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Friday, September 3, 2021

Axis Mutual Fund launches ‘Axis Consumption ETF’

 Axis Mutual Fund launches ‘Axis Consumption ETF’

 ·         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, September 03, 2021: Axis Mutual Fund, one of the fastest-growing fund houses in India, announced the launch of their new fund– ‘Axis Consumption ETF’. The new fund offers (NFO), which opened on Monday, August 30, allows exposure to the consumption theme in a neatly packed bite sized exchange traded fund.

The new fund offers long-term wealth creation solutions and targets to achieve returns by investing in a basket of NIFTY India Consumption Index stocks.

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 for passive 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 and removes 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 Consumption ETF is a good opportunity for investors to gain exposure as well as a steady and continued long-term growth in the market.”

Source: Axis MF Research

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.

Product Labelling:

(The product labelling assigned during the New Fund Offer is based on internal assessment of the Scheme Characteristics or model portfolio and the same may vary post NFO when actual investments are made)

Disclaimer: This press release represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). 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). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC). Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time.

The information set out above is included for general information purposes only and does not constitute legal or tax advice. In view of the individual nature of the tax consequences, each investor is advised to consult his or her own tax consultant with respect to specific tax implications arising out of their participation in the Scheme. Income Tax benefits to the mutual fund & to the unit holder is in accordance with the prevailing tax laws as certified by the mutual funds consultant. Any action taken by you on the basis of the information contained herein is your responsibility alone. Axis Mutual Fund will not be liable in any manner for the consequences of such action taken by you. The information contained herein is not intended as an offer or solicitation for the purchase and sales of any schemes of Axis Mutual Fund.

Past performance may or may not be sustained in the future.

Stock(s) / Issuer(s)/ Sectors mentioned above are for illustration purpose and should not be construed as recommendation.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.


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