New Fund Offer: Axis Mutual Fund launches Axis Banking ETF – Check details

By: |
October 15, 2020 4:12 PM

Axis Mutual Fund has announced the launch of their new fund offer – ‘Axis Banking ETF’.

axis mutual funds nfoThe fund has been designed in a manner that it tracks the performance of the 12 largest banks listed on the NSE.

Axis Mutual Fund has announced the launch of their new fund offer – ‘Axis Banking ETF’. In a statement, Axis MF said it is an an Exchange Traded Fund which offers investors an opportunity to invest in the biggest banks in India at their own pace as it gives exposure to them all in a neatly packed bite-sized exchange traded fund.

The fund has been designed in a manner that it tracks the performance of the 12 largest banks listed on the NSE.

Only banking stocks that are allowed to trade in F&O segment are eligible to be constituent of the Index. Currently, the index has 83.3% exposure to private banks and ~11.7% exposure to PSU banks, the statement said.

Why Banking Sector?

Banking is the life blood of the financial sector. Its importance in our economy has been growing consistently as we see the long term shift to financialization of household assets and greater demand for financial products.

The weight of Banking in the Indian markets has been going up steadily over the last decade and it is now the largest sector in the key equity market benchmarks such as Nifty 50. Even in recent quarters, banking sector has shown resilience despite the pandemic.

Given the scale and the added thrust that the government and regulatory bodies are providing to the banks, the sector is poised for a revolution. Banks are increasingly funding to retail masses and offering services backed by technology that are increasing their potential to scale business.

Why ETF?

Apart from being cost effective, ETFs let investors invest at real-time prices as opposed to end of day price by sector funds. It protects their investments from the inflows and outflows of short-term investors. Furthermore, ETFs are best suited to earn asset-class linked performance and is touted to be one of the most flexible tools for gaining instant exposure to the markets, thereby equitizing cash.

Commenting on the NFO, Chandresh Kumar Nigam, MD & CEO, Axis AMC said, “As a responsible fund house, Axis MF understands the need to offer a complete bouquet of offerings to investors. We want to develop, introduce and provide the products that are relevant in the current context. Accordingly, we recognize the need to offer investors a choice of strategies including robust passive products. The launch of Axis Banking ETF is a part of that endeavour and we expect to take a number of initiatives to build up our passive product suite over time.”

The new fund offers (NFO) will be open for subscription from October 16, 2020 to October 29, 2020.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Mutual Fund NFO October 2020: Benefit of FMP and ETF rolled into one – Check details
25 tips to build a highly diversified mutual fund portfolio
3L&T Investment Management launches debt scheme