Axis CRISIL-IBX Financial Services 3-6 Months Debt Index Fund NFO Opens on September 18 2025

The Kotak CRISIL-IBX Financial Services 9 to 12 Months Debt Index Fund is an open-ended index fund designed to mirror the performance of the CRISIL-IBX Financial Services 3–6 Months Debt Index. It aims to generate returns in line with the index before expenses, while maintaining relatively low credit and interest rate risks. The fund will invest in high-quality fixed income instruments, offering investors an opportunity for steady income over the short term. With no exit load, relatively low risks, and a minimum investment requirement of ₹5,000, this NFO is suitable for those seeking stability, liquidity, and predictable returns through debt market exposure without actively managed strategies.

Key Features of Kotak CRISIL-IBX Financial Services 9 to 12 Months Debt Index Fund

• Opening Date: September 18, 2025
• Closing Date: September 23, 2025
• Exit Load: Nil
• Minimum Investment Amount: ₹5,000 (and multiples of ₹1 thereafter)

Objective of Kotak CRISIL-IBX Financial Services 9 to 12 Months Debt Index Fund

The objective of Kotak CRISIL-IBX Financial Services 9 to 12 Months Debt Index Fund-Direct (G) is to provide returns that correspond to the total returns of securities represented by the CRISIL-IBX Financial Services 3–6 Months Debt Index before expenses, subject to tracking errors. The scheme does not guarantee achievement of its objective but aims to replicate the performance of the underlying index closely.

Investment Strategy of Kotak CRISIL-IBX Financial Services 9 to 12 Months Debt Index Fund

• Passive investment approach replicating the CRISIL-IBX Financial Services 3–6 Months Debt Index.
• Portfolio rebalanced regularly to maintain alignment with index maturity profile.
• Exposure to short-term fixed income instruments for stable returns.
• Investments may also include money market instruments for liquidity needs.
• Focus on minimising tracking error through efficient replication and portfolio management.

Risks Associated with Kotak CRISIL-IBX Financial Services 9 to 12 Months Debt Index Fund

• Interest Rate Risk: Price fluctuations of debt securities when interest rates change.
• Tracking Error Risk: Returns may deviate from the index due to expenses or market conditions.
• Liquidity Risk: Difficulty in selling bonds during adverse conditions could impact NAV.
• Credit Risk: Issuers of debt securities may default on payments.
• Reinvestment Risk: Interest received may have to be reinvested at lower rates, reducing overall returns.

Risk Mitigation Strategy by Kotak CRISIL-IBX Financial Services 9 to 12 Months Debt Index Fund

The NFO adopts a passive strategy to replicate its benchmark index as closely as possible, reducing active management risks. The AMC uses advanced risk controls, monitoring systems, and compliance checks to minimise tracking errors and credit exposures. By focusing on high-quality fixed income instruments and maintaining a relatively short maturity profile, the scheme aims to limit interest rate volatility. Additionally, the portfolio is rebalanced periodically, ensuring alignment with the benchmark while optimising returns and reducing risks linked to market fluctuations and issuer defaults.

What Type of Investor Should Invest in Kotak CRISIL-IBX Financial Services 9 to 12 Months Debt Index Fund?

• Investors seeking stable income with relatively low risk.
• Conservative investors prefer debt exposure over equity volatility.
• Those with a short-to-medium investment horizon are looking for predictable returns.
• Investors aiming for index-linked performance without active fund management.

Where Will the Kotak CRISIL-IBX Financial Services 9 to 12 Months Debt Index Fund Invest?

• Fixed income instruments replicating CRISIL-IBX Financial Services 3–6 Months Debt Index.
• Debt and money market instruments for liquidity and stability.
• Short-term deposits.
• Units of debt and liquid mutual fund schemes.
• Repo and reverse repo transactions in corporate debt securities.