Mumbai, Feb 7 (PTI) Axis Mutual Fund on Tuesday announced a new open-ended target maturity index fund that will invest in the constituents of Crisil IBX 50:50 gilt plus SDL (state government bonds) index fund.

The new fund opens for subscription on Wednesday and closes on February 21. The fund matures on September 30 2027, Axis AMC said in a statement.

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The investment objective of the new scheme, which has no exit load, is to provide investment returns corresponding to the total returns of the securities as represented by the index before expenses, subject to tracking errors. However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved, said chief executive Chandresh Nigam.

The scheme will allocate 95-100 per cent of its underlying securities in debt instruments comprising the SDL September 2027 index and the remaining in debt and money market instruments such as treasury bills and government securities having a residual maturity up to one year, Nigam said.

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