Axis Mutual Fund, a few days back, launched a value fund named “Axis Consumption ETF”. This new fund offer opened for subscription on August 30 and will end on September 13. Axis Mutual Fund, India’s fastest growing fund house has come up with this new fund which allows investors to get exposure to the consumption topic in Exchange Traded Funds. The fund seeks to track the returns by investing in a basket of Nifty India Consumption Index shares and aims to achieve the returns of the declared index. These funds aim to generate long term wealth creation solutions and returns by investing in a basket of Nifty India Consumption Index stocks.
“We, at Axis AMC, stand firmly in being the responsible fund house. We strive to provide our consumers with a basket of products that are potentially quality driven and relevant in the present context giving long term returns. Through the launch of Axis Consumption ETF, we aim to provide our consumers with an investment option that has evidence of growth and strong returns. The consumption market remains strong, has gained traction and has grown steadily over the past few decades. Our investors are smart and driven entirely by data, it is important that we clearly show the growth in passive investing. I believe Axis Consumption ETF is a good opportunity for investors to gain exposure as well as stable and sustained long-term growth in the market,” said Chandresh Nigam, MD & CEO, Axis AMC.
Simply put, an ETF is like a stock and can also be referred to as a basket of securities that also trade in the stock market. Exchange traded funds pool the financial resources of many people and use it to buy various tradable monetary assets such as shares, debt securities such as bonds and derivatives. Most of the ETFs are registered with the Securities and Exchange Board of India (SEBI). This is an attractive option for investors with limited expertise in the stock market.
The minimum amount required to invest in this Thematic Fund is Rs. 5,000 and after that you can invest as much as you want.
The fund house is of the view that massive digitization program along with India’s bright growth prospects for the next ten years, consumption will scale new heights in the country and grow rapidly. The byproduct of rapid growth and rising consumption is being reflected in the Nifty Consumption Index. The index comprises a diverse set of companies in sectors such as consumer non-durables, healthcare, auto, telecom services, pharmaceuticals, hotels, media and entertainment etc., reflecting the essence of consumption of essential and discretionary spending in India today. Nifty India Consumption Index comprises 30 largest consumption oriented companies by free float market capitalization.
One important thing that investors should know is the exit load. In this plan, 1 per cent load will be charged within 365 days for purchase of units worth more than 10 per cent of the investment.
As far as returns are concerned, the consumption theme has performed well over the past decade. NCI has given 16.59 per cent returns in the last nine years as compared to 15.39 per cent returns given by Nifty 50 TRIs. In a low-growth economy, many investors choose to stay invested in high-quality consumption businesses. In the past one year, consumer-focused funds have given 49.5 per cent returns in the past one year, while large and mid-cap schemes have given 58.2 per cent returns.
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