Upcoming NFO: Axis Mutual Fund Files for Axis Nifty Next 50 ETF

Axis Mutual Fund has filed the Scheme Information Document for the Axis Nifty Next 50 ETF, an open-ended exchange-traded fund (ETF) that will track the Nifty Next 50 Total Returns Index (TRI).  

The scheme will invest in the 50 companies that form part of the index and aim to provide returns corresponding to its performance, before expenses.  

The returns will be subject to tracking error and tracking difference. The fund house has stated that there is no assurance that the investment objective will be achieved. 

Investment Allocation 

The scheme will follow a passive investment strategy, with its portfolio comprising stocks included in the Nifty Next 50 Index. Investments will be made in the same proportions as the weight assigned to each stock in the index. 

Under normal market conditions, 95% to 100% of the scheme's assets will be invested in these stocks. The remaining 0% to 5% can be allocated to money market instruments and units of debt and liquid mutual fund schemes. 

The scheme may also invest up to 20% of its net assets in equity derivatives of companies forming part of the index. This provision will apply when securities are not sufficiently available for purchase or when portfolio rebalancing is required. 

Minimum Investment and Other Details 

The units will be issued at ₹10 each during the New Fund Offer (NFO). The minimum application amount has been set at ₹5,000, with additional investments permitted in multiples of ₹10. 

After the NFO, investors will be able to buy and sell units through stock exchanges in lots of one unit.  

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

Fund Management and Expense Ratio 

Nandik Malik and Rohit Gautam have been named as the fund managers. They have 15 years and 14 years of experience, respectively. Both will manage the scheme from its inception. 

The maximum base expense ratio is set at 0.90%. The scheme will have no entry load or exit load under its proposed load structure. 

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Conclusion 

The scheme will track the Nifty Next 50 TRI, with investments largely concentrated in its constituent stocks. Details of the NFO schedule are yet to be announced. 

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.