Publish Date:
Axis Mutual Fund introduces – Axis Nifty IT Index Fund
It is an open-ended scheme replicating/ tracking Nifty IT Index.
Accordingly, the investment objective of the scheme is to provide returns before expenses that corresponds to the total returns of the Nifty IT TRI subject to tracking errors. However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved.
Under normal circumstances, Axis Nifty IT Index Fund will hold an allocation of 95% to 100% of its assets in Securities covered by Nifty IT TRI, the Underlying Index and 0% to 5% in Debt & Money Market Instruments.
As per the Scheme Information Document, Axis Nifty IT Index Fund would invest in stocks comprising the underlying index to track the benchmark index. The Scheme shall invest in stocks forming part of the underlying index in the same ratio as per the index, 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.
Axis Nifty IT Index Fund’s performance will be benchmarked against Nifty IT TRI.
The scheme will be managed by Mr Hitesh Das.
The NFO opens for subscription on June 27, 2023 and closes on July 11, 2023. The schemes will reopen for continuous sale and repurchase within 5 business days from the date of allotment.
The fund's face value is Rs 10/- per unit. The units will be issued at premium equivalent to the difference between allotment price and the face value of Rs 10/-. The minimum subscription amount is Rs 5,000/- and in multiples of Re. 1/- thereof.
The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.