Axis Mutual Fund launches Axis Business Cycles Fund

Highlights: -

• An open ended equity scheme following business cycles based investing theme


• Investment Objective: To provide long term capital appreciation by investing predominantly in equity and equity related securities with a focus on riding business cycles through dynamic allocation between various sectors and stocks at different stages of business cycles in the economy


• Benchmark: NIFTY 500 TRI


• Minimum Investment: Rs.5,000 and in multiples of Rs. 1/- thereafter


• NFO Period: February 02, 2023 to February 16, 2023


• Exit Load: If redeemed/switched out within 12 months from the date of allotment:


• For 10% of the investment – Nil


• For remaining investment – 1%

If redeemed/switched out after 12 months from the date of allotment: Nil

Mumbai, January 30, 2023: Axis Mutual Fund, one amongst the fastest growing fund houses in India, announced the launch of their new fund offer –Axis Business Cycles Fund, an open ended equity scheme following business cycles based investing theme. The NFO opens on 2^nd February 2023 and closes on 16^th February, 2023. The scheme will be managed by Mr. Ashish Naik. The new fund will track the NIFTY 500 TRI and the minimum investment amount would be Rs. 5000 and in multiples of Rs. 1/- thereafter.

Understanding Business Cycle Investing

A cycle is a function of demand and supply. Basic business economics teaches us, whenever the supply is higher, prices will go down and when the demand is higher, the prices will go up. Such movement is what creates a cycle, and this can be found across smallest of businesses to the largest of them. We believe there are four primary phases of the business cycle being expansion, peak, slowdown, and trough. Every economy, and by extension, business goes through these phases. How long a phase will last, or when it will move into the next phase is uncertain.

So, if one can identify cycles right, therein lies an investment opportunity. Identifying a business cycle is very much an art of identifying several indicators and then, framing a coherent investment opinion. For this there exist a plethora of data points and indicators. Our job is to cut through the noise and use only those indicators that best represent both the health of the economy and the underlying investment thesis.

Why a business cycles fund now?

The domestic economy is in an interesting phase right now. The onset of the Covid 19 pandemic made matters more challenging amid the NBFC crisis pre-pandemic. However, things have started to look up in the post-Covid phase as we stand at the cusp of a new capex cycle. Balance sheets have strengthened across large companies, domestic demand is robust, there is increased focus on PLI schemes which can boost capacity addition, and there is widespread digitalization offering a strong impetus to the economy.

This may be indicative of us being in nascent stages of expansion. If Consumption was the primary driver for economic growth in the last decade, investment led by capex and manufacturing could also be a growth driver for this decade. In such a growth environment both B2C that is Consumption led businesses as well as B2B sectors which are more cyclical can do well potentially.

So, how will the Axis Business Cycles Fund work?

The fund will have a cycle-driven portfolio. In expansionary times, we would focus on building a cyclical sector-based portfolio of companies which would benefit from an impending favorable upcycle. During slowdowns, or uncertain times, the portfolio would tilt to counter cyclical themes or companies that would be in a better position to navigate tough times.

Contrary to the bottom up approach to investing, this fund will employ a hybrid approach to investing. A top down approach to identify economic trends and {more importantly choose sectors ideally suited to benefit from their business upcycles} and then, use a bottom up approach to identify particular stocks who would thrive above the rest within the identified sector.

Further, the fund will follow a dynamic approach with no market bias.

It will have the flexibility to be more aggressive in terms of overweight and underweight across sectors. It means that when we find an opportunity in a sector, we will try to build a bigger position in that sector showing our high conviction. Equally important would be to try to cut our weightages as the investment story plays out, and we move onto the next sector with an imminent favorable upcycle.

On the launch of the NFO, Mr. Chandresh Nigam, MD & CEO, Axis AMC, said “If one were to assess India’s growth through a ‘Business Cycle’ lens, we are currently at an interesting position, between the Expansion and Peak phase. Multiple drivers are beginning to fall in place for investment cycle pick up in India. Axis Business Cycles’ unique hybrid investment approach (mix of Top Down and Bottom Up) follows the Quality style of investing and offers no market cap bias to investors. As a fund house that believes in leveraging market opportunities in a disciplined manner, we believe that the Axis Business Cycles Fund will be a notable add on in an investor’s portfolio.”

Some key attributes of the fund include

• Hybrid approach: Mix of Top Down and Bottom Up


• Flexibility for a more aggressive stance in terms of sector over/ under weight


• No market cap bias


• Style – Quality focused

Source: Axis MF Research, Bloomberg, Morgan Stanley (As on 31^st Dec, 2022)

Product Labelling:

*Investors should consult their financial advisers 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 model portfolio and the same may vary post NFO when actual investments are made.

Axis Business Cycles Fund is not a capital protection or guarantees returns scheme. Please refer to SID for detailed Investment Strategy and other scheme related features.

Please refer SID, for detail Asset Allocation & Investment strategy of the Scheme uploaded on the website (www.axismf.com) 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. Visit www.axismf.com for more information.

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.