Description

Axis Mutual Fund announces scheme name change and category realignment effective August 31, 2025 to comply with SEBI's new FOF framework.

Summary

Axis Mutual Fund announces changes to its Nasdaq 100 Fund of Fund scheme to align with SEBI’s new Framework for Fund of Fund schemes with multiple underlying funds. The scheme will be renamed from ‘Axis Nasdaq 100 Fund of Fund’ to ‘Axis US Specific Equity Passive FOF’ effective August 31, 2025.

Key Points

  • Scheme name changed from ‘Axis Nasdaq 100 Fund of Fund’ to ‘Axis US Specific Equity Passive FOF’
  • Category changed from ‘Equity oriented FOF (Overseas)’ to ‘Equity FOF’
  • Sub-category changed from ‘Country specific’ to ‘Passive option’
  • Changes approved by AMC and Trustee to comply with SEBI framework
  • SID and KIM documents will be modified accordingly
  • All other terms and conditions remain unchanged

Regulatory Changes

SEBI issued a framework on February 06, 2025 (with subsequent amendments) for launching Fund of Fund schemes with multiple underlying funds. The framework introduces new categorization:

  • Active option: FOFs investing in multiple active funds
  • Passive option: FOFs investing in multiple passive funds

Compliance Requirements

  • Scheme Information Document (SID) and Key Information Memorandum (KIM) must be updated
  • Investors need to be notified of the changes
  • All documentation must reflect new nomenclature and categorization

Important Dates

  • August 31, 2025: Effective date for all scheme changes
  • August 29, 2025: Date of circular issuance
  • February 06, 2025: SEBI framework announcement date

Impact Assessment

The changes are primarily administrative and compliance-driven with minimal operational impact on investors. The underlying investment strategy and fund management remain unchanged. Existing investors will automatically be part of the renamed scheme without any action required on their part.

Impact Justification

Scheme name change and category realignment affects existing investors but is compliance-driven with no operational impact