Axis Mutual Fund Launches New Fund Offer: Axis Mutual Fund has launched a new value index fund. This new fund offering (NFO), named Axis Nifty 500 Value 50 Index Fund, is an open-ended index fund that tracks the Nifty 500 Value 50 Total Return Index (Nifty 500 Value 50 TRI). Will track. Subscription in NFO of Axis Mutual Fund will open on 4 October 2024 and close on 18 October 2024. In this new fund offer, investors can start investing with a minimum of Rs 100. This fund invests through value index in those companies which are available at low valuations. This NFO may be suitable for those investors who want to create wealth in the long term and are interested in value investing.
Important points about Axis Mutual Fund NFO
– Category: Open-Ended Index Fund
– Subscription window: 4 October to 18 October 2024
– Benchmark: Nifty 500 Value 50 TRI
– Fund Managers: Karthik Kumar and Hitesh Das
– Risk Level: Very High
– Minimum investment: Rs 100 and thereafter in multiples of Re 1
– Exit Load:
– On redemption or switch out within 15 days: 0.25%
– After 15 days: Nothing
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value investing investment strategy
Value investing is a type of factor investing in which stocks are selected which are available at lower valuations. Axis Nifty500 Value 50 Index Fund aims to invest in stocks included in the Nifty 500 Value 50 index. This index includes shares of those companies which are considered value stocks on the basis of metrics like P/E, P/B, P/S and dividend yield. Axis AMC MD and CEO B. Gopkumar, speaking on the occasion of this NFO launch, said, “Our objective has always been to provide innovative and investor-centric solutions to investors. This fund is based on a value strategy, which allows investors to invest in a good portfolio at low cost. “Gives opportunities.”
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For whom is this investment right?
– Long-term investors who want to invest in companies with true value.
– Experienced investors who want to add a passive investment strategy to their portfolio.
– Investors who want to invest in a well-diversified portfolio at low cost.
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Benefits of investing in this NFO
1. Low cost: This is a passive fund, investing in which will cost less than active funds.
2. Diversification: There will be a mix of large cap, mid cap and small cap stocks in this NFO, which will give investors exposure to a diversified portfolio.
3. Wealth Creation: The benchmark index of this fund has outperformed Nifty 500 over time. Therefore, in the long term this fund can prove helpful in wealth creation.
4. Smart Strategy: This will be a factor-based fund that will invest in stocks with lower valuations, which will have higher chances of profits in the future.
Ashish Gupta, Chief Investment Officer, Axis AMC, said, “Factor-based investing is growing rapidly, its size has increased from Rs 300 crore to Rs 30,000 crore in the last 4 years. Under value investing, investors are allowed to invest in companies that “There are opportunities to do things that are attractive in terms of valuation.”
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risk factor
1. Tracking Error: This is an index fund, in which there is always a risk of tracking error. If this error is large, the performance of the fund may differ from the benchmark index.
2. Weightage of PSU stocks: PSU stocks have a large share in the Nifty 500 Value 50 index, which may cause underperformance from time to time.
3. Short-term volatility: Value stocks may fluctuate in the short term, due to which investors may have to exercise some patience in the short term.
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Make investment decisions carefully
Axis Nifty500 Value 50 Index Fund is a good option for those investors who want to invest in high value stocks at low prices. This fund provides an opportunity for wealth creation in the long term. Also, it can be an ideal option for those interested in value-based investing. However, investors should keep in mind that this fund may face volatility in the short term and there is also a risk of tracking errors. Also, being an equity fund, there is always market risk in it. It should also be kept in mind that the past performance of the benchmark index cannot guarantee similar returns in the future.
(Disclaimer: The purpose of this article is only to provide information, not to advise investment in any fund. Investments made in equity mutual funds are directly affected by the ups and downs of the stock market. Any investment decision should be taken by your investment advisor. Do it only after taking the opinion of.)
