The Axis Mutual India Manufacturing Fund, an open-ended equity strategy that embodies the Indian manufacturing concept, was recently launched by Axis Mutual Fund.
The public subscription period for the program began on December 1, 2023, and it will end on December 15, 2023. Following the date of allotment, the plan reopens for continuous sale and buyback in five business days.
What kind of investment plan is this?
This open-ended equity plan embodies the idea of Indian manufacturing. This item is appropriate for those looking to invest
- Long-term capital growth
- An equity strategy that makes investments in Indian stocks and securities linked to stocks of manufacturing-related enterprises.
What is the primary reason for making an investment in this fund?
The principal aim of the program is to generate long-term capital appreciation through the acquisition of equity and equity-related securities of manufacturing-related enterprises. Nevertheless, there is no guarantee or assurance that the scheme’s investment goal will be met. Any returns are not guaranteed or assured by the plan.
How does this strategy allow for investment?
Under the scheme, investors can make multiples of Re 1 and a minimum investment of ₹500 per plan/option. Investments have no upper limit.
How will the program measure its effectiveness?
The NIFTY India Manufacturing TRI will be used as a benchmark for measuring the scheme’s performance.
The portfolio of the scheme will be diversified in terms of both market capitalization and sector, and it will not be dependent on market cap. The goal of the Nifty India Manufacturing index is to monitor the performance of Indian manufacturing sector equities. The Nifty Small Cap 50, Nifty Midcap 150, and Nifty 100 indexes are combined to pick the stocks. The free-float market capitalization of a stock determines its weight in the Nifty India Manufacturing index, with a 5% maximum weight allotted to each firm.
A minimum weight of 20% is also assigned to specific manufacturing sectors in the index. The index’s components provide the greatest feasible representation of the universe of the fund.Subject to SEBI norms and other widely accepted criteria, the Trustee/AMC retains the right, at any time, to modify the benchmark used to assess the Scheme’s performance while keeping in mind the Investment Objective of the Scheme and the suitability of the benchmark.
Does this scheme have any entry or exit loads?
There is no “Entry Load” in this plan, therefore investors can park their profits there without having to pay anything. This is how the “Exit Load” would be determined:
- If swapped out or redeemed within a year of the allocation date –
- For a 10% investment, nothing
- For the remaining sum invested: 1%
- If swapped out or redeemed more than a year after the date of allocation: Zero
Who is going to oversee this plan?
The scheme’s designated fund managers are Shreyash Devalkar and Nitin Arora.
Is there any inherent risk in the fund?
According to the information in the plan Information Document, the plan entails “Very High Risk” and is best suited for investors who are willing to accept that there is a very high risk to their money. If investors are unsure if the product is right for them, they should speak with their financial advisors.
