Axis Mutual Fund Launches Axis US Treasury Dynamic Bond ETF Fund of Fund

(An open-ended fund of fund investing in ETFs wherein the underlying investments comprise of US treasury securities across duration)

Highlights:

• Category: An open-ended fund of fund investing in ETFs wherein the underlying investments comprise of US treasury securities across duration


• Benchmark: Bloomberg US Intermediate Treasury TRI


• Fund Manager: Vinayak Jayanath


• NFO open date: 12^st December 2023


• NFO close date: 19^th December 2023


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


• Exit Load:


• If redeemed/switched-out within 1 month from the date of allotment: 0.25%


• If redeemed/switched-out after 1 month from the date of allotment: Nil

Mumbai, December 08, 2023: Axis Mutual Fund, one among the fastest growing fund houses in India announces the launch of its latest fund offering, the 'Axis US Treasury Dynamic Bond ETF Fund of Fund'. Benchmarked against the Bloomberg US Intermediate Treasury TRI, the primary investment objective of the scheme is to provide regular income by investing in units of overseas ETFs where the investment mandate is to invest in US treasury securities across duration. However, there can be no assurance that the investment objective of the Scheme will be achieved. The fund will be managed by Mr. Vinayak Jayanath.

B. Gop Kumar, MD & CEO of Axis AMC, stated, “The global economic landscape is evolving rapidly, and US Treasuries present a compelling investment avenue in this context. They have been at historic highs recently due to significant expansion of the US Fed balance sheet and an easy monetary policy stance for the last 2.5 years. Furthermore, the current market conditions warrant allocation to duration assets. In such an environment, the Axis US Treasury Dynamic Bond ETF Fund of Fund has been conceptualized with the aim to enable investors to leverage global opportunities.”

Key features of the Axis US Treasury Dynamic Bond ETF Fund of Fund

The scheme will aim to allocate 95-100% of its instruments in units of overseas ETFs wherein the underlying investments comprise of US treasury securities (residual maturity of the underlying securities in which investments shall be made shall not exceed 15 years) and the remaining 0-5% in debt and money market instruments. The indicative list* of overseas Exchange Traded Funds in which the Scheme proposes to invest is as follows:

• iShares Short Treasury Bond ETF


• iShares 1-3 Year Treasury Bond ETF


• SPDR^® Bloomberg 1-10 TIPS ETF


• iShares 7-10 Year Treasury Bond ETF

The scheme will predominantly follow an active investment strategy for investments in the overseas mutual funds. The fund is designed to dynamically adjust to market fluctuations, aiming to capitalize on the expected yields and minimize risks. This fund has the potential to be an ideal addition for those looking to diversify their portfolio for international exposure. This dynamic management approach allows the fund to adapt to changing macroeconomic conditions, targeting both capital appreciation and income generation opportunities.

Ashish Gupta, CIO, Axis Mutual Fund, added, "Dynamic allocation is pivotal in today's ever-changing economic landscape, and the Axis US Treasury Dynamic Bond ETF Fund of Fund embodies this principle. As market cycles vary, the need to pivot allocations becomes essential. Our fund is strategically designed to respond to these fluctuations, aiming to maximize the risk-return profile for our investors by actively managing strategies across different segments of the US G-Sec yield curve."

In a world of shifting market dynamics, the Axis US Treasury Dynamic Bond ETF Fund of Fund offers a forward-looking investment solution. With its strategic focus on dynamic allocation and global market insights, the fund positions itself as an essential component for investors seeking to diversify and strengthen their portfolios in the face of global economic shifts.

This new fund offer (NFO) is set to open for subscription on December 12, 2023, and will remain open until December 19, 2023.

*The list of overseas Exchange Traded Funds provided is indicative and the Scheme can invest in any other overseas Exchange Traded Fund which shall have similar investment objective, investment strategy and benchmark.

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

Sources: Axis MF Research

Product Labelling and Riskometer: Axis US Treasury Dynamic Bond ETF Fund of Fund (An open-ended fund of fund investing in ETFs wherein the underlying investments comprise of US treasury securities across duration)

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).

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.