Axis Mutual Fund Launches Axis Nifty Bank Index Fund

(An Open-Ended Index Fund tracking the Nifty Bank TRI)

Key Highlights: -

• Category: Open-Ended Index Fund


• Benchmark: Nifty Bank TRI


• Fund Managers: Mr. Karthik Kumar, Mr. Ashish Naik


• NFO open date: 03^rd May 2024


• NFO close date: 17^th May 2024


• Minimum Investment: Rs. 500 and in multiples of Re. 1/- thereafter


• Exit Load:


• If redeemed/ switched out within 7 days from the date of allotment/ Investment – 0.25%


• If redeemed/ switched out after 7 days from the date of allotment/ Investment - Nil

Mumbai, May 02, 2024: In a significant move to tap into the dynamic growth of the Indian banking sector, Axis Mutual Fund is excited to announce the New Fund Offer (NFO) of the 'Axis Nifty Bank Index Fund'. This open-ended index fund aims to track the Nifty Bank TRI, providing investors with a mechanism to participate directly in the growth narrative of leading Indian banks.

"India's economic rise is a compelling narrative driven by several factors. If addressed effectively, our growth story has the potential to propel the nation towards becoming a major global economic power. Against this backdrop, India's banking sector continues to exhibit growth and resilience,” remarked B. Gopkumar, MD & CEO, Axis AMC. "Fuelled by robust regulatory frameworks and the rapid adoption of digital banking, the sector is well-positioned for sustained expansion. The Axis Nifty Bank Index Fund offers investors a strategic opportunity to tap into this growth opportunity. The sector benefits from strong emphasis on innovation and adherence to the highest governance standards, thereby capitalizing on the transformative trends reshaping India's banking landscape."

Managed by Mr. Karthik Kumar and Mr. Ashish Naik, the fund aims to provide returns before expenses that correspond to the total returns of the Nifty Bank TRI, subject to tracking errors. However, there is no assurance that the investment objective of the scheme will be achieved. The index comprises some of the largest and most liquid banking stocks in India, representing a crucial segment of the national economy.

"This fund is an interesting opportunity for investors to gain exposure to the banking sector, which is expected to play a pivotal role in India's economic expansion," explained Mr. Ashish Gupta, Chief Investment Officer at Axis AMC. "With increasing financial inclusion and a shift towards more sophisticated banking services, the sector can offer potential for significant returns".

The Axis Nifty Bank Index Fund

The Scheme would invest in stocks comprising the underlying index and shall track the benchmark index. The Scheme may also invest in debt and money market instruments, in compliance with Regulations to meet liquidity and expense requirements. The Scheme shall invest in stocks forming part of the underlying Index in the same ratio as per the index to the extent possible and to that extent follow a passive investment strategy, except to the extent of meeting liquidity and expense requirements. Essentially, the fund employs a passive investment strategy designed to mirror the performance & constituents of the Nifty Bank TRI. Further, the index undergoes rebalancing on semi-annual basis to ensure it reflects the current landscape of the sector by including the companies that best represent its performance.

The Axis Nifty Bank Index Fund can be a potentially attractive option for investors seeking to capitalize on the sector’s growth by including a diversified mix of Large-Cap and Mid-Cap banking companies (PSUs as well as Private Banks). “The Axis Nifty Bank Index Fund offers a cost-effective and efficient way to gain exposure to the Indian banking sector and we invite investors to seize this opportunity." concluded Mr. Gopkumar.

The NFO will open for subscriptions on May 3, 2024, and will close on May 17, 2024.

For detailed information on the investment strategy and to view the Scheme Information Document (SID)/Key Information Memorandum (KIM), please visit www.axismf.com.

Source: Axis MF Research as on 29^th April 2024

Product Labelling and Riskometer: Axis Nifty Bank Index Fund (an open ended index fund tracking the Nifty Bank TRI)

*Investors should consult their financial advisors if in doubt about whether the fund its 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 investment are made.)

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 (https://www.axismf.com/), portfolio management services and alternative investments (https://www.axisamc.com/homepage).

NSE Indices Limited Disclaimer:

The Axis Nifty Bank 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 BANK Index Fund or any member of the public regarding the advisability of investing in securities generally or in the Product(s) articularly or the ability of the Nifty Bank TRI 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 Bank TRI. 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 Bank TRI 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 Bank TRI 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).

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.

Stock(s) / Issuer(s)/ Top stocks, if any, mentioned above are for illustration purpose and should not be construed as recommendation.

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.