Axis Mutual Fund debuts Axis Business Cycles Fund: NFO to open this week

One of the top AMCs in the nation, Axis Mutual Fund, has announced the introduction of Axis Business Cycles Fund, an open ended equity scheme with a business cycles-based investment concept. Mr. Ashish Naik will be in charge of managing the initiative. The minimum investment amount would be Rs. 5000, with subsequent investments being made in multiples of Rs. 1 afterwards. The new fund will track the NIFTY 500 TRI index.

With an emphasis on managing business cycles through dynamic allocation between different sectors and companies at various phases of business cycles in the economy, the fund's investment objective is to deliver long-term capital appreciation by investing primarily in equity and equity linked securities.

Axis Mutual Fund has said in a release that “The fund will have a cycle-driven portfolio. In expansionary times, we would focus on building a cyclical sector-based portfolio of companies which would benefit from an impending favorable upcycle. During slowdowns, or uncertain times, the portfolio would tilt to counter cyclical themes or companies that would be in a better position to navigate tough times. Contrary to the bottom up approach to investing, this fund will employ a hybrid approach to investing. A top down approach to identify economic trends and {more importantly choose sectors ideally suited to benefit from their business upcycles} and then, use a bottom up approach to identify particular stocks who would thrive above the rest within the identified sector. Further, the fund will follow a dynamic approach with no market bias.”

On the launch of the NFO, Mr. Chandresh Nigam, MD & CEO, Axis AMC, said “If one were to assess India’s growth through a ‘Business Cycle’ lens, we are currently at an interesting position, between the Expansion and Peak phase. Multiple drivers are beginning to fall in place for investment cycle pick up in India. Axis Business Cycles’ unique hybrid investment approach (mix of Top Down and Bottom Up) follows the Quality style of investing and offers no market cap bias to investors. As a fund house that believes in leveraging market opportunities in a disciplined manner, we believe that the Axis Business Cycles Fund will be a notable add on in an investor’s portfolio.”

Axis Business Cycles Fund will have the flexibility to be more aggressive in terms of overweight and underweight across sectors. It means that when we find an opportunity in a sector, we will try to build a bigger position in that sector showing our high conviction. Equally important would be to try to cut our weightages as the investment story plays out, and we move onto the next sector with an imminent favorable upcycle, said Axis Mutual Fund house in a statement.

The key attributes of the fund include hybrid approach, mix of top down and bottom up, flexibility for a more aggressive stance in terms of sector over/ under weight, no market cap bias and style – quality focused.

The NFO opens on 2nd February 2023 and closes on 16th February, 2023 and the fund charges an exit load if redeemed/switched out within 12 months from the date of allotment Nil if for 10% of the investment and 1% for the remaining investment. There will be no exit load if units redeemed/switched out after 12 months from the date of allotment.