Axis Mutual Fund to Launch Axis Momentum Fund

Axis Mutual Fund is ready to introduce a new equity scheme to the market, the Axis Momentum Fund, targeting investors wanting to focus on long-term capital growth. This open-ended equity scheme follows the momentum investing theme, focusing on companies that show strong and sustainable upward trends in their stock performance.

Details of the NFO

The new fund offer (NFO) for Axis Momentum Fund will open for subscription on November 22, 2024, and close on December 6, 2024. The scheme requires a minimum application amount of Rs.100, with subsequent investments allowed in multiples of Re.1.

Investment Strategy

The Axis Momentum Fund will build a diversified portfolio of equity and equity-related securities through active management. The investment process will be guided by a quantitative model, selecting stocks based on parameters that maximize momentum exposure. This strategy will make sure the portfolio primarily includes companies with good performance trends, aligning with the momentum investing philosophy.

Benchmark & Fund Management

The scheme will be benchmarked against the Nifty 500 TRI, providing a broad comparison to the performance of India’s top 500 companies. It will be managed by Karthik Kumar and Mayank Hyanki, two experienced fund managers from Axis Mutual Fund known for their expertise in equity strategies.

Why Momentum Investing?

Momentum investing capitalizes on market trends by investing in stocks that have performed well recently and are expected to continue their upward trajectory. This approach can help capture short- to medium-term opportunities in the market while maintaining long-term growth objectives.

Conclusion: The Axis Momentum Fund is a thematic offering for investors looking to leverage momentum-driven equity strategies. With its quantitative stock selection model, seasoned fund managers, and alignment with the Nifty 500 TRI, the scheme offers a structured approach to tap into growth opportunities. Potential investors should consider their risk appetite and consult financial advisors before investing, as the performance of momentum-based funds can vary based on market conditions.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.