in money market instruments and units of debt and liquid mutual fund schemes. The allocation is intended to keep the portfolio aligned with the underlying index.  

Passive Investment Approach 

The scheme will follow a passive investment strategy rather than selecting stocks separately. It will seek to hold the securities in the index in the same proportion as their index weight, subject to liquidity and expense requirements.  

The fund can also use equity derivatives of index constituents up to 15% of net assets for purposes including portfolio balancing and hedging.  

Investment Limits 

The underlying index is required to have at least 10 stocks. A single stock cannot have a weight of more than 35%, while the combined weight of its top three constituents cannot exceed 65%.  

Individual constituents must also meet specified trading frequency and impact-cost requirements.  

Plans and Exit Load 

The scheme will offer Regular and Direct Plans, with the Growth option under both. The minimum application amount is ₹100. 

There is no entry load. An exit load of 0.25% will apply if units are redeemed or switched out within 15 days of allotment. Redemptions after 15 days will not attract an exit load. 

Read More: Upcoming NFO: Bank of India Mutual Fund Files Draft for Aggressive Hybrid Active FOF! 

Conclusion 

The draft document outlines an index fund with the bulk of its portfolio linked to the Nifty EV & New Age Automotive Index. The NFO opening and closing dates have not been specified in the document. 

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 Funds Investments are subject to market risks, read all the related documents carefully before investing.