Axis Mutual Fund has announced the launch of Axis Nifty Bank Index Fund, an open-ended index fund tracking the Nifty Bank TRI.
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, the fund house said in a release.
The new fund offer or NFO will open for subscription on May 3 and close on May 17.
The scheme will be benchmarked against Nifty Bank TRI. It will be managed by Karthik Kumar and Ashish Naik.
The minimum investment amount will be Rs 500 and in multiples of Re 1 thereafter. The exit load applicable will be 0.25% if redeemed/ switched out within seven days from the date of allotment/ investment and no exit load if redeemed/ switched out after seven days from the date of allotment/ investment.
“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,” said B. Gopkumar, MD & CEO, Axis Mutual Fund.
He added, “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 capitalising on the transformative trends reshaping India’s banking landscape.”
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,” said Ashish Gupta, Chief Investment Officer at Axis Mutual Fund.
“With increasing financial inclusion and a shift towards more sophisticated banking services, the sector can offer potential for significant returns,” he added.
The scheme will 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 fund will follow a passive investment strategy designed to mirror the performance & constituents of the Nifty Bank TRI. Further, the index undergoes rebalancing on a semi-annual basis to ensure it reflects the current landscape of the sector by including the companies that best represent its performance.
The fund is suitable for investors who are seeking to capitalise 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,” added B. Gopkumar.
