Axis Consumption Fund NFO Review : Subscription to the new equity scheme of Axis Mutual Fund has opened today i.e. 23 August 2024. Axis Consumption Fund is an open-ended theme based equity scheme, whose last date for subscription in New Fund Offer (NFO) is 6 September 2024. This is an equity mutual fund, through which investments will be made in the shares of companies which are expected to benefit from India’s rapidly growing consumer market.
Investment strategy
The theme of Axis Consumption Fund covers more than 8 sectors and 70 basic industries, due to which the base of this fund is expected to be quite diversified. The sectors in which special emphasis will be given to investment through this fund include sectors like FMCG, automobiles and auto components, premium and electric vehicles, consumer durables, premium equipment and electronics, telecom, e-commerce, digital services, health care and medical services, real estate and housing. Through this fund, investments can be made in companies of all types of market capitalization including large cap, mid cap and small-cap of these sectors.
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Manager of Axis Consumption Fund
Axis Consumption Fund is an actively managed scheme. This means that investment decisions will be taken by fund managers Shreyans Dewalkar and Hitesh Das. Shreyans has 19 years of experience managing different funds. He has been managing Axis BlueChip Fund since 2016. Hitesh Das also has 12 years of experience in fund management.
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What is the growth expectation on investment in NFO
Axis Consumption Fund The fund will invest in a range of consumption-related sectors, thereby reducing sector-specific risk. The benchmark index of the scheme is the Nifty India Consumption Index (Nifty India Consumption TRI). Historical data shows that this consumption-based index performs better than the broader market index during market downturns. For instance, during the 2009 global financial crisis, the Nifty India Consumption TRI fell by 52.3%, while the Nifty 500 fell by 64.3%. Similarly, during the Covid-19 pandemic in March 2020, the Nifty India Consumption Index fell by 32.4%, while the Nifty 500 fell by 38.3%. However, the performance of both the indices has been almost the same in the last 5 years. During 15 August 2019 to 15 August 2024, the Nifty 500 index has given a return of 20.4% and the Nifty India Consumption index has given a return of 20.6%.
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Opportunity for long term wealth creation: Ashish Gupta
Ashish Gupta, Chief Investment Officer, Axis AMC, while giving information about the theme of this fund said, “The rapidly changing consumption pattern in India is an important part of our country’s development journey. As the aspirations of our population are rising and the spending capacity is increasing, companies in this sector are getting ready for rapid growth. Axis Consumption Fund will give investors an opportunity to participate in this emerging trend. The fund aims to take advantage of this dynamic growth by creating a strong portfolio. This fund will work to help investors benefit from India’s economic transformation by predicting current consumption trends as well as future growth factors. This thematic approach can provide long term wealth creation opportunities by aligning with the fundamental factors of the country’s progress.”
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Who should invest in NFO?
The NFO of Axis Consumption Fund can prove to be a better option for those investors who want to invest for the long term. The consumption theme of this fund focuses on India’s long term growth story, so the investment horizon of investors should be at least 5 years or more. Especially those investors who want to benefit by investing in the growth of India’s consumer market can consider this fund. Being a thematic equity fund, the market risk in it is high. On the riskometer, this scheme has been placed in the “High risk category”. Obviously, only those investors should invest in it who have the ability to take risks. Systematic Investment Plan (SIP) is considered a better way to invest in equity mutual funds.
Key highlights of Axis Consumption Fund NFO
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Category: Thematic
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Benchmarks:NIFTY India Consumption TRI
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Investment Horizon:5+ years
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Fund Managers: Hitesh Das, Shreyans Dewalkar,Krishna Narayan
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NFO Opening Date:23 August 2024
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NFO Closing Date:6 September 2024
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Minimum Application Amount:Rs 100
Exit Load:
On redemption/switch out within 12 months of allotment:Upto 10% investment: Nil, On investment above that: 1%,
On redemption/switch out after 12 months of allotment:Nothing (Nil)
(Disclaimer: Investment in mutual funds is directly affected by the fluctuations in the stock market. Our aim is not to advise investing in any fund, but only to provide information. Take any investment decision only after consulting your investment advisor.)
