Description

NSE informs members about the merger of Axis Nifty AAA Bond Plus SDL Apr 2026 50:50 ETF FOF (merging scheme) into Axis CRISIL IBX 50:50 Gilt Plus SDL June 2028 Index Fund (surviving scheme), effective after business hours on April 30, 2026.

Summary

NSE has informed all members about the merger of Axis Nifty AAA Bond Plus SDL Apr 2026 50:50 ETF FOF (Merging Scheme) into Axis CRISIL IBX 50:50 Gilt Plus SDL June 2028 Index Fund (Surviving Scheme) on the NSE MF Invest Platform. The merger is effective after business hours on April 30, 2026. Investors who do not wish to participate in the merger may redeem or switch to other Axis Mutual Fund schemes without exit load during the specified exit window.

Key Points

  • Merging Scheme: Axis Nifty AAA Bond Plus SDL Apr 2026 50:50 ETF FOF
  • Surviving Scheme: Axis CRISIL IBX 50:50 Gilt Plus SDL June 2028 Index Fund
  • Merger effective after business hours on April 30, 2026
  • Existing investors opposed to the merger may exit without payment of exit load between March 30, 2026 and April 29, 2026 (both days inclusive)
  • Existing SIP/XSIP/SWP in the merging scheme will continue to be processed during the exit load waiver period
  • Post-merger, all SIP/XSIP/STP/SWP registered under the merging scheme will be automatically shifted to the surviving scheme after business hours on April 30, 2026
  • The merging scheme will cease to exist after the merger effective date
  • Circular reference: NSE/NMFTM/73583, Circular Ref. No: 1306/2026

Regulatory Changes

No new regulatory framework is introduced. The merger is executed under the existing SEBI mutual fund scheme merger guidelines. The surviving scheme’s investment objective and asset allocation (Axis CRISIL IBX 50:50 Gilt Plus SDL June 2028 Index Fund, an open-ended target maturity index fund) will govern post-merger investments.

Compliance Requirements

  • NSE members are required to take note of the merger and communicate relevant details to their clients invested in the merging scheme
  • Members must ensure the NSE MF Invest platform processes redemption/switch requests from dissenting investors within the exit load waiver window (March 30 – April 29, 2026)
  • No specific action required from members beyond awareness and facilitating client requests

Important Dates

  • March 30, 2026: Start of exit load waiver period for dissenting investors
  • April 29, 2026: Last day of exit load waiver period (both days inclusive)
  • April 30, 2026 (after business hours): Merger effective date; merging scheme ceases to exist; SIP/XSIP/STP/SWP shifted to surviving scheme

Impact Assessment

The merger has a moderate impact on investors currently holding units in Axis Nifty AAA Bond Plus SDL Apr 2026 50:50 ETF FOF. Investors have a clearly defined exit window without load penalty. Post-merger, the surviving scheme’s mandate (June 2028 target maturity, index-based) differs from the merging scheme (April 2026 target maturity, ETF FOF), which may not align with all existing investors’ investment horizons. Automated SIP/XSIP/STP/SWP registrations will be migrated automatically, requiring investor awareness to avoid unintended continuation in a longer-duration fund.

Impact Justification

Scheme merger affects existing investors in the merging scheme who must act before April 29, 2026 if they wish to exit without load; routine mutual fund consolidation with defined exit window and process.