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

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New Delhi: Axis Mutual Fund, one of the fastest growing fund houses in India, announced the launch of their new fund offer – ‘Axis CPSE Plus SDL 2025 70:30 Debt Index Fund’.

It is a target maturity Index Fund whose benchmark maturity date is Apr 30, 2025.

The new fund will track the CRISIL IBX 70:30 CPSE Plus SDL – April 2025 benchmark and the portfolio is specifically designed to invest predominantly in AAA rated Central Public Sector Undertakings and SOV-rated 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 2 components as on the base date of index that are rebalanced every quarter.

The launch will facilitate passive investing for debt investors by offering them a fund that has defined tenure of close to three years, allowing them to take advantage of low duration strategies. 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. This launch is another step towards building this segment into an attractive proposition for a broad range of investors.

On the launch of the NFO, Chandresh Nigam, MD & CEO, Axis AMC said, “As a fund house that is deeply entrenched in its philosophy of ‘responsible investing’ in quality assets, we aim at facilitating well-rounded solutions for investors. The launch of Axis CPSE Plus SDL 2025 70:30 Debt Index Fund’ aligns with our endeavor 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.”