Axis Mutual Fund launched CRISIL-IBX AAA Bond NBFC-HFC Jun 2027 Index Fund
Axis Mutual Fund launched its latest New Fund Offer (NFO) Axis CRISIL-IBX AAA Bond NBFC-HFC June 2027 Index Fund, which is an open-ended target maturity index fund. The strategy of this fund would be to invest in AAA-rated bonds issued by Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) in line with the CRISIL-IBX AAA NBFC-HFC Index – June 2027. This fund has moderate interest rate risk and relatively low credit risk.
Important Facts of the NFO
The NFO is now open for subscription from December 6 and will close on December 10. The scheme is designed to deliver returns closely aligned with the CRISIL-IBX AAA NBFC-HFC Index – June 2027, net of fees and tracking error.
The minimum amount one needs to invest in this fund is Rs.5,000. Any additional investments are made in multiples of Rs 1. It doesn’t have an exit load. The maturity date for the scheme is set at June 30, 2027. It follows CRISIL-IBX AAA NBFC-HFC Index – June 2027 as the benchmark.
The scheme intends to invest 95-100% of its corpus in fixed income securities of the benchmark index. The balance will be allocated to debt and money market instruments to ensure liquidity.
The scheme follows a “buy-and-hold” strategy as the fund is passively managed. Debt instruments in the portfolio are expected to remain until maturity unless rebalancing or redemption needs arise. This approach makes sure to reduce bias in security selection and cost efficiency for investors.
The fund lets investors plan their investments in a flexible way. They can use options like regular investments or withdrawals to match their financial goals.
Why Choose this Fund?
The CRISIL-IBX AAA NBFC-HFC Index offers a return of around 7.70% to 7.75%. The fund mainly invests in safe, high-quality AAA-rated bonds, making it a simple and low-cost option for investors who want steady and reliable returns with low risk.
This fund also benefits from the growth of India’s NBFC and HFC sectors by investing in a variety of top-quality debt securities. With the tracking of the benchmark index, the fund ensures transparency and closely mirrors the performance of the market.
Suitable for any investor looking for a very low-risk, fixed-income investment, the Axis CRISIL-IBX AAA Bond NBFC-HFC June 2027 Index Fund is a structured investment for long-term financial planning but at a cost-effective pricing.
This launch improves another strategic product in the Axis Mutual Fund suite, affording investors the opportunity to seek benefits from the stability that India’s AAA-rated bond market provides.
