Axis Mutual Fund has launched the Axis India Manufacturing Fund, an open scheme that mirrors India’s manufacturing landscape, and is benchmarked against the Nifty India Manufacturing TRI. The new fund offer (NFO) opens on December 1st, 2023, and seeks to enable investors to tap into the potential growth of India’s manufacturing sector, which is anticipated to expand in the years ahead. Investors can participate in the NFO until December 15, 2023. The fund is designed to strategically invest in sectors benefiting from India’s economic shifts, aiming for a diverse portfolio reflecting the depth of India’s manufacturing strength.
India’s manufacturing sector is poised for significant growth and the new fund offering aims to capitalize on this emerging opportunity. The fund will focus on sectors such as capital goods, consumer durables, textiles, and pharmaceuticals, providing investors with a comprehensive investment avenue within India’s manufacturing landscape. Furthermore, the fund adopts a bottom-up strategy, selecting stocks across market caps and emphasizing active sector allocation and a ‘Quality’ investing style.
The surge in growth is fueled enhanced economic confidence driving product demand and efficient use of production capabilities. Consequently, the fund focuses on three companies across three sectors of the Indian economy:
– Investments (Capex cycle): Companies boosting production through investments in equipment and research.
– Consumption: Industries witnessing increased demand due to rising incomes and a trend towards premium products.
– Net exports: The fund will be focused on companies benefiting from India’s global supply chain integration.
The manufacturing fund will enable investors to participate in India’s promising growth trajectory, and is expected to open up new investment opportunities within the country’s evolving industrial landscape. It provides a unique investment avenue that strategically aligns with India’s economic transitions and government initiatives. The new fund offering will allow investors to capitalize on the potential growth of India’s manufacturing landscape, and is positioned as a competitive global manufacturing center primed for significant growth.
As B Gop Kumar, MD and CEO, Axis Asset Management Company (AMC) notes, “This thematic fund is designed to capitalize on India’s growing momentum, focusing on sectors that stand to redefine India’s industrial contours.”
While manufacturing funds can carry higher risks due to their focused investment in specific sectors or trends, they can also bring higher potential rewards for investors. It is advised that investors should not allocate more than 10% of their portfolio into these thematic funds to manage risks effectively. As such, the new Axis India Manufacturing Fund offers a promising investment opportunity for those seeking to tap into the potential growth of India’s manufacturing sector.