Axis Mutual Fund on Tuesday announced the launch of their new fund offer (NFO) Axis Multicap Fund. The NFO is set to open on November 26 and will close on December 10, 2021. The fund will provide investors an opportunity to invest in large, mid, and small cap stocks.
The scheme will be managed by Anupam Tiwari and Sachin Jain, fund manager, Axis Asset Management Company (Axis AMC).
As per the SEBI regulation, multi cap funds need to have a minimum 25 per cent exposure under each market cap, ensuring that the portfolio is not overly concentrated towards a particular market cap.
“Due to its large and varied investment universe, multi cap funds offer the dual benefit of growth and risk-adjusted returns to the investors, making them one of the ideal solutions for long-term investment objectives and wealth creation,” Axis AMC said in a release.
It further added that large caps provide cushion during the tough market conditions, while mid and small caps help to generate alpha.
Axis Multicap Fund is a mix of stocks across segments. “Investors who aim to achieve long-term financial goals with minimum volatility, and are moderate risk takers should consider investing in a multi cap fund,” Axis AMC said.
The money manager further added that the mutual fund will leverage the bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective.
Since different market cap work in different phases, the multi cap category aims to target leaders in all market cap bucket. Axis AMC plans to capture the larger organised markets and capable companies which have the potential to become leaders.
On the launch of the NFO, Chandresh Nigam, managing director and chief executive officer, Axis AMC, said “Our long-term focus is to not only protect capital but also returns. Keeping this strategy in mind, we have launched the ‘Axis Multicap Fund’. This fund will help investors’ package large, mid and small cap stocks in one single portfolio and steer through volatile market cycles. Our fundamentals rely on quality, and it has helped us sail through tough market conditions. Our market-wide allocation strategy will help us deliver sustainable growth over the long run.”