Upcoming NFO: Axis Mutual Fund Files for Axis Nifty MidSmallcap 400 Index Fund

Axis Mutual Fund has filed the Scheme Information Document for the Axis Nifty MidSmallcap 400 Index Fund. The open-ended scheme will track the Nifty MidSmallcap 400 Total Returns Index (TRI).  

The index comprises the Nifty Midcap 150 and Nifty Smallcap 250 indices, covering mid-cap and small-cap companies.  

Investment Allocation 

The scheme aims to provide returns, before expenses, corresponding to the Nifty MidSmallcap 400 TRI, subject to tracking error. Achievement of this objective is not assured. 

Between 95% and 100% of its assets will be invested in shares forming part of the index, in their respective index weights. The remaining 0% to 5% may be held in money market instruments and units of debt and liquid mutual fund schemes for liquidity requirements. 

The fund will follow a passive strategy. It may use equity derivatives for hedging, portfolio rebalancing and other permitted purposes, with exposure of up to 15% of net assets for each specified purpose, subject to regulations. 

Plans and Minimum Investment 

The scheme will offer Regular and Direct plans, each with a Growth option and a common portfolio. The minimum investment during the NFO and on an ongoing basis will be ₹100, with additional investments in multiples of ₹1. 

The Nifty MidSmallcap 400 TRI will be the benchmark. The index will be reconstituted and rebalanced in March and September each year. Additional changes may follow specified corporate actions or suspension of a constituent. 

Redemption and Exit Load 

Units will be available for subscription and redemption on business days at applicable NAV-based prices. Redemption proceeds will ordinarily be dispatched within three working days of receiving a request. 

An exit load of 0.25% will apply to units redeemed or switched out within 15 days of allotment. No exit load will apply thereafter. 

The New Fund Offer (NFO) opening and closing dates have not been mentioned in the document. 

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Conclusion 

The scheme will track mid-cap and small-cap stocks through the Nifty MidSmallcap 400 TRI. Returns may differ from the index because of expenses and tracking error. 

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 the related documents carefully before investing.