Axis Mutual Fund has revealed the successful accumulation of more than ₹3,400 crores in the Axis India Manufacturing Fund. This thematic fund was introduced to deliver long-term capital appreciation through investments in equity and equity-related securities of companies aligned with the manufacturing theme.
From December 01 to December 15, 2023, this new fund offer (NFO) witnessed strong engagement from various investor segments across more than 500 locations in India, accumulating nearly 1,50,000 applications. Notably, approximately 70% of the applications represented new inflows, underscoring the substantial success of the NFO. Additionally, the digital channel played a significant role, contributing to nearly 20% of the total applications, indicating a gradual transition in investor preferences towards the digital investing sphere.
B Gopkumar, MD & CEO, Axis AMC commented, “The overwhelming response underscores the confidence that investors have placed in India’s growth potential and Axis Mutual Fund’s commitment to deliver value. A significant ~10% of the applicants opted for long-term investments through systematic investment plans (SIPs). Almost 30% of the Investors who invested in the NFO were new to Axis Mutual Fund, advocating their faith in us. This strong response marks the evolution of India’s investor base demonstrating resilience and preference for such funds while understanding the long-term opportunities to leverage, given the fact that India remains on a higher growth trajectory and the government’s strong focus on manufacturing.”
Investors inclined towards this scheme have the flexibility to invest with a minimum amount of ₹500 per plan/option, and they can increase their investment in multiples of Re 1. There is no upper limit imposed on the investment amount. Shreyash Devalkar and Nitin Arora serve as the designated fund managers for this scheme. The scheme carries a “Very High Risk” designation as shared in the fund’s Scheme Information Document and is most suitable for investors who comprehend that their principal is exposed to very high risk.
In the era of the “new normal”, international companies are progressively expanding their production bases and market reach, prioritizing profitability and mitigating regulatory risks. The aim is to enhance resilience in supply chains. Numerous global corporations in sectors such as automotive, electronics, engineering, food processing, chemicals, and healthcare have established substantial manufacturing operations in India. This trend has been further expedited by the government’s focus on promoting domestic manufacturing.
The growing trend of including thematic funds, like this one, in investment portfolios suggests that increasing market optimism is prompting investors to embrace higher levels of risk. This is particularly notable at a time when adjustments to the country’s laws are underway to bolster the manufacturing sector.
The recent unfolding developments have given rise to a manufacturing ecosystem comprising both international and indigenous manufacturers, suppliers, and service providers. Consequently, these entities have established supply bases in India, strategically positioned to meet both global and domestic demands.
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Published: 22 Dec 2023, 04:07 PM IST