Axis Mutual Fund launches CRISIL SDL 2027 Debt Index Fund

The New Fund Offer (NFO) will open for subscription on February 7 and close on February 21. The new scheme will track CRISIL IBX SDL Index – May 2027 and the portfolio is primarily designed to invest in a portfolio of State Development Loans (SDLs) maturing between 1 December 2026 and 31 May 2027, according to the asset management company has gone.

The index will be managed by CRISIL Index Ltd.

As per the fund house, the target maturity structure of Axis CRISIL SDL 2027 Debt Index Fund helps in better allocation, creation of high quality passive portfolio and efficient taxation.

“It is ideal for investors looking for a relatively long investment horizon, providing exposure to a diversified portfolio commensurate with the maturity of the index. The scheme seeks to provide market-linked returns as represented by the underlying index. The fund house said in a release.

CRISIL IBX SDL Index will be rebalanced quarterly and will include SDLs issued by 12 states based on minimum issue size. 1,000 crore, with emphasis on liquidity and issuance size.

SDL is a state government loan which is issued to meet budgetary expenditure and implement development projects. SDL is one of the most liquid instruments that trade above the G-Sec curve and can be held for longer periods. RBI manages this trading.

Commenting on the launch, Chandresh Nigam, MD & CEO, Axis AMC said, “The launch of Axis CRISIL SDL 2027 Debt Index Fund is another step towards making the passive investment segment into an attractive proposition for a wide range of investors. Is.”

Target Maturity Funds have started gaining importance as they allow investors to take advantage of duration strategies due to their defined tenure.

The fund manager achieves this by buying securities of similar maturity close to the defined maturity date and holding them till maturity. The objective of the strategy is to negate any term risk for investors who remain invested during the life of the fund.

The minimum investment in the scheme is 5,000 and thereafter in multiples of Rs. The scheme will have zero exit load and will be managed by Hardik Shah and Kaustubh Sule.