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| Axis Mutual Fund launches its first Equity Fund | | ?Stresses on simplicity and solutions? |
| Announcement / Markets Nov 10, 2009, 20:10 IST |
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Axis Mutual Fund, sponsored by Axis Bank, has announced the launch of its first equity fund called Axis Equity Fund. This is a diversified equity fund benchmarked to the S&P CNX Nifty.
Commenting on the launch Mr. Rajiv Anand, MD & CEO, Axis AMC said, “The uniqueness of the offering will not be the product per se but in the way the product is communicated and distributed. We aim to offer total investment solutions to consumers and not just individual products. Our research has shown that there is a huge demand for simplicity and trust in financial services. We therefore chose to launch a simple but effective product in the category of diversified equity funds. Data from www.valueresearchonline.com indicates that in the last five years (as on 30 October 2009) all the 85 diversified equity funds have given positive returns with the worst giving 12% p.a.* and the best 34% p.a.* With a simple product and a reputed brand name like Axis, we have an appealing solution for the consumer.” *Returns are compounded annualized and based on growth option NAVs. Past performance may or may not be sustained in the future.
“Axis Equity Fund is a solution designed for a consumer who is seeking a balance between deciding the best investment option that helps him provide for his family’s future and ensuring that he has invested wisely, thus helping him enjoy the present with his family” said Mr. Karan Datta, National Sales Head.
Mr. Chandresh Nigam, the designated Fund Manager for the scheme and a stock market veteran further commented, “We are aware that Axis Equity Fund is not just a diversified equity fund that has to perform but also more importantly, has the potential answer to a long term solution that the investor is seeking. Managing risk therefore is very critical. It goes without saying that the fund will be based on a rock solid and process oriented approach. Our proprietary four step investment process will help us manage associated risks, yet the wealth of wisdom that comes from an experienced team of equity professionals will not be discounted.”
Axis Equity Fund will open for subscription on 11 November 2009 and will close on 8 December 2009. It will re-open for on-going purchase and redemption on 7 January 2010. Investors can apply through a lump sum purchase or through Systematic Investment Plans during the NFO. The minimum lump sum purchase that one can make is for Rs 5,000 with no restrictions on the maximum amount. The scheme is available in two options Growth & Dividend. There is no entry load on the scheme. However 1% will be charged as exit load if the investor redeems / switches out from scheme within 1 year from the date of allotment
Axis Mutual Fund had launched two debt schemes in the month of October 2009. It manages Rs. 1988 crores in these two schemes as on 31 October 2009. Axis Mutual Fund already has offices in over 25 Indian cities.
Statutory Details & Risk factors
Investment objective: To achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity related securities including derivatives. However, there can be no assurance that the investment objective of the Scheme will be achieved. Asset Allocation: Equity and Equity Related Instruments – 80 – 100%, Debt and Money Market Instruments – 0 – 20% including securitized debt (excluding Foreign Securitized Debt) up to 20% of the net assets of the Scheme. The scheme may invest in derivatives up to 100% of the net assets of the scheme and in foreign securities (including ADR’s/GDR’s/foreign equity & debt securities) up to 40% of the net assets of the scheme.
Terms of issue and sale and redemption of units: Initial issue of units at Rs 10 per unit for cash during the new fund offer period. The scheme offers sale and redemption facility at the applicable NAV subject to prevailing exit load on all business days during the ongoing offer. The NAV of the scheme would be calculated for all business days. SIP Application: SIP is available during the NFO for a minimum of Rs 1000 per month for a minimum period of 36 months. The Scheme Information Document and Statement of Additional Information/ Key Information Memorandum cum Application form are available at AMC and Registrar offices and Investor Service Centres / AMC web-site - www.axismf.com / Distributors.
Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Axis Mutual Fund Trustee Limited, a company incorporated under the Companies Act, 1956, with a limited liability is the Trustee to the Mutual Fund. Axis Asset Management Company Limited (the AMC), a company incorporated under the Companies Act, 1956, with a limited liability is the Investment Manager to the Mutual Fund.
Risk Factors: All Mutual funds and securities investments are subject to market risks and there is no guarantee that the investment objective of the scheme will be achieved. The NAV of the units issued by the Mutual Fund under the scheme can go up or down depending on various factors and forces affecting securities markets. Past performance of the Sponsor or its affiliates/the AMC/the mutual fund or its schemes does not indicate the future performance of the scheme. Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of any of the mutual fund scheme launched by the AMC. Mutual Fund Investments are subject to market risks. Investments in the scheme are subject to various investment risks such as trading volumes, settlement risk, liquidity risk, default risk, risk of possible loss of principal, etc. Trading volume may restrict liquidity. Equity and equity related instruments are volatile by nature. Axis Equity Fund, an open-ended growth scheme, is only the name of the Scheme and does not in any manner indicate either the quality of the Scheme, its future prospects and returns. Please read the Scheme Information Document and Statement of Additional Information carefully before investing.
About Axis Asset Management Company Limited
Axis Asset Management Company Limited is a wholly owned subsidiary of Axis Bank Limited. It is the Investment Manager to Axis Mutual Fund.
About Axis Bank Limited
Axis Bank is the third largest private sector bank in India. It offers a vast spectrum of services encompassing Large and Mid-Corporate Banking, SME Banking, Agri-Business Banking, Retail Banking and International Banking. The Bank’s network in India spans more than 900 offices and over 3800 ATMs. The Bank has embarked on creating a footprint in Asia and today has a presence in the major financial cities of Singapore, Hong Kong, Dubai and Shanghai. In addition, the Bank has also entered into strategic tie-ups and alliances with partner banks in UAE, Doha, Muscat (to be launched) to reach out to NRIs in these geographies.
The Bank has set up five wholly-owned subsidiaries - Axis Sales Limited, Axis Private Equity Limited, Axis Trustee Services Limited, Axis Asset Management Company Limited and Axis Mutual Fund Trustee Limited.
The Bank carries out its corporate social responsibility initiative through Axis Bank Foundation set up in 2006 and registered as a public trust. Each year the Bank transfers 1% of its net profit of the previous year to the Foundation (the maximum permitted by RBI).
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