Axis Nifty Energy ETF

The scheme follows a passive investment strategy. The Scheme would invest in stocks comprising the underlying index and shall track the benchmark index. The Scheme may also invest in Money Market Instruments and units of debt & liquid mutual fund schemes, in compliance with Regulations to meet liquidity and expense requirements and in line with the asset allocation pattern. The Scheme shall invest in stocks forming part of the underlying Index in the same ratio as per the index to the extent possible and to that extent follow a passive investment strategy, except to the extent of meeting liquidity and expense requirements. Events like the constituent stocks becoming illiquid in the cash market, the exchange Index Provider changing the constituents, a large dividend going ex but lag in its receipts, etc. tend to increase the tracking error. In such events, it may be more prudent for the Scheme to take exposure through derivatives of its constituent stocks in order to minimize the long term tracking error.