Axis Mutual Fund is
coming out with a NFO in the form of Axis Value Fund.
Axis Value Fund as the
name suggests, would be a value fund.
The fund would be open
for subscription from September 02, 2021 to September 16, 2021.
NFO
details for Axis Value Fund
|
Scheme Opens |
02/09/2021 |
|
Scheme Closes |
16/09/2021 |
|
Fund Manager |
Mr. Jinesh Gopani Mr. Hitesh Das |
|
Benchmark |
S & P BSE 200
(TRI) |
|
Minimum Investment |
5,000 |
|
Fund Category |
Value |
|
Exit Load |
1% if redeemed
within a year |
Axis Value Fund would
be an open - ended value fund that would be predominantly following value
investing in equity and equity related instruments.
Axis
Value Fund Investment Objectives
The investment
objective of the fund is to attain long term growth while investing applying
predominantly a value style in equity and equity related instruments.
There is no guarantee
that the investment objectives of the scheme would be achieved.
Axis
Value Fund Allocation
The asset allocation
for the fund would be something like this
|
Asset Class |
Minimum % |
Maximum % |
|
Equity and Equity
Related instruments |
80 |
100 |
|
Debt and Money
market instruments |
0 |
20 |
|
Units issues by
REITS and InvITs |
0 |
10 |
The above figures are
only indicative and not fixed, the fund managers have the liberty to move
across the asset classes depending upon prevailing market conditions as long as
they remain within the mandate permitted.
The fund can also
invest in REITs and InvITs if so desired.
Axis
Value Fund Options
Axis Value mutual fund provides investors
with the following two options
Growth: This option is most suited for
investors who are not seeking dividends or who are not dependent on mutual fund
dividends as a source of monthly income and would rather see their capital
appreciate.
Income Distribution cum capital withdrawal: This option is most suited for investors who are seeking dividends or who are
dependent on mutual fund dividends as a source of monthly income and are not
looking for capital appreciation.
In case you do not opt for a particular
option between growth and income distribution cum capital withdrawal option
then the default option would be growth.
What is a Value
fund?
A value fund is one in which more
allocation is made towards stocks that are trading lower to their intrinsic
value.
In a value mutual fund, valuation is more
important than price.
There is no restriction with any caps so
value mutual funds can move anywhere as much as they like.
It invests in companies it feels are
presently very attractively prices but with strong fundamentals.
Unlike other equity mutual funds, a value
fund does not have a buy and hold strategy but rather a buy and sell strategy.
How does a value fund work?
A value fund is on the lookout for companies:
- That are going through a temporary difficult period and thereby trading at prices way below their intrinsic value.
- That are going through management changes.
- That are emerging and can be seen as challenging the status in the near future at trading at attractive valuations.
- That are trading at the bottom due to the cyclical nature of their business.
- The one common requisite for all companies though is that they need to be fundamentally strong.
Features of Axis
Value Fund
Ideal investment horizon of 3-5 years
Value investing strategy will be applied
across all caps.
Focus will be on portfolio risk and its
effective management.
The fund will target companies with a
strong management in place
How will Axis
value fund function?
Axis value fund will look out for companies
that:
Have a strong management in place.
Have already demonstrated strong earnings.
Have potential to continue strong earnings
in the future as well.
Have simple businesses that are easy to
understand.
Have little to no debt.
Axis Value Fund Portfolio
Axis value fund would be diversified across
all caps.
The diversification would be as described
below:
- Around 20 to 50% in mid and small cap stocks.
- 50 to 80% in large cap stocks.
- There would be no restriction with regards to sectors.
This is of course not fixed and is
dependent on the prevailing market conditions.
Who can invest in Axis Value Fund?
The following persons
are eligible and may apply for Subscription to the Unit(s) of the Scheme:
Resident adult
individuals either singly or jointly (not exceeding three) or on an Anyone or
Survivor basis;
Minor (as the first
and the sole holder only) through a natural guardian (i.e. father or mother, as
the case may be) or a court appointed legal guardian. There shall not be any
joint holding with minor investments;
Non-Resident Indians
(NRIs) / Persons of Indian origin (PIOs) / Overseas Citizen of India (OCI)
residing abroad on repatriation basis or on non-repatriation basis;
Such other category of
person(s) permitted to make investments and as may be specified by the AMC /
Trustee from time to time.
A contra or a value fund should never be
your first scheme when you start investing in mutual funds
Most investors look for value and contra
funds more out of fear of missing out on a mutual fund scheme rather than truly
being aware of whether these funds are adding anything new to their existing
portfolio.
Diversification is more about understanding
the functioning and purpose of a scheme rather than the number of schemes you
hold.
Do not invest in such schemes only because
you can, invest cause you know how they work and whether they would work for
your goals.
For portfolio enquiries, email us with your doubts at info@themutualfundguide.com
