Axis Mutual Fund announced the launch of the Axis Business Cycles Fund, an open-ended scheme, on Thursday. Those looking to ride and invest through different stages of business cycles in the economy may invest their money through the new fund offer (NFO) open till February 16, 2023.
The scheme would then reopen for continuous repurchase and sale on or before February 24, 2023. The scheme reopens within five business days from the date of allotment.
The scheme will have two plans, i.e., Direct Plan and Regular Plan with a common portfolio and respective Net Asset Values (NAVs). The idea behind investing in this open-ended scheme is to generate long-term capital appreciation from an equity scheme that invests with a focus on riding business cycles through dynamic allocation between various sectors and stocks at different stages. However, there can be no assurance that the investment objective of the scheme would be achieved.
Under normal circumstances, the asset allocation pattern will be as under:
Investment instruments
| Indicative allocations (% of total assets) | Risk profile | |
| Minimum | Maximum | High/Moderate/Low | |
Equity & Equity related instruments selected on the basis of the business cycle | 80 | 100 | Very High |
| Other Equity & Equity Related Instruments | 0 | 20 | Very High |
| Debt and Money Market Instruments | 0 | 20 | Low to Moderate |
| Units issued by REITs & InvITs | 0 | 10 | Moderate to High |
| Source: https://portal.amfiindia.com/spages/13542.pdf | |||
The performance of the scheme will be benchmarked with the Nifty 500 Total Return Index.
The minimum subscription amount investors may put in this fund is ₹5000. Investors may purchase additional units of ₹1000 and in multiples of Re 1, thereafter. The Net Asset Value (NAV) has been capped at ₹10 per unit during the NFO period.
The scheme has been labelled as “Very Risky” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to stay invested for a long period. However, investors must consult their financial advisers if in doubt about whether the product is suitable for them.
The fund will be managed by Ashish Naik as permitted under the regulations, guidelines and circulars issued from time to time. There is no entry load applicable. However, the fund house will charge an exit load as under
If redeemed/switched out within 12 months from the date of allotment
- For 10% of the investment – Nil
- For remaining investment – 1%
- If redeemed/switched out after 12 months from the date of allotment: Nil
