Axis Mutual Fund launches ‘Axis Consumption ETF’
|
Highlights: - · An
Open Ended Exchange Traded Fund tracking NIFTY India Consumption Index · The fund
that seeks to track returns by investing in a basket of NIFTY India
Consumption Index stocks and aims to achieve returns of the stated index,
subject to tracking error · Minimum Investment (NFO)
Rs.5,000 and in multiples of Rs.1/- thereafter · Benchmark: Nifty India Consumption TRI Index · NFO date: August 30,
2021 to September 13, 2021 |
Mumbai, August 30, 2021: Axis
Mutual Fund, one of the fastest-growing fund houses in India, today
announced the launch of their new fund– ‘Axis
Consumption ETF’. The new fund offers (NFO), which will open on Monday, August
30, will allow exposure to the consumption theme in a neatly packed bite sized
exchange traded fund.
The new fund offers long-term wealth creation solutions
India's economy already had strong growth prospects
for the next ten years. The trend line in India's annual GDP growth has been
accelerating from 5.8% in the 1990s to 6.9% in the first 2 decades of the new
millennium (source: Morgan Stanley). We believe this trend will likely continue
for the next decade given the following structural factors:
· Favourable demographics: Over the next 10
years, 122 million individuals are likely to enter the work force, which is
equivalent to about 20% of India's current work force. (source: Morgan Stanley)
· Globalization: This provides the enabling
factors of external demand and financing that can be used to boost growth.
· Reforms: The government is continuing the
reforms that India started in the early 1990s, which relate to the ease of
doing business, FDI, government finances, taxation, infrastructure and greater
autonomy for states.
Digitization adds an incremental fillip to this growth
in our view. Digitization is integral to two changes: a) policy initiatives
that are boosting financial inclusion and b) technology changes that are
reducing the cost of delivering financial services to the masses and small
enterprises. These, along with the government's focus on employment for all,
will make growth more inclusive, which in turn makes us more confident about
India's growth outlook.
A key beneficiary in this growth is consumption. As an
aspirational populous India, today, stands next only to China as the largest
growth prospect in consumption ecosphere. As median incomes rise, the
expenditure pie for Indian families are likely to increasingly pivot to
discretionary spends which include entertainment, travel, consumer appliances
and even property.
This growth has already resulted in significant growth
across many B2C businesses across a variety of sectors. An indicator of this
performance is The NIFTY India Consumption. The index comprises of a
diversified grouping of companies across sectors like Consumer Non-durables, Healthcare, Auto,
Telecom Services, Pharmaceuticals, Hotels, Media & entertainment, etc.that
reflect the essence of consumption in India today across essentials and
discretionary spending. The NIFTY India Consumption Index comprises of the 30
largest consumption oriented companies by free float market capitalization.
The potential of passive investing in the Indian
financial markets has gained quite momentum and seems likely to stay. The two most
popular vehicles forpassive investing are index funds and exchange-traded funds. Passive
Investing is a low friction investment strategy tracking a specific index as
closely as possible. It participates in the constituents in the same proportion
as the index andremoves the risk of security selection at an efficiently low
cost strategy by relying on broader market wisdom.
Apart
from being cost effective, ETFs let investors invest at real-time prices as
opposed to end of day prices by sector funds. It protects their investments
from the inflows and outflows of short-term investors. Furthermore, ETFs are
best suited to earn asset-class linked performance and is touted to be one of
the most flexible tools for gaining instant exposure to the markets, thereby
equitizing cash.
On
the launch of the NFO, Mr. Chandresh
Nigam, MD & CEO, Axis AMC, said “We
at Axis AMC, strongly stand by being responsible fund house. We strive to
provide our consumers with a basket of products that are potently driven by quality
and are relevant in the current context giving long term returns. Through the
launch of Axis Consumption ETF, we aim to provide our consumers with an investment
option that has proof of growth & strong returns. The consumption market has
remained strong, gained traction and grown consistently over the last few
decades. Our investors are smart and are completely driven by data, it is
important that we distinctly show the surge in passive investing. I believe
Axis ConsumptionETF is a good opportunity for investors to gain exposure as
well as a steady and continued long-term growth in the market.”
For more details
https://www.axismf.com/nfo/axis-consumption-etf/ce
For detailed asset allocation & investment
strategy, kindly refer to scheme information document.
About Axis AMC: Axis AMC is one of India`s
fastest growing assets managers offering a comprehensive bouquet of asset
management products across mutual funds, portfolio management services and alternative
investments.
Mr.
Ujjawal Punmiya
DVP –
Public Relations & Corporate Communications
M:
+91 9619130947
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