Axis Mutual Fund Launches Axis Multicap Fund

Nov 26, 2021

Axis Mutual Fund has launched an open-ended equity scheme – Axis Multicap Fund.

The scheme will predominantly invest across large cap, mid cap & small cap stocks.

The primary investment objective of the scheme is to generate long term capital appreciation by investing in a diversified portfolio of equity and equity related instruments across market capitalization. However, there can be no assurance that the investment objective of the Scheme will be achieved.

Under normal circumstances, 75% to 100% of the funds portfolio will be invested in Equity & Equity related instruments of large, mid and small cap companies. The scheme will invest a minimum 25% and maximum 50% of total assets each in Large, Mid and Small Cap stocks.

It can also invest upto 25% of its assets in Debt and Money Market Instruments. It may also invest 0% to 10% of its net assets in Units issued by REITs and InVITs.

The investment strategy of Axis Multicap Fund as mentioned in the Scheme Information Document (SID) is as follows:

Being in the Multi Cap category, the Axis Multicap Fund has flexibility in terms of allocation across market cap. To ensure diversification of investment across market caps, the scheme will invest a minimum of 25% each in Large, Mid and Small Cap stocks, with the balance 25% flexibility to the fund manager.

Axis Multicap Fund aims to generate capital appreciation by investing in a diversified portfolio of equity & equity related instruments within a predefined construct of large caps, midcaps and smallcaps Indian capital markets offer a multitude of investment opportunities across the market cap spectrum.

The portfolio of companies will be identified using a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective. The allocation will be managed actively with an emphasis of identifying best ideas within each market cap bucket.

Axis Multicap Fund will aspire to capture potential opportunities throughout the lifecycle of the company’s progression from Small cap all the way to a Large cap. Through this approach the fund will aim to achieve a quality centric long term portfolio with an improved risk reward profile and controlling fund volatility typically faced during fund rebalancing.

The AMC employs a ""Fair value"" based research process to analyse the appreciation potential of each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The universe of stocks is carefully selected to include companies having a robust business models and enjoying sustainable competitive advantages as compared to their competitors. The scheme by utilizing a holistic risk management strategy will endeavor to manage risks associated with investing in equity markets.

The scheme has identified the following risks and designed risk management strategies, which are embedded in the investment process to manage these risks

  • Quality Risk - Risk of investing in unsustainable / weak companies.

  • Price Risk - Risk of overpaying for a company

  • Liquidity Risk - High Impact cost of entry and exit

  • Concentration risk - Invest across the market capitalization spectrum and industries/ sectors

  • Volatility Risk - Volatility in price due to company or portfolio specific factors

  • Event Risk - Price risk due to a company / sector specific or market event

Axis Multicap Fund’s performance will be benchmarked against Nifty 500 Multicap 50:25:25 TRI (Total Return Index).

Axis Multicap Fund will be managed by Mr Anupam Tiwari.

The NFO opens for subscription on November 26, 2021 and closes on December 10, 2021. The scheme will re-open for continuous Sale and Repurchase within five Business Days from the date of allotment of units under NFO.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth and Income Distribution cum Capital Withdrawal (IDCW) (Payout and Reinvestment facility).