Axis Mutual Fund has announced the launch of a new scheme, Axis Business Cycle Fund, with a NFO opening on Feb. 2nd, 2023 and closing on February 16th, 2023.
| NFO | Axis Business Cycle Fund |
|---|---|
| NFO Open Date | 2 Feb 2023 |
| NFO Close Date | 16 Feb 2023 |
| NFO Reopen Date | Within five Business Days from the date of allotment |
| Benchmark | Nifty 500 TRI |
| Fund Manager | Ashish Naik Hitesh Das (Foreign securities) |
| Exit Load | If redeemed / switched-out within 12 months from the date of allotment -For 10% of investment: Nil -For remaining investment: 1% |
| Minimum Investment | 5,000 |
Investment Strategy
The Scheme aims to achieve capital appreciation by investing primarily in equities and equity-related assets, with a focus on riding business cycles through dynamic allocation across different sectors and stocks at various periods of the economy's business cycle.
The Scheme would use a business cycle approach to investing, identifying economic patterns and investing in sectors and businesses that are likely to outperform at any given stage of the business cycle.
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To identify the state of the business cycle, the fund manager will consider:
- various macroeconomic parameters – GDP growth, exports, interest rates, inflation
- high frequency indicators – private consumption indicators, PMI
- business and consumer sentiment indicators – corporate earnings, business confidence index, forward looking estimates
By identifying such economic patterns, the fund manager will aim to allocate to companies using a bottom-up approach while representing important sectors where he/she believes should best profit in the current business cycle.
The Fund Manager may invest up to 20% of the scheme assets outside of the primary business cycle theme at his discretion, depending on his qualitative and quantitative assessment of the investment opportunity.
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The AMC implements a “”Fair value”” research process to assess the prospective appreciation of each stock in its universe (Fair value is a measure of the intrinsic worth of a company).
The scheme will try to control the risks involved with investing in equity markets by applying a holistic risk management strategy.
Investing process to manage these risks:
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- Quality Risk – Risk of investing in unsustainable / weak companies.
- Price Risk – Risk of overpaying for a company
- Liquidity Risk – High Impact cost of entry and exit
- Concentration risk – Invest across the market capitalization spectrum and industries/ sectors
- Volatility Risk – Volatility in price due to company or portfolio specific factors
- Event Risk – Price risk due to a company / sector specific or market event
