Axis Mutual Fund on Wednesday announced the launch of Axis India Manufacturing Fund. It is an open-ended equity scheme that represents the Indian manufacturing theme and will be benchmarked against the Nifty India Manufacturing TRI. The NFO opens on December 1, and aims to enable investors to leverage the potential of India’s manufacturing theme, that is expected to grow in the coming years. The NFO will remain open until December 15. The scheme’s riskometer indicates that the principal invested carries high risk.
“The Axis India Manufacturing Fund arrives at a critical juncture where India’s economy is being fuelled by strategic initiatives like ‘Make in India’, and a spate of reforms,” said B. Gopkumar, MD & CEO, Axis AMC. “This thematic fund, is designed to capitalise on India’s growing momentum, focusing on sectors that stand to redefine India’s industrial contours. We invite investors to embrace the future with the Axis India Manufacturing Fund, a fund that's engineered to grow with India's manufacturing ambitions,” added Gopkumar.
If redeemed or switched out after 12 months from the date of allotment the exit load is nil. However, if redeemed or switched-out within 12 months from the date of allotment the exit load for 10% of investment is nil while for remaining investment it is 1%
The fund is set to encompass a wide spectrum of industries, from capital goods and consumer durables to textiles and pharmaceuticals, thus offering investors a comprehensive avenue to participate in India’s manufacturing success story. The fund will aim to identify companies across three segments of the Indian economy, which includes manufacturers investing in factory equipment and R&D to build production capacity, Consumption with rising demand trajectory due to domestic consumption and premiumisation narrative and net exports with focus on companies benefiting from India’s integration into the global supply chain.
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The fund will follow a bottom-up approach with a multi-cap stock selection strategy. In addition to adopting an active sectoral allocation and ‘Quality’ style of investing, the Axis India Manufacturing Fund would also be focusing on the under-represented segments of Indian listed markets.
"India is transitioning rapidly, thanks to significant government impetus, favourable policy frameworks, and its improved cost competitiveness to global peers," observed Ashish Gupta, Chief Investment Officer, Axis AMC. "With the Axis India Manufacturing Fund, we aim to curate a portfolio that not only reflects the theme’s robust growth potential but also actively contributes to our investors' wealth creation opportunities, positioning them to benefit from the companies that are set to be the vanguards of this industrial renaissance.”