NFO: Axis AAA Bond Plus SDL ETF

By Morningstar |  22-04-21 | 
 

Axis Mutual Fund has launched Axis AAA Bond Plus SDL ETF 2026 Maturity Fund. It is a target maturity ETF – a portfolio designed to terminate at a pre-defined date – that will invest in a portfolio of high-quality debt instruments.

The benchmark index has a maturity date of April 30, 2026. Further, the composition of the benchmark is an equal allocation towards AAA securities and SDLs, thus offering investors high credit quality and a diversified portfolio.

"The fund can be used by investors looking at a 5 year holding period but also by investors that want to take advantage of this strategy for shorter holding periods," said the release.

An ETF is a mutual fund designed to track the performance of an index. This is achieved by closely replicating the portfolio of the underlying index. ETFs trade in bite-sized units on an exchange at market-determined prices. While traditionally in India it is the equity and gold ETFs that have been popular, debt ETFs are fast making a space for themselves.

The new fund offers (NFO) opens for subscription from April 23, 2021 and closes on May 7, 2021.

Features:

  • An open-ended Target Maturity Exchange Traded Fund investing predominantly in constituents of Nifty AAA Bond Plus SDL Apr 2026 50:50 Index
  • A target maturity ETF invests in a portfolio that is designed to terminate at a pre-defined date
  • Benchmark has an equal allocation to AAA rated bonds and SDLs
  • Benchmark index has a maturity date of April 30, 2026
  • Minimum Investment: Rs 5,000
  • Benchmark: Nifty AAA Bond Plus SDL Apr 2026 50:50 Index
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