Axis Nifty 500 Index Fund NFO: Review, Opening Date & NAV

Introduction

Do you include yourself among those who want to invest in mutual funds and who are keen to show yourself as a leader in this market? Or do you want to invest your money to make it big?

We're back with another thought-provoking and informative blog post that can help you with your next financial step. So, this time, we've devised the business concept of the 'Axis Nifty 500 Index Fund'.

This article will describe what is included in the fund program and how it works.

 

Everything You Need to Know About Axis Nifty 500 Index Fund - NFO

By investing in a diverse basket of Nifty 500 TRI equities, the Axis Nifty 500 Index Fund is designed to provide long-term wealth building. Subject to tracking flaws, the fund seeks to mimic the Nifty 500 TRI's performance. For investors seeking a wide range of markets through a single fund, this makes it appropriate.

The lowest investment required to join is Rs.100 for investors and in multiple of Rs.1 thereof. The scheme is suitable for such investors who are looking for Investors with a lengthy investing horizon and by investing in the stocks that make up the index, the fund seeks to replicate the results of the Nifty 500 TRI. The scheme has a 0.25% Exit Load if redeemed within 15 days from the allotment date.

To learn about the fund's asset allocation, and other financial characteristics that influence decision-making, carefully read this blog.

 

Axis Nifty 500 Index Fund - NFO Overview

The investment period for the Scheme is set for June 26, 2024, to July 9, 2024. The scheme is a very high-risk scheme. There is no assurance that the scheme's investment goal will be met. The scheme will invest in Securities covered by the Nifty 500 index, Debt & Money Market instruments, Derivatives, short-term Deposits, and Units of Mutual Fund Schemes. About 92% of India's stated market capitalization is represented by the fund's allocation, which is roughly 73% largecap, 17% midcap, and 10% smallcap firms. The scheme has no entry load.

 

 

Fund Overview

Start Date	26 June 2024
End Date	09 July 2024
VRO rating	-
Expense ratio	1%
Exit load	0.25% if redeemed within 15 days and Nil after 15 days.
AUM (Fund size)	NA
Lock-in	No Lockin
Stamp Duty	0.005% (From July 1st 2020)
Benchmark	NIFTY 500 TRI
Min. Investment	Rs.100
Risk	Very High
Short-term capital gains (STCG)	For less than 3 years, as per Tax Slab
Long-term capital gains (LTCG)	For more than 3 years, 20% is applicable.

 

The Objective of the Fund

The Scheme intends to produce returns before costs that roughly match the Nifty 500 TRI's total returns Subject to tracking failures. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

Asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows:

Types of Instruments	Minimum Allocation (% of Net Assets)	Maximum Allocation (% of Net Assets)	Risk Profile
Securities covered by Nifty 500 index	95	100	Very High
Debt & Money Market Instrument	0	5	Low

 

 

Peers of Axis Nifty 500 Index Fund 

Index / Debt Funds	1Y Return	AUM (Cr)
ICICI Prudential Retirement Fund - Pure Equity Plan-Growth	57.20%	795.85
Parag Parikh Flexi Cap Fund Regular-Growth	37.34%	66,383.82
HDFC Retirement Savings Fund Equity Plan Regular-Growth	40.34%	5,159.41

 

Risk Factors in Such Funds

• Trading futures contracts carry a significant risk of loss due to the low-margin deposits needed, the high degree of leverage involved in futures pricing, and the potential for high market volatility.

• The Scheme assumes a risk that it may not be able to accurately forecast future market trends or the value of assets, indices, or other financial or economic factors when establishing derivative positions for the Scheme.

• The plan will be passively managed and will mirror the performance and income of the Nifty 500 Index before expenses. It will also provide exposure to its constituents. A widespread drop in the Indian markets to the Scheme's underlying Index could have an impact on the Scheme's performance. Regardless of the underlying Index's investing merit, the Scheme makes investments in it.

• Purchases being delayed or underlying stocks that are included in the index not being available.

• The time it takes for securities that the Index has eliminated to be liquidated.

• The disparity in the underlying stocks' valuations is provided by the AMC's valuation providers and the index provider.

• The Scheme may retain some of the available funds in cash to cover redemptions, corporate actions, or other purposes. As a result, the funds may not always be invested.

• Circuit filters may cause a brief halt to securities trading.

• Business operations including the conversion of warrants or debentures, the issue of rights, mergers, and changes to constituents, among others.

 

Past Performance of Index / Debt Funds

Index / Debt Funds	NAV (Rs)	Annualized Return (1Y)	Return/Risk
Navi Nifty Bank Index Fund - Direct Plan-Growth	13.48	18.86%	Very High Risk
Motilal Oswal S&P 500 Index Fund - Direct Plan-Growth	20.911	27.92%	Very High Risk
Invesco India Nifty G-Sec Sep 2032 Index Fund - Direct Plan-Growth	1107.65	7.58%	Moderate Risk

 

 

Axis Nifty 500 Index Fund NFO - Who can invest?

This fund is ideal for you if you are looking for Investment with a lengthy investing horizon and investing in the stocks that make up the index, the fund seeks to replicate the results of the Nifty 500 TRI.

 

Axis Nifty 500 Index Fund NFO - Growth Fund Managers

• Sachin Relekar.

• Karthik Kumar.
  
  

Conclusion

The scheme comes under a very high-risk category and it plans to invest in Securities covered by the Nifty 500 index, Debt & Money Market instruments, Derivatives, short-term Deposits, and Units of Mutual Fund Schemes each has different risks. Always assess your Financial Goals, Risk tolerance, etc. before making an investment decision.

Disclaimer: This NFO analysis is provided solely for informative reasons and should not be construed as investment advice. Always conduct research and talk with a financial advisor before investing.