The fund, opening on November 26 and closing on December 10, will provide investors with an opportunity to invest in large, mid and small cap stocks with minimum equal exposure across each category, Chandresh Nigam, Managing Director & Chief Executive of Axis AMC said on Tuesday.
The fund house, which is one of the fastest-growing ones, plans to mobilse at least Rs 5,000 crore from the new fund, Raghav Iyengar, Chief Business Officer at the fund house, told PTI.
The fund, an open-ended equity scheme, will track the Nifty 500 multi-cap stocks. It will be managed by Anupam Tiwari and Sachin Jain who are fund managers at the company.
According to Sebi regulations, multi-cap funds need to have a minimum 25 per cent exposure under each market cap, ensuring that the portfolio is not overtly concentrated towards a particular market cap. Due to its large and varied investment universe, multi-cap funds offer the dual benefit of growth and risk-adjusted returns, making them a better solution for long-term investment objectives and wealth creation.
Last week, the fund house announced a Rs 80-100 crore new index fund that will invest in the Nifty 50 stocks.
The open-ended scheme, which is open since November 15, tracks the Nifty 50 index and allows investors to passively participate in the large cap universe, the fund house said.
The large and mid cap cut-off has almost doubled in the last five years with large caps providing a cushion during tough market conditions, and mid and small caps helping drive alpha.
The Axis Multicap Fund will offer a consistent mix across segments and is suitable for investors looking for a stable, conscious allocation across market capitalisations, Nigam said.
The fund will target leaders in all market cap buckets by capturing the larger organised markets and capable companies which have the potential to become leaders, he added.
Further, Nigam said the multi-cap fund will help investors package large, mid and small-cap stocks in one single portfolio and steer through volatile market cycles.
