NFO Alert: Axis Mutual Fund launches Axis S&P BSE Sensex Index Fund; all you need to know

Axis Mutual Fund announced the launch of the Axis S&P BSE Sensex Index Fund, an open-ended index fund tracking the S&P BSE Sensex TRI. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved.

The scheme will open for public subscription on February 08, 2024, and will close on February 22, 2024. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.

What kind of mutual fund scheme is this?

This is an open-ended index fund tracking the S&P BSE Sensex TRI. This product is suitable for investors seeking

• Long-term wealth creation solution
• An index fund that seeks to track returns by investing in a basket of S &P BSE Sensex TRI stocks and aims to achieve returns of the stated index, subject to tracking error.

What is the main objective of investing in this fund?

The investment objective of the scheme is to provide returns before expenses that correspond 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.

How may one invest in this scheme?

The minimum application for the issue is ₹500.

Under normal circumstances, the asset allocation of the scheme will be as follows:

Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such Sensex index fund schemes, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:

How will the scheme benchmark its performance?

The performance of the scheme will be benchmarked against the S&P BSE Sensex TRI. The scheme aims to provide returns before expenses that closely correspond to the total returns of the S&P BSE Sensex TRI subject to tracking errors. Hence the benchmark. 

Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would also be “Nil”.

Who will manage this scheme?

Karthik Kumar and Ashish Naik are the designated fund managers of this scheme.

Does the fund contain any inherent risk?

The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.