Axis Mutual Fund has filed the draft documents for the Axis Sector Rotation Fund, an open-ended thematic equity scheme. The fund is to invest in equities and related instruments using a sector rotation approach.
Its stated objective is to generate long-term capital appreciation, though there is no assurance this will be achieved.
The scheme will track the Nifty 500 Total Return Index (TRI) as its benchmark, allowing exposure across large-, mid- and small-cap stocks. Units will be offered at ₹10 during the new fund offer (NFO) period.
The fund will follow an active strategy, shifting allocations across sectors based on market conditions and internal assessment.
It will typically invest between 80% and 100% of its assets in equity and equity-related instruments within selected sectors.
Exposure to other sectors, money market instruments and exchange-traded funds such as gold and silver may go up to 20%.
The portfolio is expected to hold positions in 4 to 6 sectors at a time, based on prevailing trends.
The scheme may use derivatives for hedging and portfolio balancing, with exposure capped at 45% of the equity allocation.
It can also invest up to 20% of its net assets in overseas securities, subject to regulations.
Other permitted investments include units of InvITs, mutual funds, and short-term money market instruments.
The fund retains flexibility to rebalance the portfolio in response to market movements within regulatory timelines.
The minimum investment amount is ₹100, with additional investments allowed in multiples of ₹1. The scheme offers both direct and regular plans, with growth and income distribution options.
An exit load of 1% applies on certain redemptions within 12 months, while no entry load is charged. Redemption proceeds are generally processed within 3 working days.
Read More: Axis Nifty India Defence Index Fund NFO Closes Today, April 24, 2026!
The filing outlines a sector-focused equity scheme with flexibility across sectors and asset classes. Returns will depend on sector allocation decisions and broader market conditions, with risks linked to its thematic approach.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 24, 2026, 3:21 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
