Axis Nifty500 Value 50 Index Fund NFO: Date, Review & NAV

Axis Nifty500 Value 50 Index Fund: Complete Overview

Axis Mutual Fund under Axis AMC has launched its new fund offering Axis Nifty500 Value 50 Index Fund. The NFO date for subscription is between October 04, 2024, to October 18, 2024, with an NFO price of Rs.100 and in multiples of Rs.1 thereafter.

Fund’s CIO said-“Factor-based investing has grown from Rs.300 crore to Rs.30,000 crore in just four years. Value investing, a key part of this strategy, offers investors access to stocks with favorable valuations, helping them achieve long-term wealth creation.”

The goal of the Axis Nifty500 Value 50 Index Fund is to provide diversified exposure to businesses that are valued at less than market value. It employs a mechanism whereby sector allocation is capped at 25% and individual stock weights are limited to 5%.

Axis Nifty500 Value 50 Index Fund Details

The Axis Nifty500 Value 50 is an affordable option for investors because it is a passively managed index product with fewer expenses than actively managed funds. The fund aims to create wealth over time with a long-term emphasis, and historically, it has beaten indices of the broader market.

For experienced investors looking to add a value stock-focused passive investment strategy to their portfolios, this fund is perfect. According to Axis Mutual Fund, it also caters to long-term investors looking for exposure to businesses with compelling value propositions in the Indian market.The scheme will invest 95-100% in securities of the Nifty500 Value 50 Index and 0-5% in money market & debt instruments.

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Fund Overview

The Axis NFO for this scheme's minimum subscription amount is Rs.100 and in multiples of Rs.1 thereof.

How To Invest in the Scheme After the Closure Date?

If you have missed participating in the New Fund Offer and now want to invest in the same Scheme on a continuous basis, then within 5 working days from the allotment, when the Scheme will reopen; you will have the option to participate and invest directly in this NFO Mutual Fund by spending at NAV based price by logging on to your Demat account and search for “Axis Nifty500 Value 50 Index Fund” or directly with the AMC or simply click the ‘Banner’ below.

 

 

The Objective of the Fund

Deliver returns, subject to tracking error, before costs that match the Nifty500 Value 50 TRI is the Scheme’s objective. 

Asset Allocation (% of total Assets) of the Scheme's portfolio will be as follows:

Peers of Axis Nifty500 Value 50 Index Fund

Since this scheme is a new scheme, hence no past performance data is available.

Risk Factors in Such Funds

The plan will be a passively managed plan that tracks the performance and yield of the Nifty500 Value 50 Index before expenditures and gives investors exposure to its constituents.

• Based on their "value" rankings, 50 companies from its parent Nifty500 index make up the Nifty500 Value 50 index. The nature of equities is volatile, and daily price swings occur.

• Given that mid and small-cap stocks are included in the index, the fund management may take some time to buy or sell some stocks due to trading restrictions or liquidity problems. This could cause a brief discrepancy between the portfolio of the scheme and the benchmark index.

 

Past Performance of Nifty500 Value 50 ETF Funds

 

Axis Nifty500 Value 50 Index Fund-Growth Fund Managers:

• Mr. Karthik Kumar.

• Mr. Hitesh Das.

Conclusion

The Axis Nifty500 Value 50 Index Fund provides an inexpensive access avenue to value stocks, and in it, a passively managed fund. As this fund is set up with a perspective of generating wealth over long periods, it has always targeted businesses that the market regards as undervalued. The fund also has to cap sector and stock allocations, and in general, is most suitable for experienced and long-term investors.

Disclaimer: This NFO analysis is provided solely for informative purposes and should not be taken as investment advice. Always research and talk with an eligible financial advisor before investing.