Axis Mutual Fund announces the launch of its latest fund offering, the ‘Axis US Treasury Dynamic Bond ETF Fund of Fund‘. Benchmarked against the Bloomberg US Intermediate Treasury TRI, the primary investment objective of the scheme is to provide regular income by investing in units of overseas ETFs where the investment mandate is to invest in US treasury securities across duration. However, there can be no assurance that the investment objective of the Scheme will be achieved. The fund will be managed by Mr. Vinayak Jayanath. This new fund offer (NFO) is set to open for subscription on December 12, 2023, and will remain open until December 19, 2023.
- Open for subscription: December 12, 2023
- Remain open until: December 19, 2023
The scheme will aim to allocate 95-100% of its instruments in units of overseas ETFs wherein the underlying investments comprise of US treasury securities (residual maturity of the underlying securities in which investments shall be made shall not exceed 15 years) and the remaining 0-5% in debt and money market instruments. The indicative list of overseas Exchange Traded Funds in which the Scheme proposes to invest is as follows: iShares Short Treasury Bond ETF, iShares 1-3 Year Treasury Bond ETF, SPDR® Bloomberg 1-10 TIPS ETF, iShares 7-10 Year Treasury Bond ETF
The scheme will predominantly follow an active investment strategy for investments in the overseas mutual funds. The fund is designed to dynamically adjust to market fluctuations, aiming to capitalize on the expected yields and minimize risks. This fund has the potential to be an ideal addition for those looking to diversify their portfolio for international exposure.
