Axis Mutual Fund has announced the new fund offer (NFO) of the Axis Growth Opportunities Fund from 1st October to 15th October 2018. This new scheme will invest in domestic as well as international equities with Schroders Investment Plc acting as the advisor for international investments. This new launch will allow Indian mutual fund investors to gain greater access to global markets through a rupee denominated fund. In the current climate of rupee depreciation, this fund might be subject to significant short term volatility due to its exposure to international markets. Axis Growth Opportunities Fund is an open-ended diversified equity scheme which will allow investors to invest in and redeem units on all business days.
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This new diversified equity fund from Axis Mutual Fund will invest between 30 to 35% of its assets in large cap equities and up to 35% in foreign equities with focus on large cap stocks. Additionally, between 35 to 40% of scheme assets will be invested in domestic mid cap stocks. The Axis Growth Opportunities Fund will follow a bottom-up approach which is typical of Axis AMC. The scheme will focus on selecting quality stocks that feature efficient management and are potentially capable of providing sustained medium to long term capital growth. The international investments of this scheme will focus on key markets such as the Americas, Europe (except UK), the Middle East and Japan.
The S&P BSE 200 Index will be used as the scheme’s benchmark. However, as this benchmark index does not include any international equities, the choice may be a cause for concern and not a true indicator of potential scheme returns. The 1 year, 3 year and 5 year returns of the S&P BSE 200 Index are 17.75%, 15.90% and 19.99% as of 31st August 2018.Top 5 constituents of this index in order of weightage are Reliance Industries, HDFC Bank, Housing Development Finance Corporation, Infosys and ITC.
Axis Growth Opportunities Fund will be co-managed by Jinesh Gopani and Hitesh Das with the latter focusing on foreign securities. Other top schemes managed by them (individually/ as co-managers) include the Axis Long Term Equity Fund (AUM Rs. 18,752 crores as of 31st August 2018) and Axis Focused 25 Fund (AUM Rs. 6053 crores as of 31st August 2018). Among these the Axis Long Term Equity Fund is among the top rated ELSS in India with 3 year and 5 year returns of 12.71% and 24.78% respectively. Similarly, the Axis Focused 25 Fund is also among the top performers in the multicap category with 3 year and 5 year returns of 17.43% and 20.28% (returns based on scheme NAV recorded 26th September).
The following are some key information regarding the Axis Growth Opportunity Fund NFO:
|NFO Period||1st to 15th October, 2018|
|Minimum Investment||Rs. 5000|
|Benchmark||S&P BSE 200 Index|
|Fund Managers||Jinesh Gopani and Hitesh Das|
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