Publish Date:
Axis Fund has launched an open-ended equity index scheme - Axis Nifty 50 Index Fund.
The scheme will be replicating/tracking Nifty 50 Index.
The investment objective of Axis Nifty 50 Index Fund is to provide returns before expenses that closely corresponds to the total returns of the NIFTY 50 subject to tracking errors. However, there can be no assurance that the investment objective of the Scheme will be achieved.
Axis Nifty 50 Index Fund is mandated to invest 95% to 100% of its total assets in Equity & Equity related instruments covered by the Nifty 50 index. The scheme may also hold 0% to 5% of its assets in Debt and Money Market Instruments.
As per the Scheme Information Document, Axis Nifty 50 Index Fund would invest in stocks comprising the underlying Nifty 50 index and shall endeavor to track the benchmark index. The Scheme may also invest in debt and money market instruments, in compliance with Regulations to meet liquidity and expense requirements.
The Scheme endeavors to invest in stocks forming part of the underlying in the same ratio as per the index to the extent possible and to that extent follows a passive investment strategy, except to the extent of meeting liquidity and expense requirements.
Events like the constituent stocks becoming illiquid in cash market, the exchange changing the constituents, a large dividend going ex but lag in its receipts, etc tend to increase the tracking error. In such events, it may be more prudent for the Scheme to take exposure through derivatives of the index itself or its constituent stocks in order to minimize the long term tracking error.
The Scheme is an open-ended scheme. It is expected that there would be a number of subscriptions and redemptions on a daily basis. Consequently, it is difficult to estimate with any reasonable measure of accuracy, the likely turnover in the portfolio.
Axis Nifty 50 Index Fund’s performance will be benchmarked against Nifty 50 Index (Total Return Index).
The fund will be managed by Mr Jinesh Gopani.
The NFO opens for subscription on November 15, 2021, and closes on November 29, 2021. The scheme will reopen for continuous sale and repurchase within five Business Days from the date of allotment.
The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.
The fund offers Regular Plan and Direct Plan having Growth Option and Income Distribution cum capital withdrawal (IDCW) Option (Payout and Reinvestment).