Axis Mutual Fund launches new scheme, start with Rs 5000

It is an open-ended index fund. The NFO has opened for subscription on February 21 and can be invested in it till March 7.

The fund will choose the most liquid smallcap by daily average turnover over a period of 6 months.

mutual fund (Mutual FundA new fund has been launched for the investors looking for new investment opportunities. Axis Mutual Fund ,Axis Mutual Fund) has launched Axis Nifty Smallcap 50 Index Fund. It is an open-ended index fund which means you can exit at any time. It will track the Nifty Smallcap 50 Index. New Fund Offer (NFO) has opened for subscription on 21st February. One can invest in it till March 7. In this, investors can invest a minimum of Rs 5,000 and thereafter in multiples of Rs 1.

Nifty Smallcap 50 Index represents the top 50 companies selected on the basis of average daily turnover from the top 100 companies in the Nifty Smallcap 250 Index, selected on the basis of the entire market cap. This index is calculated using the free float market capitalization method.

According to the company, the fund will choose the most liquid smallcap by daily average turnover over a period of 6 months. In addition, companies with large floats will be assigned higher weights and securities will be excluded if the stock falls below 130th rank based on full market cap.

You can invest through SIP

Investors can opt for systematic options like Systematic Investment Plan (SIP), Systematic Transfer Plan (STP) or can also invest through lump sum. Investors can invest in this scheme in a minimum amount of Rs.5,000 and thereafter in multiples of Re.1.

Chandresh Nigam, MD & CEO, Axis MMC said, “When it comes to smallcap companies, only good quality companies have been able to perform. With the introduction of Axis Nifty Smallcap 50 Index Fund, we expect to drive the alpha for our investors by maintaining focus on quality, scalability and stability in the portfolio. This is in line with our belief of offering quality products to investors that suit their risk appetite and need to create wealth creation opportunities for long term.

Let us inform you that earlier this month Axis Mutual Fund launched Axis Equity ETF FoF. ETFs are one of the most popular options for investing in passive strategies. The AUM of equity ETFs has grown more than three times in the last three years. Different sectors and market segments perform differently at any given point of time in the market. Therefore, it has been designed in such a way that it can pass on the benefits of the boom of various sectors to the investors.

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