Axis Mutual Fund unveils NFO for banking sector index fund

Hyderabad: Axis Mutual Fund has announced the New Fund Offer (NFO) of the 'Axis Nifty Bank Index Fund', aiming to tap into the growth of the Indian banking sector. The open-ended index fund seeks to track the Nifty Bank TRI, providing investors with direct participation in leading Indian banks' growth narrative.

B. Gopkumar, MD & CEO of Axis AMC, highlighted India's economic rise and the resilience of its banking sector, fueled by robust regulatory frameworks and digital banking adoption. The Axis Nifty Bank Index Fund allows investors to tap into this growth, benefitting from innovation and high governance standards.

Managed by Karthik Kumar and Ashish Naik, the fund aims to mirror the total returns of the Nifty Bank TRI, with investments in large and liquid banking stocks. Ashish Gupta, Chief Investment Officer at Axis AMC, emphasized the fund's potential amidst increasing financial inclusion and demand for sophisticated banking services.

The scheme invests in stocks comprising the underlying index, following a passive investment strategy. It may also invest in debt and money market instruments for liquidity and expense requirements. The fund offers a cost-effective way to gain exposure to the Indian banking sector, including a mix of Large-Cap and Mid-Cap banking companies (PSUs and Private Banks).

The NFO of the Axis Nifty Bank Index Fund opens for subscriptions on May 3, 2024, and closes on May 17, 2024.