Axis Mutual Fund launches Axis S&P BSE Sensex ETF

Axis Mutual Fund has announced the launch of their New Fund Offer of Axis S&P BSE Sensex ETF, an open-ended Exchange Traded Fund tracking S&P BSE Sensex TRI. Ashish Naik will manage the fund.

The minimum investment amount is Rs. 5,000 and in multiples of Re 1. The new fund will track the S&P BSE Sensex TRI benchmark and endeavor to generate alpha by investing in domestic equity ETFs based on the fund manager’s top down investment view.

ETFs are soon becoming one of the most popular vehicles of investing in passive strategies as they replicate the portfolio of the underlying index while trading in bite sized units on an exchange at market determined prices.

The investment objective of the Axis S&P BSE Sensex ETF is to provide returns before expenses that correspond to the total returns of the S&P BSE Sensex TRI Index subject to tracking errors.

According to the fund house, the Scheme endeavors to invest in stocks forming part of the underlying index in the same ratio as per the index to the extent possible. Essentially, 95% to 100% of the investments will be made in equity instruments covered by S&P BSE Sensex TRI and the remaining in Debt and Money Market investments. To that extent follows a passive investment strategy, except to the extent of meeting liquidity and expense requirements.