Publish Date:
Axis Mutual Fund launches – Axis US treasury Dynamic Bond ETF Fund of Fund
It is an open-ended fund of fund investing in ETFs wherein the underlying investments comprise of US treasury securities across duration
Accordingly, the investment objective of the Scheme is to provide regular income by investing in units of overseas ETFs where the investment mandate is to invest in US treasury securities across duration. However, there can be no assurance that the investment objective of the Scheme will be achieved.
[Read: Are Developed Market Funds Offering Worthwhile Opportunities to Indian Investors?]
Under normal circumstances, Axis US treasury Dynamic Bond ETF Fund of Fund will hold an allocation of 95% to 100% in Units of overseas ETFs wherein the underlying investments comprise of US treasury securities and 0% to 5% in Debt and Money market instruments.
As per the Scheme Information Document, Axis US treasury Dynamic Bond ETF Fund of Fund provide regular income by investing in units of ETFs wherein the underlying investment comprises of US treasury securities across duration.
The fund of fund will seek to invest in one or a combination of ETFs where the investment mandate of the underlying fund will be to deploy primarily in securities issued by the US government with a residual maturity cap of up to 15 years.
The selection of a fund or a combination of funds will be made with the intent to efficiently manage risks associated with such investments and the available market opportunities. The fund manager may actively deploy across multiple funds to achieve the intended duration profile basis his/her market view.
Axis US treasury Dynamic Bond ETF Fund of Fund’s performance will be benchmarked against Bloomberg US Intermediate Treasury TRI
The scheme will be managed by Mr Vinayak Jayanath (for foreign securities)
The NFO opens for subscription on December 12, 2023 and closes on December 19, 2023. The schemes will reopen for continuous sale and repurchase Within five business days of allotment date.
The minimum subscription amount is Rs 500/- and in multiples of Re.1/- thereof.
The scheme offers Regular Plan and Direct Plan each plan offers Growth option and Income Distribution cum capital withdrawal Option (IDCW).