Mutual Fund News : Axis Mutual Fund Introduces Axis Consumption ETF

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Axis Mutual Fund has launched a new scheme - Axis Consumption ETF.

It is an open-ended Exchange Traded Fund that will track the Nifty India Consumption Index.

Accordingly, the investment objective of the scheme is to provide returns before expenses that closely correspond to the total returns of the NIFTY India Consumption Index subject to tracking errors. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.

Under normal circumstances the scheme will invest 95% to 100% of its assets in Equity instruments covered by Nifty India Consumption Index, with upto 5% in Equity Derivatives. A very small portion (0% to 5% of its assets) may be kept in Debt & Money Market Instruments.

Accordingly, Axis Consumption ETF would invest in Equity & Equity related instruments forming part of the constituents of the underlying index. The Scheme will endeavor to track the Nifty India Consumption Index and is a passively managed scheme.

In case of any change in the index due to corporate actions or change in the constituents of Nifty India Consumption Index (as communicated by IISL), the relevant investment decision will be determined considering composition of Nifty India Consumption Index.

The Scheme will also invest in Debt Instruments & Money Market Instruments.

As per the scheme information document, Axis Consumption ETF 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.

Axis Consumption ETF’s performance will be benchmarked against Nifty India Consumption TRI (Total Return Index).

Axis Consumption ETF will be managed by Mr Viresh Joshi and Mr Deepak Agarwal.

The NFO opens for subscription on August 30, 2021, and closes on September 13, 2021. The scheme will reopen for continuous sale and repurchase within 5 Business Days from the date of allotment.

The fund’s NAV is priced at Rs 10 per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

The Units of the Scheme will be listed on National Stock Exchange of India Ltd. (NSE) and/or any other recognized stock exchanges as may be decided by AMC from time to time. The Units of the scheme may be bought or sold on all trading days at prevailing listed price on such Stock Exchange(s).