Axis AMC Launched India’s 1st NBFC Sector-based Target Maturity Mutual Fund Scheme

Current Context: Axis Mutual Fund has launched India’s first NBFC sector-based target maturity mutual fund scheme, named the AXIS CRISIL-IBX AAA NBFC INDEX – JUN 2027 Fund.

• This open-ended Target Maturity Index Fund is designed to invest in high-quality, AAA-rated Non-Banking Financial Companies (NBFCs) and aims to closely mirror the CRISIL-IBX AAA NBFC Index, maturing in June 2027.
• Here are some key details about the fund:
• Objective: To deliver investment returns that closely track the CRISIL-IBX AAA NBFC Index – June 2027.
• Investment Strategy: The fund employs a “Buy and Hold” strategy, holding NBFC debt instruments until maturity, except for redemptions or rebalancing.
• Risk Profile: It offers moderate interest rate risk and relatively low credit risk.
• Minimum Investment: ₹5,000, with additional investments in multiples of ₹1.
• No Exit Load: Investors can enter and exit flexibly through systematic investment and withdrawal plans.
• This fund is a good option for those looking for a predictable and safe debt product with a high-quality portfolio. The New Fund Offer (NFO) is open until September 23, 2024.

Question:

1 What is the minimum investment amount required for the AXIS CRISIL-IBX AAA NBFC INDEX – JUN 2027 Fund?

• A) ₹1,000
• B) ₹5,000
• C) ₹10,000
• D) ₹50,000

Answer: B) The minimum investment amount required for the fund is ₹5,000, with additional investments in multiples of ₹1.