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 weightings in the index.
Axis Mutual Fund has announced the launch of Axis Nifty 50 Index Fund, which will be open for subscription from 15th November 2021 till 29th November 2021. The Nifty 50 Index Fund 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 Axis Nifty 50 Index Fund will be managed by Jinesh Gopani, Head-Equity. The minimum application amount is Rs 5,000 and investors can invest in multiples of Re 1, thereafter.
The company claims that 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 weightings in the index.
The Nifty 50 Index represents 50 companies selected from the NIFTY 50 section, based on free-float market capitalization. Experts say 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.
The mutual fund company further says 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, STPs & Flexi SIP/STP in addition to lumpsum investments.
Industry experts say, 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 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.
Chandresh Nigam, MD and CEO, Axis AMC says, “Axis AMC offers quality products to investors that suits their risk appetite and needs. 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.”
Highlights of the fund;
• Category: An Open-Ended Index Fund tracking NIFTY 50
• Benchmark: NIFTY 50 Index TRI
• NFO open date: 15th November 2021
• NFO close date: 29th November 2021
• Minimum Application Amount: Rs 5,000
• Fund Manager: Jinesh Gopani, Head-Equity