Axis MF launches Axis Nifty SDL September 2026 Debt Index Fund

Mutual Fund
Nov 4, 2022 by Axis Mutual Fund | Mutual Fund | 0 Downloaded

(An open ended target maturity index fund investing in constituents of Nifty SDL Sep2026 Index; A relatively high interest rate risk and relatively low credit risk)

Fund Snapshot: -

  • An open-ended Target Maturity Index Fund investing in constituents of Nifty SDL Sep 2026 Index; A Relatively High Interest Rate Risk and Relatively Low Credit Risk

  • Benchmark: Nifty SDL Sep 2026 Index

  • Benchmark Expected Maturity Date: 30th September, 2026

  • Number of Issuers: 15 SDL Issuers

  • NFO Date: November 04, 2022 to November 16, 2022

  • Minimum Investment: Rs. 5,000 and in multiples of Rs.1/- thereafter

  • Fund Manager: Aditya Pagaria

  • Exit Load: Nil

Mumbai, November 04, 2022: Axis Mutual Fund, one among the fastest growing fund houses in India, announced the launch of their new fund offer – Axis Nifty SDL September 2026 Debt Index Fund. It is an open-ended target maturity index fund investing in constituents of Nifty SDL Sep 2026 Index; a relatively high interest rate risk and relatively low credit risk. The new fund will track the Nifty SDL Sep 2026 Index. The investment objective of the scheme is to provide investment returns corresponding to the total returns of the securities as represented by the Nifty SDL Sep 2026 Index before expenses, subject to tracking errors. However, there can be no assurance that the investment objective of the Scheme will be achieved. With Aditya Pagaria helming the fund, the minimum investment amount would be Rs. 5,000 and in multiples of Rs. 1/- thereafter.

Target maturity funds allow investors to access specific maturity buckets. The transparent nature of such a strategy provides investors a clear picture of the portfolio and the instrument mix. As a passive fund, the product aims to replicate a designated index created by reputed index providers. The ‘held to maturity’ nature of target maturity strategies aims to minimize duration risk for investors who remain invested through the life of the fund.

The open ended nature of such a fund means that investors can use systematic investment and withdrawal facilities to tailor entry and exit in the fund to meet investor objectives. Further, these funds do not have lock-ins and hence provide liquidity to investors, should they wish to redeem mid-term without any hassles.

Why Consider Investing in SDLs (State Development Loans)

SDLs are state government securities issued to meet budgetary expenses and implement development projects. SDLs are one of the most liquid instruments traded in the Indian debt market. They typically trade at a premium to comparable government securities. The RBI has raised policy rates by ~190 bps between April ‘22 to September’22 to combat rising inflation. This has resulted in a sharp retracement across the shortend of the curve (1-3 Year segment) even as the long end of the curve remains anchored. Today, the flat yield curve offers opportunities for investors in the 3 to 5-year segment from a risk reward standpoint. Hence, the Axis Nifty SDL September 2026 Debt Index Fund offers an ideal investment opportunity for investors looking to lock inrates over the 3.5-year investment opportunity.

Axis Nifty SDL September 2026 Debt Index Fund

The Axis Nifty SDL September 2026 Debt Index Fund aims to follow a low friction investment strategy by tracking a pre-specified benchmark/index as closely as possible. It is ideal for investors looking to create a high quality passive debt portfolio with a relatively longer investment horizon. Managed by NSE Indices Limited, currently, the Nifty SDL Index Sep 2026 is a portfolio of State Development Loans (SDLs) maturing between April 01, 2026 to September 30, 2026. Rebalanced semi-annually, the index comprises of a highly liquid portfolio of SDLs issued by 15 states based on the following parameters:

  • Minimum issue size of Rs. 500 CR

  • Emphasis on liquidity – Index will be evaluated basis volume and frequency of trading in underlying securities

  • Weighted basis liquidity and size of issuance to ensure portfolio liquidity

Top features of the fund include:

  • Low Cost Passive Investment: A hassle free solution for investors looking for a low cost fixed income product

  • No Bias in Security Selection: As the fund is passively managed and invests in the constituents of Nifty SDL – Sep 2026 Index, there is no bias in security selection

  • Simple and Easy: Target maturity and high quality SDL portfolio with the benefit of indexation

Commenting on the launch of the NFO, Chandresh Nigam, MD & CEO, Axis AMC said, “We believe that the Axis Nifty SDL September 2026 Debt Index Fund will be a notable add-on to our offerings in the passive debt side. Investors can leverage the benefit of a consistent style (as index represents a defined set SDLs issued by state governments) and a relatively lower risk exposure (as the index fund offers a well-defined mix sovereign exposure by way of SDLs) in addition to lower expenses and market linked returns. As a fund house that believes in ‘responsible investing’, we are offering investors the opportunity to invest in quality assets”.

