Axis Mutual Fund launches Axis Equity ETFs FoF

Axis Mutual Fund launches ‘Axis Equity ETFs FoF’

(An Open Ended Fund of Fund scheme predominantly investingin units of domestic equity ETFs)

Highlights:

• Category: An Open Ended Fund of Fund scheme predominantly investingin units of domestic equity ETFs


• Benchmark: Nifty 500 TRI


• Fund Manager: Shreyash Devalkar, Fund Manager


• NFO open date: 4^th February,2022


• NFO close date: 18^th February, 2022


• Minimum Application Amount: INR 5,000 and in multiples of INR 1/- thereafter


• Exit Load: 1% for 15 days, Nil thereafter

Mumbai, February 02, 2022: Axis Mutual Fund, one of the leading asset management companies in India announced the launch of Axis Equity ETFs FoF (An Open Ended Fund of Fund scheme predominantly investing in units of domestic equity ETFs). The new fund will be managed by Shreyash Devalkar, Fund Manager. The minimum application amount is INR 5,000 and investors can invest in multiples of INR 1, thereafter. The new fund will track the Nifty 500 TRI benchmark and endeavour to generate alpha by investing in domestic equity ETFs basis the fund manager’s top down investment view.

ETFs are one of the most popular vehicles of investing in passive strategies as they replicate the portfolio of the underlying index while trading in bite sized units on an exchange at market determined prices. In 3 years, equity ETFs’ AUM has increased to more than 3x. Yet, investors often find it difficult to choose the right ETF; which will help gain potential alpha while maintaining the necessary diversification.

Since different sectors and market segments perform differently at different times, Axis Equity ETFs FoF’s investment approach is specifically designed to allocate dynamically across market cap and sectoral/thematic passive strategies. This allows investors the benefit of risk diversification by allocating across multiple equity ETFs. Furthermore, the scheme will endeavour to invest and maintain domestic ETF exposure greater than 95% of net assets at all times. The resulting tax treatment will be that of equity mutual funds. In addition to exposure to all equity ETFs in the market, Axis Equity ETFs FoFremoves the risk of security selection while aiming for minimal tracking error. Given the mutual fund structure, investors can look to invest through various systematic options like SIPs, STP’s & lumpsum investments.

Chandresh Nigam, MD & CEO, Axis AMC said, “Passive investing’s efficient low cost strategies that tracks a specific index as closely as possible while relying on the broader market wisdom, have been some of the major reasons for its increased importance amongst the investors. With the launch of the Axis Equity ETFs FoF, we are seamlessly integrating market cap management and sectoral/thematic management, thereby enabling active management of passive strategies. The new scheme’s approach aligns with our philosophy of ‘Responsible Investing’ and we believe, will be a notable addition to our portfolio of products.”

The NFO will be open for subscription on February 4, 2022 and close on February 18, 2022.

Sources: AMFI, Axis AMC Research data as on 31^st December 2021 (Includes domestic Equity ETFs as recognized by AMFI)

Product Labelling:

*Investors should consult their financial advisors if in doubt about whether the product is suitable for them. (The product labelling assigned during the New Fund Offer is based on internal assessment of the Scheme Characteristics or the model portfolio and the same may vary post NFO when actual investments are made)

Note: Investors will be bearing the recurring expenses of the scheme in addition to the expenses of other schemes in which Fund of Funds scheme makes investment

About Axis AMC: Axis AMC is one of India`s fastest growing assets managers offering a comprehensive bouquet of asset management products across mutual funds, portfolio management services and alternative investments.

Disclaimer: This press release represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC). Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time.

The information set out above is included for general information purposes only and does not constitute legal or tax advice. In view of the individual nature of the tax consequences, each investor is advised to consult his or her own tax consultant with respect to specific tax implications arising out of their participation in the Scheme. Income Tax benefits to the mutual fund & to the unit holder is in accordance with the prevailing tax laws as certified by the mutual funds consultant. Any action taken by you on the basis of the information contained herein is your responsibility alone. Axis Mutual Fund will not be liable in any manner for the consequences of such action taken by you. The information contained herein is not intended as an offer or solicitation for the purchase and sales of any schemes of Axis Mutual Fund.

Past performance may or may not be sustained in the future.

Stock(s)/Issuer(s)/ Top stocks mentioned above are for illustration purpose and should not be construed as recommendation.