by Prashant Kapadia/NHN
A fund that aims to offer a global investment opportunity by investing in domestic equities as well as foreign securities by leveraging its relationship with Schroder Investment Management Limited (as investment advisor)
NFO open date: October 01, 2018. NFO close date: October 15, 2018
New Delhi, October 10, 2018: Axis Mutual Fund, one of the leading asset management companies, announced the launch of its new fund – ‘Axis Growth Opportunities Fund’. India’s equity market cap is just 3% of world’s market cap indicating that domestic mutual fund investors are not exposed to 97% of the world’s equity investment opportunities. This fund aims to offer global diversification to Indian investors by participating in equity and equity related instruments both in India as well as overseas. Some of the key features of global diversification from an investor’s perspective are:
Different markets in the world perform at different times due to low correlation between them creating diversification opportunity
Global diversification has the potential to optimize returns while reducing risk of the overall portfolio significantly
Global allocations help better withstand event shocks
Opportunity to invest in global unexplored themes
The fund will typically look to have 30-35% in domestic large caps & up to 35% in foreign securities (predominantly large caps) making total large caps as 35-65% and total domestic midcaps of 35-40%. Overseas allocation will be made by directly investing in foreign securities advised by Schroder Investment Management Limited. Overseas investment philosophy is aligned with domestic Axis philosophy of bottom up investing in high quality stocks with high growth prospects. The target of the high quality portfolio construct is to generate sustainable long term performance while keeping risk contained. The highly experienced fund management team at Axis AMC & global expertise from Schroder is well placed to execute on this philosophy.
Mr. Chandresh Kumar Nigam, MD & CEO, Axis AMC said, “If Indian investors are the consumers of multiple global brands in their day to day lives, they should be given access to participate in their global growth stories. We at Axis are happy to launch our new fund ‘Axis Growth Opportunities Fund’ that offers global diversification to Indian investors by leveraging our relationship with Schroder and their global equity investing expertise.” The minimum application amount for this fund is Rs. 5,000 and in multiples of Re. 1/- thereafter. The fund offers a direct and regular plan, both with growth and dividend options. An exit load of 1% is applicable if redeemed/switched out on or before 12 months from the date of allotment. The fund offers Nil exit-load for redemption up to 10% of the investment amount.