Axis NIFTY Next 50 Index Fund Everything You Need To Know

Mutual funds are a pool of professionally managed funds that offer active risk management and give investors an opportunity to create long-term wealth. Although none of the mutual fund schemes out there guarantee any returns, they do have the potential to outperform conservative fixed interest rate offering instruments. What a lot of investors are not aware of is the fact that mutual funds can largely be categorized as actively managed funds and passively managed funds.

Index funds are those mutual fund schemes that follow a passive investment style. Let us find out more about passive investing and index funds.

What are index mutual funds?
Market regulator SEBI defines index funds as –
“Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty), etc. These schemes invest in the securities in the same weightage comprising of an index.”
Index funds are open ended schemes that aim at generating capital appreciation over a stipulated period of time by replicating the performance of its underlying benchmark / index with tracking error.

How are index funds different from other active funds?
There is one major difference between that distinguishes passive funds like index funds from other active mutual funds. While most mutual funds are actively managed, index funds follow a passive investment strategy. Here, the fund manager isn’t actively involved in buying or selling stocks on a regular basis. But instead, the index fund portfolio is designed in such a way that it tries to replicate the performance of its underlying benchmark with tracking error. Unlike mutual funds that try to outperform their underlying benchmark, index funds try to create similar returns to that of the underlying securities that comprise the index.

AXIS NIFTY NEXT 50 INDEX FUND - An Open Ended Index Fund tracking the NIFTY NEXT 50 Index

Investment objective
To provide returns before expenses that closely corresponds to the total returns of the NIFTY NEXT 50 subject to tracking errors. However, there can be no assurance that the investment objective of the Scheme will be achieved.

Liquidity
The Scheme offers Units for Subscription and Redemption at NAV based prices on all Business Days. Under normal circumstances, the AMC shall dispatch the redemption proceeds within 10 business days from the date of receipt of the request from the Unit holder.

Benchmark

Nifty Next 50 Index TRI

Plans and Options under the Scheme Plans
- Axis Nifty Next 50 Index Fund - Regular Plan
- Axis Nifty Next 50 Index Fund - Direct Plan

Options under each Plans
- Growth
- Income Distribution cum Capital Withdrawal (IDCW) (Payout and Re-Investment Facility)

Regular Plan
Regular Plan is available for investors who purchase /subscribe Units in a Scheme through a Distributor.

Direct Plan
Direct Plan is only for investors who purchase/ subscribe Units in a Scheme directly with the Fund and is not available for investors who route their investments through a Distributor.

Eligible investors / modes for applying
All categories of investors (whether existing or new Unitholders) as permitted under the Scheme Information Document of the Scheme are eligible to subscribe under Direct Plan. Investments under Direct Plan can be made through various modes offered by the Fund for investing directly with the Fund {except Platform(s) where investors’ applications for subscription of units are routed through Distributors}.
All the plans will have a common portfolio.

Load Structure

Entry Load: Not Applicable

Exit Load: Nil

SEBI vide its circular no. SEBI/IMD/CIR No. 4/ 168230/09 dated June 30, 2009 has decided that there shall be no entry Load for all Mutual Fund schemes

Risks associated with Passive investments strategy

The Scheme will be a passively managed scheme providing exposure to constituents of NIFTY NEXT 50 Index and tracking its performance and yield, before expenses, as closely as possible. The Scheme performance may be affected by a general decline in the Indian markets relating to its underlying Index. The Scheme invests in the Underlying Index regardless of its investment merit.

*To understand all the different kinds of risks associated with this investment scheme, please refer to the Scheme Information Document (SID).

AXIS NIFTY NEXT 50 INDEX FUND
An Open Ended Index Fund tracking the NIFTY NEXT 50 Index

Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.