Axis Mutual Fund launches Nifty SDL September 2026 Debt Index Fund

The new fund offer (NFO) opens for subscription from 4 November to 16 November 2022.

The investment objective of the scheme is to provide investment returns corresponding to the total returns of the securities as represented by the Nifty SDL Sep 2026 Index before expenses, subject to tracking errors.

The fund manager to the scheme would be Aditya Pagaria, and the minimum investment amount would be ₹5,000 and in multiples of Re 1, thereafter.

Target maturity funds allow investors to access specific maturity buckets. As a passive fund, the product aims to replicate a designated index created by reputed index providers. The ‘held to maturity’ nature of target maturity strategies aims to minimize duration risk for investors who remain invested through the life of the fund.

These funds do not have lock-ins and hence provide liquidity to investors, should they wish to redeem mid-term without any hassles.

According to the fund house, SDLs (state development loans) are state government securities issued to meet budgetary expenses and implement development projects.

The Axis Nifty SDL September 2026 Debt Index Fund aims to follow a low-friction investment strategy by tracking a pre-specified benchmark/index as closely as possible.

The fund house says that the scheme is ideal for investors looking to create a high-quality passive debt portfolio with a relatively longer investment horizon.

Managed by NSE Indices Ltd, currently, the Nifty SDL Index Sep 2026 is a portfolio of State Development Loans (SDLs) maturing between April 01, 2026 to September 30, 2026. Rebalanced semi-annually, the index comprises of a highly liquid portfolio of SDLs issued by 15 states based on the following parameters:

Commenting on the launch of the NFO, Chandresh Nigam, MD and CEO, Axis AMC said, “We believe that the Axis Nifty SDL September 2026 Debt Index Fund will be a notable add-on to our offerings in the passive debt side. Investors can leverage the benefit of a consistent style (as index represents a defined set SDLs issued by state governments) and a relatively lower risk exposure (as the index fund offers a well-defined mix sovereign exposure by way of SDLs) in addition to lower expenses and market linked returns. As a fund house that believes in ‘responsible investing’, we are offering investors the opportunity to invest in quality assets.”