Axis Mutual Fund Brings Axis S&P 500 ETF Fund of Fund, NFO Opens Today

Axis Mutual Fund on Wednesday introduced the launch of their New Fund Offer – Axis S&P 500 ETF Fund of Fund. It an open ended fund of fund investing in Exchange Traded Funds replicating S&P 500 TRI, topic to monitoring errors.

The new fund will adhere to the S&P 500 TRI (INR) benchmark, the fund home mentioned.

Vinayak Jayanath can be managing the fund and the minimal funding quantity is Rs. 500 and in multiples of Re. 1 thereafter.

The NFO has opened for subscription from March 22, 2023 to April 05, 2023.

A brand new fund provide (NFO) is the preliminary provide of a brand new mutual fund scheme to the general public. It is the primary time {that a} mutual fund firm presents a brand new scheme to traders for subscription. During an NFO, traders can subscribe to the models of the mutual fund.

Axis S&P 500 ETF Fund of Fund

The Axis S&P 500 ETF Fund of Fund endeavours to speculate at the least 95% of the online property in models/shares of abroad Exchange Traded Funds replicating S&P 500 TRI, topic to the supply of Eligible Investment Amount and the remaining in Debt and Money Market investments. The indicative checklist of abroad Exchange Traded Funds through which the Scheme proposes to speculate is as follows;

-iShares Core S&P 500 UCITS ETF

-HSBC S&P 500 UCITS ETF

-SPDR S&P 500 UCITS ETF

Understanding a Fund of Fund

Unlike an everyday mutual fund that invests in distinct asset lessons, a Fund of Fund invests in schemes of its personal or different fund homes. In the case of worldwide Fund of Funds, the fund supervisor invests in models of offshore mutual fund schemes by making certain that the goal fund’s funding philosophy and danger profile matches with that of the fund’s mandate.

Some Key Attributes of the Fund Highlighted By Axis AMC:

• Global Exposure: Since the S&P 500 index tracks the efficiency of 500 giant corporations listed on the US inventory change, traders can acquire international publicity. Furthermore, the index evolves because the US markets evolves with altering sectoral dynamics
• Sector Agnostic Representation: The Index doubtlessly goals to supply broad primarily based publicity throughout all sectors
• Low Cost Passive Exposure: Avenue to take low value publicity in US market and in addition doubtlessly profit from INR depreciation

Chandresh Nigam, MD and CEO, Axis AMC mentioned, “ETFs are quickly turning into well-liked amongst the varied automobiles of investing in passive methods in India. In India, Fund of Funds will be thought-about as an fascinating entry level for traders with an extended funding horizon and who want to diversify their portfolio from a world standpoint. With the launch of the Axis S&P 500 ETF Fund of Fund, we’re seamlessly enabling international publicity by way of passive methods. The new scheme’s strategy aligns with our philosophy of ‘Responsible Investing’ and we consider, will likely be a notable addition to our portfolio of merchandise.”