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Axis Mutual fund launches Axis India manufacturing fund

07 February 20244 mins read by Angel One
The new fund offer (NFO) is already opened for subscription on December 1, 2023, and will close on December 15, 2023. The minimum subscription amount is Rs 500.
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The Axis India Manufacturing Fund is an open-ended equity scheme that invests in equity and equity-related securities of companies engaged in manufacturing. The fund seeks to provide long-term capital appreciation by investing in Indian companies across three segments of the economy: those investing in production capacity and R&D for future gains, those within industries with a rising demand trajectory, and those that are likely to benefit from India’s growing integration into the global supply chain. The NFO by Axis Mutual Funds is already opened for subscription on December 1, 2023, and will close on December 15, 2023. The minimum subscription amount required to apply for the NFO is Rs 500.

Scheme Objective

The objective of the NFO is to provide long-term capital appreciation by investing in equity and equity-related securities of companies engaged in manufacturing theme.

Manufacturing refers to the processing of raw materials or parts into finished goods. It allows businesses to sell finished products at a higher cost than the value of the raw materials used. Large-scale manufacturing allows for goods to be mass-produced, while efficient manufacturing techniques enable manufacturers to take advantage of economies of scale.

Benchmark – NIFTY India Manufacturing TRI

Asset Allocation

Instruments Indicative allocations (% of total assets) Risk Profile as per risk-o-meter
Minimum Maximum
Equity & Equity related instruments selected based on manufacturing theme 80 100 Very High
Other Equity & Equity Related Instruments 0 20 Very High
Debt Instruments Money Market 0 20 Moderate
Units issued by REITs & InVITS 0 10 Very High
  • Investment in derivatives instruments is limited to 45% of equity portfolio allocation and 5% of debt portfolio allocation.
  • Investment in securitized debt, excluding foreign securitized debt, is capped at 40% of the debt portfolio allocation.
  • Up to 5% of the scheme’s net assets can be invested in units of debt and liquid mutual fund schemes of Axis AMC or other mutual funds.
  • Exposure to repo transactions in corporate debt securities is restricted to 10% of the scheme’s net assets.

Fund Managers

Shreyash Devalkar – Age: 43 years

Qualifications: Bachelor in Chemical Engineering & Masters in Management Studies

Total number of years of experience: 10 years

Other schemes under his management: Axis Blue-chip Fund, Axis Midcap Fund, Axis Small Cap Fund, Axis Flexi-cap Fund, Axis Multicap Fund and Axis Equity ETFs FoF.

Nitin Arora – Age: 37 years

Qualifications: MSC in Finance and Investments

Total number of years of experience: 10 years

Other schemes under his management: Axis Retirement Savings Fund – Aggressive Plan, Dynamic Plan & Conservative Plan, Axis Value Fund and Axis Multicap Fund.

It is important to understand that the fund is only investing in manufacturing-related equity and other instruments, so the growth will be at a medium pace as technological advancement will contribute partially to this theme.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.

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