Axis Mutual Fund, one of the fastest growing fund houses in India, announced the launch of their new fund offer - 'Axis CPSE Plus SDL 2025 70:30 Debt Index Fund'. It is a target maturity Index Fund whose benchmark maturity date is April 30, 2025. The new fund will track the CRISIL IBX 70:30 CPSE Plus SDL - April 2025 benchmark and the portfolio is specifically designed to invest predominantly in AAA rated Central Public Sector Undertakings and SOV-rated SDL securities.
The scheme seeks to provide returns that closely correspond to the total returns of the securities as represented by the underlying index. The CRISIL IBX 70:30 CPSE Plus SDL - April 2025 index contains 2 components as on the base date of index that are rebalanced every quarter
- AAA rated CPSE's component (70%): Top 7 CPSE issuers shall be selected, at the time of inception of the index, based on liquidity score of the securities maturing in the eligible period for CPSE
- SDL component (30%): Top 6 SDLs with a minimum O/s of INR 1,000 Cr selected basis liquidity
The launch will facilitate passive investing for debt investors by offering them a fund that has defined tenure of close to three years, allowing them to take advantage of low duration strategies. Target maturity index funds are an ideal solution for investors with a set investment horizon. By aiming to negate any duration risk for investors who remain invested through the life of the fund, they are best suited for building core fixed income portfolios. This launch is another step towards building this segment into an attractive proposition for a broad range of investors.
On the launch of the NFO, Chandresh Nigam, MD & CEO, Axis AMC said, "As a fund house that is deeply entrenched in its philosophy of 'responsible investing' in quality assets, we aim at facilitating well-rounded solutions for investors. The launch of Axis CPSE Plus SDL 2025 70:30 Debt Index Fund' aligns with our endeavor to strengthen our passive product suite over time. By offering investors an attractive debt strategy within the passive space, we want to introduce robust products that are relevant in the current context."
Top features of the fund include:
- The Opportunity: The three-year space has seen yields rise by over 100 bps
- Core Allocation: Ideal solution for investors looking to invest with a three-year investment horizon
- Portfolio mechanics: Low cost hassle-free solution for investors looking to build their core fixed income portfolio
- Simple and Easy: Target maturity and high quality portfolio coupled with the benefit of indexation
The new fund offers (NFO) opens for subscription from January 10 to January 20, 2022.