Axis Special Situation Fund

Axis Mutual Fund

NFO Start Date

December 4, 2020

NFO Close Date

December 18, 2020

Scheme Type

Open Ended


Equity - Sectoral/Thematic

Object of Scheme

To generate long-term capital appreciation by investing in mis-priced stocks facing special situations. The mis-pricing of stocks can occur due to companies facing special situations like regulatory/policy changes, management restructuring, technology led disruption and innovation or any temporary challenges in the operating environment. However, there can be no assurance that the investment objective of the Scheme will be achieved.


This scheme is suitable for investors with moderately high-risk appetite who are –

Interested in long term capital appreciation & income.
Interested in investing in an equity scheme which invests in undervalued securities.

Asset Allocation Pattern

InstrumentsMinimum % of total assets (Indicative)Maximum % of total assets (Indicative)Risk Profile
Equity & Equity related instruments80100High
Equity & Equity related instruments020High
Debt & Money market instruments020Low to Medium
Units that are issued by REITs and INVITs010Medium to High





Exit Load

If redeemed / switched-out within 12 months - For 10% of investment: Nil For remaining investment: 1%

Minimum Investment

Rs. 5,000 and in multiples of Re. 1/- thereafter Minimum Additional Purchase Amount Rs. 100 and in multiples of Re. 1/- thereafter

Fund Manager

Mr. Ashish Naik (for Equity Portion)

Qualifications :  B.E. Computers, PGDBM, FRM

Mr. Hitesh Das  (for Foreign Securities)

Qualifications : PGDM, M.Tech, B.Tech

Risk Factor

 Scheme specific risk factor

The Scheme may invest in stocks, which are undervalued with the anticipation of increase in price. However, the stocks may continue to languish and may not attain the anticipated price.

The Scheme is subject to investment style risk; the Schemes’ performance may not be in line with the general market in scenarios of strong upward or downward cycles. Further, the prices of securities invested by the scheme may not behave as expected by Fund Manager; this may affect the returns of the Scheme adversely.

What is Axis Special Situation Fund?

Axis Special Situation Fund is an open-ended, thematic, equity scheme that seeks to invest in opportunities arising from special situations such as regulatory changes, new technologies, sector dynamics, company specific changes, consumer behaviour changes, and global events.

It essentially aims to invest in opportunities presented by a changing business environment. It is a multi-cap, multi-sector fund.

What is Thematic Fund?

Thematic funds are equity mutual funds that invest in stocks that have an underlying theme.

Such funds seek to invest in companies and sectors that have a common underlying theme. For example, an agriculture theme fund may invest in fertilizer companies, agro-processing companies, tractor manufacturing firms, among others related to the agriculture sector.


SIP & STP Investment Option

FrequencyMin InstallmentMin Amt


Investment Strategies

The scheme’s investment objective is to generate long-term capital appreciation by investing in stocks facing special situations. The Special situations can occur due to companies facing / undergoing issues like technology led disruption and innovation, regulatory/policy changes, management restructuring, or any prolonged cyclical challenges in the operating environment. The effect of these special situations on the companies’ business model could be medium to long term in nature.

The fund will look to invest in stocks that are:

– Benefiting from disruptive change (disruptors, enablers, adaptors) on account of technology, regulatory, or any other factors or

– Witnessing a significant turnaround potential from a prolonged cyclical slowdown.

Such opportunities can be available at company level, industry/sector level or market level. The special situations which cover some of the disruptive changes are given below:

1) Shift from unorganized to organized: Across a host of sectors, reforms such as GST are pushing businesses to get more formalized. This trend is likely to get further enhanced by reforms in tax, labour and other regulations going forward and will allow the organized businesses to gain market share from the unorganized. Pushing this trend further is the restructuring of the supply chains and the formalization of retail trade. This is a fundamental shift that will transform the way business is done in India and is likely to benefit the players that can adapt their business models and make themselves more efficient.

2) Change in lifestyle aspiration leading to premiumisation: As per capita income grows in India the middle class and upper middle class is growing in size and consumer trends are transforming. The most notable feature is the move from a value approach towards a desire for premium branded products. At the same time value for money instincts of the Indian consumer have not gone away. So there is a challenge for companies to provide an aspirational product with the right branding and at the right price point in order to exploit the opportunity.

3) Technology led disruption in business model Technolgical change is transforming entire sectors practically overnight. Whether it is in terms of how businesses are using tech to innovate and create new product propostions, to better segment their customer base or to innovate their service delivery and customer engagement. Further tech innovation can produce winners and losers as many new business models are born and the old unresponsive managements are left behind – the trends accelerated by massive infusion of private equity money in favour of the new innovators.

4) Effect of internet/ digital delivery channels on traditional businesses The internet/ social media/ e-commerce/ mobile app ecosystem has transformed our consumption patterns and they are likely to continue doing so going forward. Especially for the retail and services sector, service delivery over digital channels is transforming the existing cost structures and delivery margins and forcing market share shifts in favour of the nimble and techaware businesses.

5) Business process innovation – Innovation in the business processes can change the fortune of a sector. By identifying an unmet consumer need or pain point and finding a profitable way of addressing it, new businesses can successfully take on existing leaders and generate lasting wealth for their investor base.

The above are some of the special situations which the scheme seeks to invest in. The fund manager may identify any other special situation from time to time and make investments in such companies, industries/ sectors and markets.