A press release from the fund house said that the fund is designed in a manner that it tracks the performance of the NSE IT index – which tracks the 10 largest IT companies by free float market capitalization listed on the NSE.
Passive investing has been gaining ground in India over the last few years primarily due to wider participation of retirement trusts and greater investor awareness and maturity. Passive funds are essentially designed to track the performance of an index. They achieve this by replicating the portfolio of the underlying index. This allows passive funds to offer transparent, low churn portfolios at an extremely low cost to the investors.
The fund house has said that the IT industry has significant long term tailwinds for growth. The growth impetus has accelerated on the back of significant push by corporates on adopting new age technology and digital platforms – a move that has been accelerated by the events of the last year where technology played a crucial role in managing business disruptions. Indian companies have invested extensively in upgrading their capabilities in this space and are gaining market share consistently.
“As a responsible fund house, Axis MF understands the need to offer a complete bouquet of offerings to investors. We want to develop, introduce and provide the products that are relevant in the current context. Accordingly, we recognize the need to offer investors a choice of strategies including robust passive products. The launch of Axis Technology ETF continues to take forward our endeavour to build up our passive product suite over time,” Chandresh Kumar Nigam, MD & CEO, Axis AMC .
