Axis Growth Opportunities Fund has opened for subscription on 1st October 2018 and will stay open till 15th October, 2018. This is an open-ended fund which is investing in both domestic as well as foreign capital markets.
|Axis Growth Opportunities Fund|
|NFO Launch Date||1 October 2018|
|Last Date for Application||15 October 2018|
|Minimum Investment Amount||₹ 5000|
|Fund Type||Global Diversification Fund|
In this article
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2.Decide the amount you would like to invest in Axis Growth Opportunities Fund
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Investment objective of Axis Growth Opportunities Fund
The investment objective of this fund is to generate long-term capital appreciation by investing in a diversified portfolio of equity & equity related instruments both in India as well as overseas.
Benchmark of Axis Growth Opportunities Fund
The benchmark of this fund is S&P BSE 200. This benchmark index does not consist of any foreign equity scrips.
Taking this index as the benchmark may be a cause for concern as it is not a true indicator of potential fund’s returns.
The 1 year, 3 year and 5-year returns of the S&P BSE 200 Index are 17.75 %, 15.90, and 20%.
Top 5 equity scrips of this index are Reliance Industries, ITC, HDFC Bank, Housing Development Finance Corporation and Infosys.
Axis Growth Opportunities Fund is a fund that offers diversification by investing in both domestic as well as foreign securities.
This fund gives an opportunity to investors to invest in foreign scrips through this fund.
Asset Management Companies offering these type of funds have very professional fund management team who have the knowledge and expertise of managing scrips.
Axis AMC’s foreign partner, Schroder Investment will suggest overseas allocation strategy to invest in international scrips.
Overseas investment philosophy is aligned with domestic fund house’s philosophy of bottom-up investing in high-quality scrips with high growth prospects.
The target of the portfolio is to make sustainable long-term performance while keeping risk at a minimum.
The highly experienced fund management team at Axis mutual fund house & recommendations from its foreign partner might make the philosophy work.
Fund House’s Rationale
India’s equity market cap is about 3 % to 4 % of the global market cap, showing that domestic mutual fund investors do not have exposure to 97 % of the world’s equity investment opportunities.
This scheme plans to give global diversification to Indian investors by participating in equity and equity related instruments both in our country as well as in foreign countries.
Chandresh Kumar Nigam, MD & CEO, Axis AMC said that if domestic investors are the consumers of multiple global brands in their day to day lives, then they should be given access to grow by investing in international equities.
The Options for Investment
- Axis Growth Opportunities Fund (Growth Option)
- Axis Growth Opportunities Fund (Dividend Option)
Axis Growth Opportunities Fund opened for subscription on 1st October 2018 and will stay open till 15th October 2018. This open-ended funded will invest not in just domestic markets but in foreign markets as well.
The fund manager is Jinesh Gopani.
Mr. Jinesh Gopani has been a fund manager of equity at Axis Mutual Fund house since April 1, 2011.
He has also served as an assistant fund manager of equity at the Axis AMC from 2009 to 2011.
He comes with a total experience of thirteen years in the stock market, of which four years are in equity fund management. Previously, Mr. Gopani has also worked as a portfolio manager at Birla Sun Life mutual fund house.
- This new diversified equity fund will invest between 30% to 35% of its assets in large cap equities.
- This fund will invest up to 35% in foreign equities with a focus on large-cap stocks.
- This fund will invest between 35% to 40% of scheme assets in domestic mid-cap stocks.
|Instrument||Minimum Allocation||Maximum Allocation||Risk Profile|
|Equity & equity related instruments of large cap companies in the domestic market||30 %||35 %||Moderately High|
|Equity & equity related instruments of companies in the foreign market with a focus on large cap stocks||0 %||35 %||High|
|Equity & equity related instruments of large cap companies in the domestic market||35%||40%||High|
An exit load of 1% will be charged if redeemed or switched from this fund to some other fund on or before 12 months from the date of allotment.
So, no exit load will be charged for redemption post one year from the date of investment.
Who Should Invest?
This product is ideal for investors who are looking for:
- Capital appreciation over the long-term
- Investment in a diversified portfolio mainly consists of equity and equity related instruments both in India, as well as in the overseas market.
Schemes that invest at least 65 % in domestic stocks and the rest in foreign stocks are classified as equity funds.
This means that as a pure domestic equity fund, they are subjected to 10% long-term capital gains tax, over capital gains of Rs.1 lakh in a financial year.
Also Read: Parag Parikh Long-Term Equity Fund Review
Risk-averse investors should stay away from this fund as it is an equity fund.
Also, this fund invests in foreign securities which makes it more diverse.
Depreciation of rupee will also play an important role while investing in foreign securities. Also, this fund gives the Indian investors an opportunity to invest in foreign markets.
Moreover, investors while investing in this fund should also note that investment is being made in large and mid-cap stocks in the domestic market and they should take into consideration their risk appetite before investing in this fund.
Disclaimer: The views expressed in this post are that of the author and not those of Grow