Asset management company, Axis Mutual Fund, has announced the launch of Axis Equity ETFs FoF, an open-end fund of funds that will invest primarily in shares of domestic exchange-traded funds.
The new fund offering (NFO) will be opened for subscription on February 4 and closed on February 18. The program will track the benchmark Nifty 500 Total Return Index (TRI) and seek to generate alpha by investing in domestic equity ETFs based on the fund manager’s top-down investment view.
ETFs are one of the most popular vehicles for investing in passive strategies because they replicate the portfolio of the underlying index while trading small units on an exchange at market-determined prices.
In three years, assets under management (AUM) of equity ETFs have more than tripled.
According to the fund house, because different sectors and market segments perform differently at different times, Axis Equity ETFs FoF’s investment approach has been designed to dynamically allocate across market capitalization and strategies. sector or thematic liabilities.
This allows investors to benefit from risk diversification by spreading across multiple equity ETFs. In addition, the program will seek to invest in and maintain exposure to domestic ETFs in excess of 95% of net assets at all times.
Chandresh Nigam, Managing Director and CEO of Axis AMC, said: “Effective, low-cost passive investing strategies that track a specific index as closely as possible while drawing on the broader wisdom of the market, have been one of the main reasons for its increased importance. among investors. The new program’s approach aligns with our ‘responsible investing’ philosophy and we believe it will be a notable addition to our product portfolio.”
The new fund will be managed by Shreyash Devalkar. The minimum request amount is ₹5,000 and investors can invest in Re 1 multiples, thereafter. There will be a 1% exit charge for up to 15 days from the date of award, and zero thereafter.
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