New Fund Offer-Axis Small Cap Fund

Axis Mutual Fund has launched a new close ended equity scheme named “Axis Small Cap Fund”.

The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The NFO opened for subscription from 11 Nov  and will close on 25 Nov 2013.

 Axis Small Cap Fund is a 5-year close-ended equity fund that will focus on investing at least 80% of its assets in small-cap stocks (stocks that are in market-cap range of the CNX Smallcap Index). The fund will automatically become an open-ended fund at the end of 5 years.

As even quality picks in the small-cap space would require a buy and hold approach, the fund’s close-ended nature is likely to help implement this without pressure of redemptions.

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Axis Small Cap Fund is Close ended fund, so you can not exit before convert to open ended.  Dividend Payout option is best for Investment point of view