Axis Mutual Fund launches ‘Axis S&P BSE Sensex Index Fund’

(An Open-Ended Index Fund tracking the S&P BSE Sensex TRI)

Highlights:

• Category: An open-ended index fund tracking the S&P BSE Sensex TRI

• Benchmark: S&P BSE Sensex TRI

• Category: Index Fund

• Fund Manager: Mr. Karthik Kumar and Mr. Ashish Naik

• NFO open date: 08th Feb 2024

• NFO close date: 22nd Feb 2024

• Minimum Investment: Rs. 500 and in multiples of Re. 1/- thereafter

• Exit Load: Nil

Bengaluru | Feb 06, 2024: Axis Mutual Fund, one among the fastest growing fund houses in India, is pleased to announce the launch of its New Fund Offer – Axis S&P BSE Sensex Index Fund (an open-ended index fund tracking the S&P BSE Sensex TRI). The fund will be managed by Mr. Karthik Kumar (Fund Manager) and Mr. Ashish Naik (Fund Manager). The new fund will track the S&P BSE Sensex TRI benchmark. The minimum investment amount is Rs. 500 and in multiples of Re.1/- thereafter.

A representation of the large cap companies in India, the S&P BSE Sensex Index is a free float market-weighted stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange. Considering the wide spectrum of sectors the index covers, it offers investors a diversified portfolio and an opportunity to participate in the growth story of various sectors with a single index.

Mr. B. Gopkumar, MD & CEO, Axis AMC said, “With the increasing acceptance of passive investing strategies, we recognize the need to provide an investment option that aligns with the evolving preferences of today’s investors. The launch of the Axis S&P BSE Sensex Index Fund demonstrates our commitment towards providing an extensive bouquet of products, offering diversified investment solutions. In last two decades, equity investors have showcased resilience, and we believe that the Axis S&P BSE Sensex Index Fund has the potential to create long-term wealth opportunities for investors. The fund also aims to offer a cost-effective solution to participate in the market’s growth narrative.”

Axis S&P BSE Sensex Index Fund

The investment objective of the Axis S&P BSE Sensex Index Fund is to provide returns before expenses that corresponds to the total returns of the S & P BSE Sensex TRI subject to tracking errors. However, there is no assurance that the investment objective of the scheme will be achieved. The Scheme endeavours to invest in stocks forming part of the underlying index in the same ratio as per the index to the extent possible. Essentially, 95% to 100% of the investments will be made in securities covered by S&P BSE Sensex TRI and for the remaining, the fund has the flexibility to invest in Debt and Money Market investments. To that extent follows a passive investment strategy, except to the extent of meeting liquidity and expense requirements. (Please refer to SID for detailed Asset Allocation & Investment Strategy and other scheme related features available at www.axismf.com).

Ashish Gupta, Chief Investment Officer, Axis AMC asserts, “India’s market capitalization crossed the $4 trn mark in December 2023 and India is now the fourth largest by market cap. As India continues to record a strong GDP growth with multiple positive drivers in place to sustain it, we wanted to create an opportunity for investors that would allow them to participate in this growth story. With the launch of the Axis S&P BSE Sensex Index Fund, we are aiming to create a low friction investment strategy that relies on broader market wisdom to yield wealth creation opportunities for investors.”

The scheme aims to invest and maintain domestic equity exposure greater than 95% of net assets at all times. Accordingly, the resulting tax treatment will be that of equity mutual funds. Given the mutual fund structure, investors can look to invest through various systematic options like SIPs, STP’s & lumpsum investments. Investments through SIPs can offer an efficient and convenient way for investors to participate in the growth of the overall market, encouraging regular and disciplined investing, regardless of market conditions.

Some Key Attributes of the Fund include:

Lower Expenses – A hassle free solution for investors looking for a low-cost equity product as index funds have relatively lower expenses than actively managed funds.
Consistent Style – The fund invests in the underlying index, thereby eliminating fund manager bias while purchasing/selling securities. Furthermore, the index represents 30 companies selected from the universe of S&P BSE Sensex based on free-float market capitalization.
Market Linked Returns – S&P BSE Sensex is the de-facto barometer of the Indian equity markets. Therefore, an index fund is an ideal strategy for investors looking for market linked equity returns. Further, the passively managed fund endeavours for minimal tracking error as it aims to replicate the benchmark.

The NFO opens on 8th Feb 2024 and closes on 22nd Feb 2024.

For detailed information on the investment strategy and to view the Scheme Information Document (SID)/Key Information Memorandum (KIM), please visit www.axismf.com.

Sources: Axis MF Research as on 24th Jan 2024.

Product Labelling and Riskometer:

AXIS S&P BSE SENSEX INDEX FUND (An Open-Ended Index Fund tracking the S&P BSE Sensex TRI)

A diagram of a diagram

Description automatically generated with medium confidence

*Investors should consult their financial advisors if in doubt about whether the fund its suitable for them

(The product labelling assigned during the New Fund Offer is based on internal assessment of the Scheme Characteristics or model portfolio and the same may vary post NFO when actual investment are made.)