NFO Alert: Axis Mutual Fund launches Axis Nifty Bank Index Fund; all you need to know

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investors seeking The investment objective of the scheme is to provide returns before expenses that correspond to the total returns of the Nifty Bank TRI subject to tracking errors. However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.

Investors can invest under the scheme with a minimum investment of ₹500 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation of the scheme will be as follows:Indicative allocations (% of total assets)MinimumMaximumSecurities covered by Nifty Bank TRI95%100%Very HighDebt & Money Market Instruments0%5%Low to Moderate To date, some mutual fund houses have launched similar funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:Mutual Fund HouseName of the fundMotilal Oswal Mutual FundMotilal Oswal Nifty Bank Index FundICICI Prudential India Mutual FundICICI Prudential Nifty Bank Index FundAxis Mutual Fund Axis Nifty Bank Index FundNavi Mutual FundNavi Nifty Bank Index FundNippon India Mutual FundNippon India Nifty Bank Index Fund Considering the investment in the scheme is made to achieve returns that commensurate with the performance of the Nifty Bank Index, we propose to have Nifty Bank TRI as the benchmark.

The Total Return variant of the index (TRI) will be used for performance comparison. The Nifty Bank Index is designed to reflect the behaviour and performance of large and liquid banks.

The index comprises a maximum of 12 stocks and the base date of the index is January 1, 2000. This scheme involves no ‘Entry Load’, which means that investors do not have to