The new fund offers (NFO) opens for subscription from November 04, 2022 to November 16, 2022.

Source: Bloomberg, Axis MF Research

Product Labelling:

Axis Nifty SDL September 2026 Debt Index Fund

*Investors are advised to consult their financial advisers if in doubt about whether the product is 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 investments are made)

Axis Nifty SDL September 2026 Debt Index Fund is not a capital protection or guarantees returns scheme. Please refer to SID for detailed Investment Strategy and other scheme related features.

Potential Risk Class Matrix

About Axis AMC: Axis AMC is one of India`s fastest growing assets managers offering a comprehensive bouquet of asset management products across mutual funds, portfolio management services and alternative investments.

NSE Indices Disclaimer: The Axis Nifty SDL September 2026 Debt Index Fund (Products) are not sponsored, endorsed, sold or promoted by NSE INDICES LIMITED (formerly known as India Index Services & Products Limited ("IISL"). NSE INDICES LIMITED does not make any representation or warranty, express or implied, to the owners of the Axis Nifty SDL September 2026 Debt Index Fund or any member of the public regarding the advisability of investing in securities generally or in the Product(s) particularly or the ability of the Nifty SDL Sep 2026 Index to track general stock market performance in India. The relationship of NSE INDICES LIMITED to the Issuer is only in respect of the licensing of the Indices and certain trademarks and trade names associated with such Indices which is determined, composed and calculated by NSE INDICES LIMITED without regard to the Issuer or the Product(s). NSE INDICES LIMITED does not have any obligation to take the needs of the Issuer or the owners of the Product(s) into consideration in determining, composing or calculating the Nifty SDL Sep 2026 Index. NSE INDICES LIMITED is not responsible for or has participated in the determination of the timing of, prices at, or quantities of the Product(s) to be issued or in the determination or calculation of the equation by which the Product(s) is to be converted into cash. NSE INDICES LIMITED has no obligation or liability in connection with the administration, marketing or trading of the Product(s). NSE INDICES LIMITED do not guarantee the accuracy and/or the completeness of the Nifty SDL Sep 2026 Index or any data included therein and NSE INDICES LIMITED shall not have any responsibility or liability for any errors, omissions, or interruptions therein. NSE INDICES LIMITED does not make any warranty, express or implied, as to results to be obtained by the Issuer, owners of the product(s), or any other person or entity from the use of the Nifty SDL Sep 2026 Index or any data included therein. NSE INDICES LIMITED makes no express or implied warranties, and expressly disclaim all warranties of merchantability or fitness for a particular purpose or use with respect to the index or any data included therein. Without limiting any of the foregoing, NSE INDICES LIMITED expressly disclaim any and all liability for any claims, damages or losses arising out of or related to the Products, including any and all direct, special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages. An investor, by subscribing or purchasing an interest in the Product(s), will be regarded as having acknowledged, understood and accepted the disclaimer referred to in Clauses above and will be bound by it.

Disclaimer: This press release represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC). Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time.

The information set out above is included for general information purposes only and does not constitute legal or tax advice. In view of the individual nature of the tax consequences, each investor is advised to consult his or her own tax consultant with respect to specific tax implications arising out of their participation in the Scheme. Income Tax benefits to the mutual fund & to the unit holder is in accordance with the prevailing tax laws as certified by the mutual funds consultant. Any action taken by you on the basis of the information contained herein is your responsibility alone. Axis Mutual Fund will not be liable in any manner for the consequences of such action taken by you. The information contained herein is not intended as an offer or solicitation for the purchase and sales of any schemes of Axis Mutual Fund.

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(Mutual Fund investments are subject to market risks, read all scheme related documents carefully.)