An Open Ended Index Fund tracking the NIFTY Smallcap 50 Index
Mumbai: Axis Mutual Fund, one of the leading asset management companies in India announced the launch of Axis NIFTY Smallcap 50 Index Fund,(an Open Ended Index Fund tracking the NIFTY Smallcap 50 Index) today. Managed by Jinesh Gopani, Head – Equity, the fund will track the NIFTY Smallcap 50 TRI Index. The NFO opens for subscription on 21st February 2022 and closes on 7th March, 2022. The minimum application amount is INR 5,000 and investors can invest in multiples of INR 1, thereafter. The exit load is Nil.
Axis NIFTY Smallcap 50 Index Fund and the underlying index
Rebalanced on a semi-annual basis, the NIFTY Smallcap 50 Index represents top 50 companies selected based on average daily turnover from the top 100 companies selected based on full market capitalization in NIFTY Small cap 250 Index. This index is computed using free float market capitalization method, wherein the level of the index reflects the total free float market value of all the stocks in the index relative to particular base market capitalization value.
The Axis NIFTY Smallcap 50 Index Fund is structured in a manner to look for Quality, Scalability, and Stability in its portfolio. By relying on the market’s ability to identify niche high performing growth businesses, the fund will be selecting the most liquid small caps by average daily turnover over a 6-month period. Furthermore, higher weights will be assigned to companies with larger float and securities will be excluded if stock falls below the 130th rank based on full market cap. For more details visit www.niftyindices.com.
Smallcaps have been known to be alpha generators in Growth Cycles. Characterised as high growth companies with niche businesses aiming to disrupt the status quo, they have a high risk-high reward quotient. Further aided by the passively managed nature of the fund, the fund can be an ideal option for investors looking for market-linked returns and long term wealth creation solutions. Investors can look to invest through various systematic options like SIPs, STP’s to adopt a more disciple approach or invest via lumpsum.
Mr. Chandresh Nigam, MD & CEO, Axis AMC said, “When it comes to Smallcap companies, who can be considered at the stepping stones to Midcaps and Large caps, only good quality-oriented companies are able to make the transition. With the introduction of the Axis NIFTY Smallcap 50 Index Fund, we are hoping to drive alpha for our investors while maintaining focus on Quality, Scalability, and Stability in the portfolio. It aligns with our belief of offering quality products to investors that suits their risk appetite and need to yield long term wealth creation opportunities.”
