The New Fund Offer (NFO) will be open for subscription from October 28 to November 11.
The scheme will be benchmarked against a composite index of 65% NIFTY Short Duration Debt Index and 35% Nifty 50 Arbitrage TRI.
According to the fund house, the scheme will allocate 50–65% of its portfolio to passive debt-oriented mutual fund schemes and 35–50% to arbitrage funds, with up to 5% in money market instruments.
The fund will be managed by Devang Shah, Aditya Pagaria, Hardik Satra, and Karthik Kumar. The minimum investment amount is ₹100, and there is no exit load.
The fund’s structure combines debt and arbitrage exposure to seek stable returns with lower volatility. The debt component will follow a passive roll-down strategy aimed at managing interest rate risk, while the arbitrage allocation will take fully hedged positions to minimize market exposure.
Axis Mutual Fund said the hybrid design seeks to provide tax efficiency and liquidity benefits. Investors can redeem their units with a T+2 settlement, and the scheme structure allows internal rebalancing without triggering tax liability at the fund level.
The fund qualifies for long-term capital gains (LTCG) taxation at 12.5% if held for more than 24 months, as per current tax rules applicable to such hybrid fund structures.
Axis AMC’s Managing Director and CEO B Gopkumar said the fund is designed to “combine stability, transparency, and tax efficiency” for investors seeking predictability in fixed-income products.
Chief Investment Officer Ashish Gupta said the product aims to leverage passive roll-down strategies and hedged arbitrage exposure “to offer a predictable and transparent investment experience.”
The fund’s investment objective, asset allocation, and risk factors are detailed in its Scheme Information Document (SID) available on the Axis Mutual Fund website.
First Published: Oct 27, 2025 1:55 PM IST
