Publish Date:
Axis Mutual Fund has launched – Axis Business Cycles Fund
It is an open-ended equity scheme following business cycles based investing theme.
Accordingly, the investment objective is to provide long term capital appreciation by investing predominantly in equity and equity related securities with a focus on riding business cycles through dynamic allocation between various sectors and stocks at different stages of business cycles in the economy. However, there can be no assurance that the investment objective of the Scheme will be achieved.
Under normal circumstances, Axis Business Cycles Fund will hold an allocation of 80% to 100% of its assets in Equity & Equity related instruments selected on the basis of business cycle, 0% to 20% in Other Equity & Equity Related Instruments, 0% to 20% in Debt and Money Market Instruments and 0% to 10% in Units issued by REITs & InvITs.
As per the Scheme Information Document, Axis Business Cycles Fund aims to generate capital appreciation by investing predominantly in equity and equity related securities with focus on riding business cycles through dynamic allocation between various sectors and stocks at different stages of business cycles in the economy.
Business cycles in an economy are typically characterized by the fluctuations in economic activity measured by real GDP growth and other macroeconomic variables. The Scheme would aim to deploy the business cycle approach in investing by identifying economic trends and investing in the sectors and stocks that are likely to outperform at any given stage of business cycle. The fund manager will endeavour to allocate to companies using a bottom up approach while representing key sectors where he/she believes would ideally benefit in the prevailing business cycle by identifying such economic trends. The scheme by utilizing a holistic risk management strategy will endeavour to manage risks associated with investing in equity markets.
Axis Business Cycles Fund’s performance will be benchmarked against Nifty 500 TRI
The scheme will be managed by Mr Ashish Naik and Mr Hitesh Das (for foreign securities).
The NFO opens for subscription on February 02, 2023 and closes on February 16, 2023. The schemes will reopen for continuous sale and repurchase within five Business Days from the date of allotment.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000/- and in multiples of any amount thereafter.
The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.