The Axis US Treasury Dynamic Bond ETF Fund of Fund (NFO) is a new open-ended fund launched by Axis Mutual Fund on December 12th, 2023. It aims to provide regular income by investing in overseas ETFs focusing on US treasury securities of varying maturities (across duration). While offering diversification and potential for both interest income and capital appreciation, achieving the fund’s objective is not guaranteed. With a minimum subscription of Rs 500 and a small exit load within the first month, the fund offers investors access to the US bond market through a fund-of-fund structure.
The primary investment objective of the Scheme is to provide regular income by investing in units of overseas ETFs where the investment mandate is to invest in US treasury securities across duration.
Benchmark – Bloomberg US Intermediate Treasury TRI
The underlying schemes shall invest in treasury bonds with maturity based on the duration view. The Bloomberg US Intermediate Treasury measures the performance of US dollar-denominated, fixed-rate, nominal debt issued by the US Treasury with a maturity of 1-10 years. Hence, to evaluate the performance of the schemes the benchmark is appropriate.
| Instrument | Indicative Allocations (% of total assets) Minimum | Indicative Allocations (% of total assets) Maximum | High/Moderate/Low |
| Units of overseas ETFs wherein the underlying investments comprise of US treasury securities* | 95 | 100 | Very High |
| Debt and Money market instruments | 0 | 5 | Low to Moderate |
Normally, at least 95% of the scheme’s net assets will be invested in Units of overseas ETFs, subject to the availability of Eligible Investment Amount.
The following is an indicative list of international exchange-traded funds in which the scheme intends to invest:
The scheme may also invest in similar overseas exchange-traded funds which shall have similar investment objectives, investment strategy and benchmarks.
Vinayak Jayanath (for Foreign Securities)
Age: 30 years, Qualification: B. Com, Experience: 10 years.
| SCHEME NAME | NAV (RS\ /UNIT) | AUM (RS. CR) | 1 Month Returns (in %) |
| Aditya Birla Sun Life US Treasury 3–10-year Bond ETFs FoF Regular – Growth | 10.46 | 169.63 | 3.47 |
| Aditya Birla Sun Life US Treasury 1–3-year Bond ETFs FoF Regular – Growth | 10.14 | 65.27 | 1.2 |
| Bandhan US Treasury Bond 0–1-year FoF Regular – Growth | 10.44 | 164.15 | 0.11 |
As this is an NFO there is no past performance recorded for the scheme.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
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