Axis mutual fund has introduced Axis Nifty smallcap 50 index fund, an open ended passive fund tracking the NIFTY Smallcap 50 index. The NFO is open for subscription from 21st February 2022 to 7th March 2022.
This Axis fund seeks to closely track Nifty smallcap 50 index and aims to achieve returns of the index subject to tracking errors.
Nifty smallcap 50 index represents top 50 potential small stocks selected based on average daily turnover from top 100 companies selected based on free float market capitalisation.
the scheme may also invest in debt and money market instruments in compliance with regulations to meet liquidity e n expense requirements.
Who will manage the Axis Nifty Smallcap 50 Index Fund?
The fund manager Mr. Jinesh Gopani has 19 year work experience. He is a B. Com graduate and holds master of management studies degree from Bharati Vidyapeeth institute of management studies and research (Mumbai ). Before joining Axis mutual fund he was associated with Birla Sun Life Asset Management Company Ltd. as portfolio manager; with Voyager India Capital private limited as Research Analyst and portfolio manager; Emkey Share and Stock Brokers limited as research analyst; and Networth Stock Broking Limited as Research Analyst.He is also successfully managing other Axis MF schemes such as Axis focused 25 fund along with Mr Hitesh Das, Axis long term equity fund, Axis growth opportunities fund, Axis retirement savings fund, Axis equity fund, Axis value fund, Axis NIFTY next 50 index fund.
Benefit of investing in Axis Nifty smallcap 50 index fund
- Clear-cut advantage of investing in high potential stocks for growth since small cap has low market capitalisation as compared to large cap and mid cap segment stocks
- Offers diversification across 50 small cap stocks from different industries, therefore better for portfolio diversification
- The Axis Nifty smallcap 50 index fund is investing in emerging companies stock and these companies have high potential to grow to mid or large cap segment in future
- Averages the market wisdom by identifying the best small cap ideas from the universe of 250 companies comprising the Nifty smallcap 250 index
- Here you are investing in passive index fund which has relative lower expenses as compared to actively managed fund
The minimum investment for lump sum is Rupees 5000 and in multiple of Rs.1 thereafter and in case of SIP you can start with Rupees 1000 and in multiple of Rs 1.
Presently there is no exit load in the scheme.
The scheme attracts equity taxation.
If you redeem before completion of one year, the gains are subject to short term capital gain tax wherein you pay 15% of your gains as STCG.
If you withdraw after completion of one year then profits above Rs.100000 will be taxable at the rate of 10%.
Should you invest in the Axis Nifty smallcap 50 index fund?
You can invest in
Axis Nifty smallcap 50 index fund if you follow the below mentioned criterias for your investment
- seeking a long term wealth creation solution.
- The investment horizon is between 5 to 7 years.
- You are ready for market fluctuations and do not get nervous in bear markets (falling money value).
- If you are looking for diversification in your portfolio.
In case your investing horizon is less than 5 year then you should refrain from this fund. Instead invest in debt funds.
New fund offer always take its own time to nurture and provide returns to the investors therefore investors should cautiously invest in NFO , after comparing with other funds of same category.
investment in solid small cap stocks consider the high risk high return investment opportunity small cap stocks have may have higher market volatility volatility. Therefore it is is advisable for the investors to have a long term investment horizon of for at least 5 to 7 years and assume a high risk if you consider investing in Axis Nifty smallcap 50 index fund.
