AXIS MULTI CAP FUND NFO REVIEW
Axis Mutual Fund has launched a new fund offer, Axis Multi cap Fund which will be open for subscription from 26th Nov 2021 to 7th Dec 2021. It is an open-ended fund that, will invest in large-cap, mid-cap and small-cap stocks. SEBI had earlier amended the guidelines, where it had indicated that multi cap funds should invest a minimum of 25% each in large-cap, mid-cap and small-cap stocks.
INVESTMENT OBJECTIVE
To generate long term capital appreciation by investing in a diversified portfolio of equity and equity related instruments across market capitalization.
However, there can be no assurance that the investment objective of the Scheme will be achieved.
WHAT ARE THE INVESTMENT STRATEGIES?
Being in the Multi Cap category, the Scheme has flexibility in terms of allocation across market cap. To ensure diversification of investment across market caps, the scheme will invest a minimum of 25% each in Large, Mid and Small Cap stocks, with the balance 25% flexibility to the fund manager.
The Scheme aims to generate capital appreciation by investing in a diversified portfolio of equity & equity related instruments within a predefined construct of large caps, midcaps and smallcaps
Indian capital markets offer a multitude of investment opportunities across the market cap spectrum. The portfolio of companies will be identified using a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The allocation will be managed actively with an emphasis of identifying best ideas within each market cap bucket.
The fund will aspire to capture potential opportunities throughout the lifecycle of the company’s progression from Small cap all the way to a Large cap. Through this approach the fund will aim to achieve a quality centric long term portfolio with an improved risk reward profile and controlling fund volatility typically faced during fund rebalancing.
BENCHMARK
The performance of the Scheme is measured against Nifty 500 Multicap 50:25:25 Total Returns Index
The asset allocation under the Scheme
Under normal circumstances the asset allocation will be:
Instruments | Minimum | Maximum | Risk Profile |
Equity & Equity Related Instruments of Large Cap Stocks | 25% | 50% | High |
Equity & Equity Related Instruments of Mid Cap Stocks | 25% | 50% | High |
Equity & Equity Related Instruments of Small Cap Stocks | 25% | 50% | High |
Debt and Money Market Instruments | 0% | 25% | Low to Medium |
Units issued by REITs & InvITs | 0% | 10% | Medium to High |
NFO Details
Scheme Opnes | 26-Nov-2021 |
Scheme Closes | 10-Dec-21 |
Scheme re-opens for continuous purchase/Sale | Within 5 Business Days |
Minimum Lumpsum | Rs 5,000 |
Minimum SIP | Rs 1,000 for 6 months |
NAV of the fund | Rs 10 during NFO Period |
Entry Load | Nil |
Exit Load | If redeemed / switched-out within 12 months - For 10% of investment : Nil For remaining investment : 1% If redeemed/switched out after 12 months from the date of allotment: Nil |
Benchmark | Nifty 500 Multicap 50:25:25 ( TRI ) |
Fund Manager | Mr. Anupam Tiwari, Mr. Sachin Jain (for debt Securities) |
Performance of existing Multicap Funds
Here is the performance of some existing Multi cap funds. This would give an idea to investors on how these funds have performed in medium to long term. Returns indicated here are annualized returns.
Scheme Name | 1 Yr Ret ( % ) | 3 Yr Ret ( % ) | 5 Yr Ret ( % ) | Action |
Quant Active Fund | 74.33 | 33.16 | 26.32 | |
Nippon India Multi Cap Fund | 59.24 | 15.85 | 15.46 | |
Mahindra Manulife Multi Cap | 58.34 | 26.59 | -- | |
Baroda Multi Cap Fund | 52.27 | 23.21 | 16.74 | |