Axis Mutual Fund announced on January 5 the launch of Axis CRISIL IBX 50:50 Gilt Plus SDL June 2028 Index Fund.
It is an open-ended target maturity index fund investing in constituents of CRISIL IBX 50:50 Gilt Plus SDL Index – June 2028.
The new fund offer (NFO) opened on January 5 and will close on January 16, 2023 and the fund will be managed by Kaustubh Sule and Hardik Shah. This is a scheme with relatively high interest rate risk and relatively low credit risk.
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The benchmark index for the mutual fund scheme is CRISIL IBX 50:50 Gilt Plus SDL Index – June 2028 and the minimum investment amount is ₹5,000 and in multiples of ₹1 thereafter and there is no exit load.
This scheme is suitable for investors who are seeking income over the long term, as press release.
According to the fund house, the investment objective of the scheme is to provide investment returns corresponding to the total returns of the securities as represented by the CRISIL IBX 50:50 Gilt Plus SDL Index – June 2028 before expenses, subject to tracking errors.
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The scheme will follow a buy and hold investment strategy in which debt instruments by G-Sec & state government securities will be held till maturity unless sold for meeting redemptions/rebalancing.
The scheme would be allocating 95 percent to 100 percent of its underlying securities in debt Instruments comprising CRISIL IBX 50:50 Gilt Plus SDL Index – June 2028 (in the same weightage as in the Index) and the remaining in debt and money market instruments (only treasury bills and government securities having a residual maturity up to one year).