NFO Analysis: Axis CRISIL SDL 2027 Debt Index Fund

Axis Mutual Fund is launching the CRISIL SDL 2027 Debt Index Fund.

Axis Mutual Fund offers various types of schemes such as equity-oriented, debt-oriented, hybrid, ETFs, international funds and solution-oriented schemes i.e., in total, the fund offers 54 different schemes. The quarterly average assets under management of the Axis Mutual Fund are Rs 2,53,450.20 crore as of December 2021, which is launching the CRISIL SDL 2027 Debt Index Fund. This is an open-ended scheme that seeks to track the CRISIL IBX SDL Index – May 2027. 

Subscription Dates: The NFO was launched on February 7, 2022, and will close on February 21, 2022. 

Objective of the scheme: The scheme seeks to provide investment returns closely resembling the total returns of the securities as represented by the CRISIL IBX SDL Index – May 2027 before expenses, subject to tracking errors.  

Investment Strategy: AXIS CRISIL SDL 2027 DEBT INDEX FUND Maturity is a passively managed index fund that will utilize an investment approach designed to track the performance of the CRISIL IBX SDL Index – May 2027. The scheme will follow the Buy and Hold investment strategy in which it will invest in state government securities, which will be held till maturity unless sold for meeting redemptions/rebalancing. The scheme will imitate the index completely and if not able to imitate the index the Fund Manager may invest in other issuances within the limits specified and subject to conditions laid down by the SEBI circular dated November 29, 2019, as amended from time to time. 

Asset Allocation: 

Benchmark: CRISIL IBX SDL Index – May 2027 

Fund Manager: Kaustubh Sule and Hardik Shah 

This fund will be suitable for investors with high-risk appetites as the fund manager of this scheme will allocate the capital towards debt instruments comprising in CRISIL IBX SDL Index – May 2027. Investors who are willing to diversify their portfolios and wants exposure to CRISIL IBX SDL Index can consider investing in this fund. As this is a new theme that the fund is offering, an investor possessing a high-risk appetite can go for it, however, it’s better to invest in schemes that already have historical data.