Axis Mutual Fund Launches Axis Nifty Bank Index Fund

Axis Mutual Fund launched a new open-ended index fund called Axis Nifty Bank Index Fund. This fund aims to track the total returns of the Nifty Bank TRI index, providing exposure to the leading Indian banks. The New Fund Offer (NFO) is open for subscription from May 3rd to May 17th, 2024. There is no entry load, but an exit load of 0.25% applies if redeemed or switched out within 7 days of investment. The minimum investment amount is Rs 500.

Investment Objective

The investment objective of the Axis Nifty Bank Index Fund is to provide returns before expenses that correspond to the total returns of the Nifty Bank TRI subject to tracking errors. However, there is no assurance that the investment objective of the Scheme will be achieved.

This NFO of Axis Nifty Bank Index Fund is suitable for investors who are seeking long-term wealth creation solution and to track returns by investing in a basket of Nifty Bank TRI stocks and aims to achieve returns of the stated index, subject to tracking error.

Risk-o-meter:

Funds Allocation

Benchmark

The performance of the Axis Nifty Bank Index Fund is benchmarked against the Nifty Bank TRI.

Fund Managers

Mr. Karthik Kumar is a fund manager with 10 years of experience. He holds an impressive educational background including an M.B.A from the Krannert School of Management at Purdue University (USA), a C.F.A (USA) certification, and a B.E (Mechanical) degree from Sardar Patel College of Engineering, Mumbai University.

Mr. Ashish Naik is a fund manager with 10 years of experience. He is qualified with a B.E Computers degree from Mumbai University, a PGDBM from XLRI, and an FRM (GARP) certification.

Peer Comparison

Data as of May 02, 2024.

Management Commentary

“India’s economic rise is a compelling narrative driven by several factors. If addressed effectively, our growth story has the potential to propel the nation towards becoming a major global economic power. Against this backdrop, India’s banking sector continues to exhibit growth and resilience,” remarked B. Gopkumar, MD & CEO, Axis AMC. “Fuelled by robust regulatory frameworks and the rapid adoption of digital banking, the sector is well-positioned for sustained expansion. The Axis Nifty Bank Index Fund offers investors a strategic opportunity to tap into this growth opportunity. The sector benefits from strong emphasis on innovation and adherence to the highest governance standards, thereby capitalizing on the transformative trends reshaping India’s banking landscape.”

“This fund is an interesting opportunity for investors to gain exposure to the banking sector, which is expected to play a pivotal role in India’s economic expansion,” explained Mr. Ashish Gupta, Chief Investment Officer at Axis AMC. “With increasing financial inclusion and a shift towards more sophisticated banking services, the sector can offer the potential for significant returns”.

Characteristics of Index Funds

• Tracks a market index, aiming to mirror its performance.
• Passively managed, with low fees compared to actively managed funds.
• Offers broad diversification across multiple companies and sectors.
• Targets long-term growth, matching the overall market’s returns.
• Generally, less volatile than individual stocks, but still susceptible to market risk.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.