Axis Mutual Fund launches CPSE Plus SDL 2025 70:30 Debt Index Fund

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NEW DELHI: Asset management company Axis Mutual Fund has announced the launch of Axis CPSE Plus SDL 2025 70:30 Debt Index Fund, a target maturity scheme whose benchmark maturity date is 30 April 2025. The new fund offer (NFO), which opened today, will remain open for subscription till 20 January.

The scheme will track the Crisil IBX 70:30 CPSE Plus SDL – April 2025 benchmark and the portfolio is designed to invest predominantly in AAA-rated central public sector undertakings (CPSEs) and SOV-rated State Development Loans (SDL) securities.

The scheme seeks to provide returns that closely correspond to the total returns of the securities as represented by the underlying index. The Crisil IBX 70:30 CPSE Plus SDL – April 2025 index contains two components as on the base date of the index that are rebalanced every quarter.

AAA-rated CPSE’s component (70%): Top seven CPSE issuers shall be selected, at the time of inception of the index, based on liquidity score of the securities maturing in the eligible period for CPSE.

SDL component (30%): Top six SDLs with a minimum O/s of 1,000 crore selected basis liquidity.

On the launch, Chandresh Nigam, managing director and chief executive officer, Axis AMC, said, “The launch of Axis CPSE Plus SDL 2025 70:30 Debt Index Fund aligns with our endeavour to strengthen our passive product suite over time. By offering investors an attractive debt strategy within the passive space, we want to introduce robust products that are relevant in the current context.”

The minimum investment in the fund during the NFO period would be 5,000 and in the multiples of Re 1, thereafter. The fund managers to the scheme would be Devang Shah and Kaustubh Sule.

As per the fund house, target maturity index funds are an ideal solution for investors with a set investment horizon. “By aiming to negate any duration risk for investors who remain invested through the life of the fund, they are best suited for building core fixed income portfolios,” the fund house added.

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