Axis Mutual Fund, one of the leading asset management companies in India announced the launch of Axis Nifty 50 Index Fund, today. It is an open-ended scheme that will track the Nifty 50 Index TRI and allow investors to passively participate in the large cap universe. The NFO opens for subscription on 15th November 2021 and closes on 29th November 2021. The Axis Nifty 50 Index Fund will be managed by Jinesh Gopani, Head-Equity. The minimum application amount is INR 5,000 and investors can invest in multiples of INR 1, thereafter. The fund’s passive strategy seeks to replicate the Nifty 50 Index by investing in a basket of Nifty 50 Index stocks across 13 categories in the same proportions as their weightages in the index.
The Nifty 50 Index represents 50 companies selected from NIFTY 50 universe, based on free-float market capitalization. As the index is considered as the de-facto barometer of the Indian equity market, the fund can be an ideal option for investors looking for market-linked equity returns and long term wealth creation solutions. Through a single index, investors can benefit from diversification and quality investments in large cap bluechip companies. Furthermore, given the mutual fund structure, investors can look to invest through various systematic options like SIPs, STP’s & Flexi SIP/STP in addition to lumpsum investments.
Passively managed index funds have started gaining significance amongst domestic investors due to the potential of benchmark returns. In addition to lower expense ratios and the lower tracking error, index funds provide the benefit of complete transparency of the portfolio composition. As they replicate the index and do not carry out any security selection, passive funds provide more predictability in terms of their performance in different phases of the market.
Mr. Chandresh Nigam, MD & CEO, Axis AMC said, “Axis AMC has believed in offering quality products to investors that suits their risk appetite and needs. Not only do we aim to build a robust product portfolio but hope to deliver consistent performance in every fund that we manage. Axis Nifty 50 Fund’s low friction investment strategy that relies on broader market wisdom coupled with the principle of ‘quality & growth’ philosophy will yield wealth creation opportunities for investors.”
Source: NIFTY Indices, MFI Explorer, Axis MF Research