Axis Nifty 500 Index Fund NFO : Review & Complete Analysis

The Axis Nifty 500 Index Fund is a new fund offering (NFO) designed for investors looking to build long-term wealth by investing in a diverse basket of Nifty 500 TRI equities. The fund aims to replicate the performance of the Nifty 500 TRI, subject to tracking errors.

Key Details

• Minimum Investment: Rs.100

• Exit Load: 0.25% if redeemed within 15 days from the allotment date

• Investment Period: June 26, 2024 - July 9, 2024

• Risk Level: Very High

• Benchmark: NIFTY 500 TRI

Fund Overview

• Start Date: June 26, 2024

• End Date: July 9, 2024

• Expense Ratio: 1%

• Exit Load: 0.25% (if redeemed within 15 days), Nil after 15 days

• No Lock-in Period

• Stamp Duty: 0.005% (from July 1, 2020)

• Asset Allocation:

• Securities covered by Nifty 500 index: 95%-100% (Very High Risk)

• Debt & Money Market Instruments: 0%-5% (Low Risk)

Fund Objective The scheme aims to produce returns before costs that closely match the Nifty 500 TRI's total returns. However, there is no guarantee that the investment objective will be achieved.

Risk Factors

• Significant risk of loss due to the low-margin deposits and high leverage involved in futures pricing.

• Potential for high market volatility.

• Difficulty in forecasting future market trends or the value of assets.

• Passive management risk and potential tracking errors.

• Risks from circuit filters, market operations, and delays in trading or liquidation of securities.

The Axis Nifty 500 Index Fund is categorized as a very high-risk investment that plans to invest in a variety of securities covered by the Nifty 500 index, along with Debt & Money Market instruments, derivatives, short-term deposits, and units of mutual fund schemes. Investors should carefully assess their financial goals and risk tolerance before investing.

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