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Axis Mutual Fund is launching a new fund offer (NFO) for an equity fund which will invest in stocks following the ‘special situations theme’. Axis Special Situations Fund NFO opens on December 4 and will close on December 18. 

What is a ‘Special Situations’ fund?

Special Situations Funds are mutual funds where the fund manager acts on specific incidents. If the fund manager finds a special situation that may be worthy of generating alpha(returns), he or she will invest in that company. 

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Special opportunities or situations can either be a global event, a national event, any macro or microeconomic issues, and it also could an internal situation within the company. 

For example, say a high-level executive has decided to leave the company, and the share price of the company falls to a great extent. A special situation fund’s fund manager may find want to take advantage of this situation and invest in this company. The fund manager may take such a decision knowing that the company fundamentals are strong enough to generate alpha in future.

More instances of special situations are:

  • Mergers and acquisition
  • Management restructuring
  • Refurbished product lines
  • New entries or exits from the industry
  • Policy changes
  • Economic changes (macro and micro)

Investment Strategy

The scheme will aim to generate long-term capital appreciation by investing in stocks depending on special situations. We discussed a few examples of possible special situations above. 

Indicative Asset Allocation of The Fund

Instruments Indicative Allocation (% of net assets) Risk Profile
Minimum Maximum High/Medium/Low
Equity & Equity related instruments of special situations theme. 80 100 High
Other Equity & Equity related instruments 0 20 High
Debt and Money Market Instruments 0 20 Low to Medium 
Units issued by REITs & InvITs 0 10 Medium to High

Benchmark

The scheme will benchmark its performance against the Nifty 500 TRI index. The index represents the top 500 companies.

Fund Details

The mutual fund has direct and regular plans. Investors can opt for growth or dividend options. Under the dividend option, you can choose for dividend payout and dividend reinvestment facility.

Other details of the fund are as follows:

Name of the Fund Axis Special Situations Fund
Type of Scheme An open-ended equity scheme investing in companies based on special situations.
Benchmark Nifty 500 TRI Index
NFO Dates Opens on December 4, 2020, and closes on December 18, 2020
Fund Manager Ashish Naik, Hitesh Das
Minimum Application Amount/Minimum Purchase Amount (including switches) Rs. 5,000 and in multiples of Re. 1 after that
Minimum Additional Investment (including switches) Rs 100 and in multiples of Re 1 after that
Minimum Redemption Amount Nil
Entry Load Nil
Exit Load Redemption before 12 months:

Nil: For 10% of the investment

1%: For the remaining investment

Redemption after 12 months: Nil

Plans Regular Plan and Direct Plan
Options Growth and Dividend Option (Payout, Dividend Reinvestment Option)

SIP

Frequency Minimum Installment Minimum Amount
Monthly 6 Rs 1,000 and in multiples of Re 1
Yearly 3 Rs 12,000 and in multiples of Re 1

Fund Managers

Ashish Naik: Mr Naik will be managing the equity portion of the fund.  He has a 10-year work experience. In his last stint, he worked as an equity analyst with Axis AMC itself. 

  • Axis Regular Saver Fund (Along with Mr Devang Shah)
  • Axis Triple Advantage Fund (Along with Mr R. Sivakumar)
  • Axis Equity Hybrid Fund (Along with Mr R. Sivakumar)
  • Axis Children’s Gift Fund (along with Mr R. Sivakumar)
  • Axis Capital Builder Fund – Series 1
  • Axis Nifty ETF
  • Axis Nifty 100 Index Fund
  • Axis Banking ETF
  • Axis Special Situation Fund

Hitesh Das: Mr Das is the designated fund manager for overseas securities. He has worked as a risk analyst and an equity research analyst with various organisations.

  • Axis Growth Opportunities Fund (along with Jinesh Gopani)
  • Axis ESG Equity Fund (Along with Mr Jinesh Gopani)

Happy Investing!

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Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.