Axis MF Launches New Fund to Tap Into Consumption Trends
Aug 24, 2024
Axis Mutual Fund has launched Axis Consumption Fund
It is an open-ended equity scheme following consumption theme.
India is one of the largest and fastest-growing consumer markets in the world, presenting significant opportunities for growth. The future of the Indian Fast-Moving Consumer Goods (FMCG) sector looks bright, driven by a growing middle class, rapid urbanization, and a youthful population with increasing spending power.
Sector-oriented mutual funds focused on India’s consumption story, typically invest in a range of stocks within the FMCG sector, providing investors with access to a broad portfolio of companies involved in the manufacturing, distribution, and retail of consumer products.
This NFO is an actively managed sectoral fund, that aims to benefit from the growth potential of India’s Consumer Market.
[Read: Best FMCG Mutual Funds: SBI Consumption Opportunities Fund vs. Mirae Asset Great Consumer Fund]
The investment objective of the Scheme is to provide long term capital appreciation from an actively managed portfolio of equity and equity related securities of companies engaged in consumption and consumption related sector or allied sectors. There is no assurance that the investment objective of the Scheme will be achieved.
Under normal circumstances, Axis Consumption Fund will hold an allocation of 80% to 100% in Equity & Equity related instruments of companies engaged in consumption and consumption related sector or allied sector, 0% to 20% in Other Equity & Equity Related Instruments, 0% to 20% in Debt & Money Market Instruments and 0% to 10% in Units issued by REITs & InVITs
Axis Consumption Fund aims to provide long-term capital growth from an actively managed diversified portfolio of equity & equity related securities of companies engaged in consumption and consumption related sector or allied sectors. The indicative list of sectors that the scheme would invest in:
The Scheme will invest across market capitalization. The fund manager will endeavor to allocate to companies using a bottom up approach while taking exposure in sectors which will benefit from the economic trends in consumption.
Axis Consumption Fund is benchmarked against the Nifty India Consumption TRI.
Axis Consumption Fund will be managed by Mr Shreyash Devalkar, Mr Hitesh Das, Ms Krishnaa Narayan for overseas securities.
Axis Consumption Fund is open for subscription from August 23, 2024 to September 06, 2024. The fund will reopen for continuous sale and repurchase within five business days from the date of allotment.
The minimum subscription amount is Rs 100/- and in multiples of Re. 1 thereafter.
The fund offers Direct Plan and Regular Plan. Under each plan the fund offers Growth option and Income Distribution cum Capital Withdrawal.