A closed-ended fund with a roughly four-year lock-in to invest in multi-cap stocks. We give you our analysis
Axis Capital Builder Fund is a closed-ended equity fund with a term of 1540 days (a bit more than four years) which will invest in stocks across market capitalization (large-cap, mid-cap and small-cap). The fund will hold a concentrated portfolio of 30-40 stocks selected from the ‘Axis Universe,’ a larger set of 350 stocks.
The fund will follow a bottom-up approach and focus on the key elements of the ‘Axis strategy’, centred on:
Following the rural push in Budget 2018, the fund will embrace rural India as one of its key themes. It will focus on rural consumption and infrastructure as key sectors for its portfolio. It will also try to maintain a large-cap allocation of at least 50% of the portfolio. The fund may also hedge (convert to debt-like returns) up to 15% of its portfolio.
Closed-ended funds have no established track record to evaluate them against. This particular one has no distinctive theme either other than a generic focus on good investment practices and promising sectors. One has to rely on the overall record of the fund managers and the fund house. Both fund managers, in this case, are highly experienced.
Anish Naik and Anupam Tiwari will manage the fund. Naik has been an Assistant Fund Manager with Axis Mutual Fund for about two years following about seven years as a Research Analyst with the same fund house. He previously worked with Goldman Sachs. Anupam Tiwari was a Research Analyst at Reliance AMC for about 6 years and then a fund manager at Principal PNB for about 5 years. He has worked with Axis Mutual Fund as a fund manager for about 1.5 years.
Two general advantages of closed-ended funds are:
Term: 1540 days
Benchmark: Nifty 500
Minimum Investment: Rs 5000
NFO Period: 16th February to 1st March 2018
Options: Growth, Dividend Payout
Fund Managers: Anish Naik and Anupam Tiwari
Note: Mutual fund investments are subject to market risks. Read all scheme related documents carefully. Talk to your financial advisor before investing.
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