NFO Analysis: Axis Nifty next 50 Index Fund
Axis Mutual Fund offers various types of schemes such as equity-oriented, debt-oriented, hybrid, ETFs, international funds and solution-oriented schemes i.e, in total, the fund offers 52 different schemes. The total assets under management of the Axis Mutual Fund are Rs 2,38,176.97 crore, which is launching the Nifty Next 50 Index Fund. This is an open-ended scheme that seeks to track the index Nifty Next 50.
Subscription Dates: The NFO was launched on January 7, 2022, and will close on January 21, 2022.
Objective of the scheme: The scheme seeks to provide returns before expenses that track and closely correspond with the returns of NIFTY NEXT 50 subject to tracking errors.
Investment Strategy: The scheme would invest in equity and might also invest in debt and money market instruments in compliance with regulations to meet the liquidity and expense requirement. The scheme seeks to invest in stocks forming part of the underlying benchmark in the same ratio as per the benchmark to the extent possible and to that extent follows a passive investment strategy, except to the extent of meeting liquidity and expense requirements.
Asset Allocation: Under normal circumstances, the asset allocation pattern will be:
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Instruments
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Minimum (%)
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Maximum (%)
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Risk Profile
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Securities covered by Nifty Next 50 Index
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95
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100
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High
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Debt & Money Market Instruments
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0
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5
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Low to Medium
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Benchmark: Nifty Next 50 Index.
Fund Manager: Jinesh Gopani
This fund will be suitable for investors with high-risk appetites as the fund manager of this scheme will allocate the capital towards equity and equity-related instruments and a very small proportion towards debt and money market instruments. Investors who are willing to diversify their portfolios and wants the exposure of Nifty Next 50 index which offers an investor to invest in a collection of companies that have the scope to become market titans and have potential to be included in the Nifty50 index. NFO is not the best option to invest in as there is no historical data available to track the performance. As this is not a new theme which the fund is offering, so it’s better to invest in schemes that already have historical data. Otherwise, investors who are willing to invest should have a high-risk appetite.