NFO Alert: Axis Mutual Fund launches Axis India Manufacturing Fund; all you need to know

NFO Alert: Axis Mutual Fund launches Axis India Manufacturing Fund; all you need to know

Axis Mutual Fund announced the launch of the Axis India Manufacturing Fund, an open-ended equity scheme representing the Indian manufacturing theme.

The scheme opened for public subscription on December 01, 2023, and will close on December 15, 2023. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.

What kind of mutual fund scheme is this?

This is an open-ended equity scheme representing the Indian manufacturing theme. This product is suitable for investors seeking

  • Capital appreciation over the long term
  • An equity scheme investing in Indian equity and equity-related securities of companies engaged in the manufacturing theme.

What is the main objective of investing in this fund?

The primary objective of the scheme is to provide long-term capital appreciation by investing in equity and equity-related securities of companies engaged in the manufacturing theme. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. The scheme does not assure or guarantee any returns.

How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of 500 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation of the scheme will be as follows:

Instruments

Indicative allocations (% of total assets)

Risk Profile

Minimum

Maximum

High/Medium/Low

Equity and equity-related instruments of companies having manufacturing theme

80%

100%

Very High

Other equity and equity-related instruments 

0%

20%

Very High

Debt & Money Market instruments

0%

20%

Moderate

Units issued by REITs & InvITs

0%

10%

Very High

Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such manufacturing fund. These include:

Mutual Fund House

Name of the Fund

10-year returns (in %)

Navi Mutual Fund

Navi Nifty India Manufacturing Index Fund

Kotak Mahindra Mutual Fund 

Kotak Manufacture in India Fund

Bank of India Mutual Fund

Bank of India Manufacturing & Infrastructure Fund

20.13

ICICI Prudential Mutual Fund

ICICI Prudential Manufacturing Fund

Aditya Birla Sun Life Mutual Fund

Aditya Birla Sun Life Manufacturing Equity Fund

Axis Mutual Fund

Axis India Manufacturing Fund

Source: AMFI (As of December 01, 2023)

How will the scheme benchmark its performance?

The performance of the scheme will be benchmarked against the NIFTY India Manufacturing TRI. 

The scheme’s portfolio will be market-cap agnostic and will be diversified both in terms of sector and market capitalisation. The Nifty India Manufacturing index aims to track the performance of stocks that represent manufacturing sectors in India. The stocks are selected from a combined universe of Nifty 100, Nifty Midcap 150, and Nifty Small Cap 50 index. A stock’s weight in the Nifty India Manufacturing index is based on its free-float market capitalisation subject to a maximum weight of each stock at 5%. The index also has a minimum weight of 20% for certain manufacturing sectors. The constituents of the index reflect the fund’s universe in the best possible way. The Trustee/AMC reserves the right to change the benchmark for the evaluation of the performance of the Scheme from time to time, keeping in mind the investment objective of the scheme and the appropriateness of the benchmark, subject to SEBI guidelines and other prevalent guidelines.

Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would be calculated as under:

  • If redeemed/switched out within 12 months from the date of allotment –
  1. For 10% of investment: Nil
  2. For remaining investment: 1%
  • If redeemed/switched out after 12 months from the date of allotment: Nil

Who will manage this scheme?

Shreyash Devalkar and Nitin Arora are the designated fund managers of this scheme.

Does the fund contain any inherent risk?

The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.

 

 

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Updated: 04 Dec 2023, 04:29 PM IST

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