Axis Mutual Fund Announces Scheme Merger Effective April 30, 2025

Axis Mutual Fund will merge the Axis CRISIL IBX 70:30 CPSE Plus SDL April 2025 Index Fund with the Axis CRISIL IBX SDL May 2027 Index Fund. The merger will take effect on April 30, 2025.

Impact of the Merger

After the merger, the Axis CRISIL IBX 70:30 CPSE Plus SDL April 2025 Index Fund will no longer exist. Investors in this scheme will automatically become unitholders in the Axis CRISIL IBX SDL May 2027 Index Fund. The units held in the original fund will be converted into equivalent units of the new fund based on applicable Net Asset Values (NAVs) on the merger date.

About the Two Funds

The Axis CRISIL IBX 70:30 CPSE Plus SDL April 2025 Index Fund currently tracks an index made up of 70% Central Public Sector Enterprises (CPSEs) and 30% State Development Loans (SDLs), all maturing around April 2025.

In contrast, the Axis CRISIL IBX SDL May 2027 Index Fund tracks an index focused entirely on SDLs with a maturity date around May 2027. This fund has a longer duration and excludes CPSEs from its portfolio.

Exit Window for Investors

Investors who do not wish to continue in the merged scheme can redeem or switch their units without incurring any exit load. This exit window will be available from March 28, 2025, to April 29, 2025.

Reason for Merger

According to the official communication, the merger is part of a rationalisation exercise to simplify the fund offerings and align with investment objectives. The new scheme will continue to follow a passively managed investment strategy, tracking the CRISIL IBX SDL Index – May 2027.

Conclusion

The merger will be executed on April 30, 2025, and all investors in the April 2025 fund will be transitioned to the May 2027 fund unless they opt out during the exit window.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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