Although it works in similar ways to open-ended overnight funds, it primarily caters to those who regularly trade in stock markets. It has little credit or interest rate risk, making it a safe bet.
SEBI's Wholetime Member Ananta Barua said the market regulator is also looking at implementing other measures as announced in the annual budget by FM Sitharaman.
Axis Mutual Fund to launch debt ETF on April 23
April 22, 2021
Fund to invest in high quality debt papers
Axis Mutual Fund will launch a new exchange traded fund – ‘Axis AAA Bond Plus SDL ETF 2026 Maturity’ with the new fund offer set to open for subscription on Friday. It will close on May 7.
The target maturity ETF will invest in a portfolio of high quality debt instruments. The benchmark index has a maturity date of April 30, 2026.
The benchmark will have an equal allocation towards AAA-rated securities and SDLs, thus offering investors with a high credit quality and diversified portfolio.
The launch will facilitate passive investing for debt investors by offering them a fund that has defined tenure of close to 5 years.