Axis Mutual Fund Files Draft with SEBI for Axis Nifty 500 Index Fund

Axis Mutual Fund has recently filed a draft paper with SEBI for the launch of Axis Nifty 500 Index Fund. This is an open-ended index fund designed to track the Nifty 500 Total Returns Index (TRI). Let’s dive into the details of this new investment opportunity.

Overview of Axis Nifty 500 Index Fund

The Axis Nifty 500 Index Fund is structured to offer long-term wealth creation by investing in a diversified basket of Nifty 500 TRI stocks. The fund aims to replicate the performance of the Nifty 500 TRI, subject to tracking errors. This makes it suitable for investors looking for a broad market exposure through a single fund.

Investment Suitability

This product is suitable for investors seeking:

Long-term wealth creation: The fund is designed for investors with a long-term investment horizon.

Index fund returns: The fund aims to track the returns of the Nifty 500 TRI by investing in the index’s constituent stocks.

Benchmark

The benchmark for this fund is the Nifty 500 TRI.

Plans and Options

The Axis Nifty 500 Index Fund offers two plans:

1. Axis Nifty 500 Index Fund – Regular Plan
2. Axis Nifty 500 Index Fund – Direct Plan

Options Under Each Plan

Each plan offers a Growth option.

• Regular Plan

The Regular Plan is available for investors who purchase or subscribe to units through a distributor.

• Direct Plan

The Direct Plan is exclusively for investors who purchase or subscribe to units directly with the fund, without routing through a distributor.

Minimum Application Amount and Switch-In

During NFO

• Minimum Application Amount: Rs. 500 and in multiples of Re. 1 thereafter.

On Continuous Basis

• Minimum Application Amount: Rs. 500 and in multiples of Re. 1 thereafter.
• The minimum application amount applies at the time of creating a new folio and the first investment in a plan.
• Minimum Additional Purchase Amount
• Rs. 100 and in multiples of Re. 1 thereafter.

Asset Allocation

The scheme will allocate its assets as follows:

Fund Managers

The Axis Nifty 500 Index Fund will be managed by experienced fund managers Sachin Relekar and Karthik Kumar.

Conclusion

The Axis Nifty 500 Index Fund offers a comprehensive investment solution for those seeking to invest in a broad spectrum of the market. With its focus on the Nifty 500 TRI, the fund provides an opportunity for long-term wealth creation with a diversified approach. Whether you’re looking to invest through a distributor or directly, the fund offers flexibility with its Regular and Direct plans.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.