Axis Mutual Fund has announced the launch of the Axis Multicap Fund, which will be available for subscription on November 26, 2021, and will close on December 10, 2021. The fund will allocate 25% of its net assets to large, mid, and small cap equities, with at least equal exposure in each group. Anupam Tiwari and Sachin Jain will be in charge of the scheme.
Axis Mutual Fund established a new multi-cap fund from which it hopes to raise at least Rs 5,000 crore, as part of a wider move in the equities funds industry, which has been driving the massive market surge since the middle of last year.
Multicap funds must have a minimum 25% exposure to each market cap, according to SEBI regulations, to ensure that the portfolio is not too concentrated in one market cap.
While large caps give protection in volatile markets, mid and small companies serve to drive alpha. It is appropriate for investors seeking a consistent and deliberate allocation across market capitalizations.
Axis Multicap Fund will use a bottom-up stock selection process, concentrating on each stock appreciation potential from a fundamental standpoint. The allocation will be actively managed, with a focus on selecting the greatest ideas inside each market capitalization bucket.
Different market capitalization have different stages of operation, the multi-cap category tries to:
- Capture larger, more organized markets and capable enterprises with the potential to become market leaders.
- Manage your risk and aim for consistent profits.
- Allow for the capture of promising companies and a balanced allocation across all three market caps.
- Regardless of the company’s size or life cycle, strive to capture the best ideas.
The fund will aim to capture potential opportunities throughout the company’s lifecycle, from small-cap to large-cap.
Axis Multicap Fund invests in a variety of equities from various industries. “Investors who want to attain long-term financial goals with little volatility and are willing to assume moderate risks may pick a multi-cap fund,” according to Axis AMC.
Last week, the fund company announced a new index fund worth Rs 80-100 crore that will invest in Nifty 50 stocks.
According to the fund house, the open-ended plan, which has been open since November 15, tracks the Nifty 50 index and allows investors to passively participate in the large company universe.
In the last five years, the cut-off for large and mid-cap stocks has nearly doubled, with large caps providing a cushion during market downturns and mid and small companies helping to drive alpha.