Axis Mutual Fund to launch debt ETF on April 23

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Axis Mutual Fund will launch a new exchange traded fund – ‘Axis AAA Bond Plus SDL ETF 2026 Maturity’– with the new fund offer set to open for subscription on Friday. It will close on May 7.

The target maturity ETF will invest in a portfolio of high quality debt instruments. The benchmark index has a maturity date of April 30, 2026.

The benchmark will have an equal allocation towards AAA-rated securities and SDLs, thus offering investors with a high credit quality and diversified portfolio.

The launch will facilitate passive investing for debt investors by offering them a fund that has defined tenure of close to 5 years.

An ETF is a mutual fund designed to track the performance of an index. This is achieved by closely replicating the portfolio of the underlying index. ETFs trade in bite sized units on an exchange at market-determined prices. Debt ETFs offer investors a great combination of stability and liquidity.

Passive Product Suite

Chandresh Kumar Nigam, Managing Director, Axis AMC said the fund house wants to offer investors a choice of strategies including robust passive products across all asset classes.

The launch of the ETF takes forward the fund house’s endeavour to build up its passive product suite over time by offering investors an attractive debt strategy within the passive space, he added.

The 5-year AAA space is offering an interesting opportunity given the sell-off since last December, said the fund house.