MUMBAI: Axis Mutual Fund has launched its third equity fund called Axis Midcap Fund, an open ended scheme.
NFO Period: January 31, 2011 to February 14, 2011
Investment Objective: The fund seeks to achieve long term capital appreciation by investing predominantly in equity & equity related instruments of mid-size companies. The focus of the fund would be to invest in relatively larger companies within this category.
Asset Allocation: The scheme would allocate 80-100 per cent of assets in equity and equity related instruments of midcap companies, of which 75-100 per cent allocation would be in larger midcap companies and up to 25 per cent in smaller midcap companies. It would allocate up to 20 per cent of assets in equity and equity related instruments of non midcap companies and up to 20 per cent of assets in debt and money market instruments.
Benchmark Index: BSE Midcap Index
Expenses/Exit Load: Recurring expense charged to the scheme will be 2.50 per cent per annum. The scheme will charge 1 per cent as exit load if units are redeemed within one year from the date of allotment.
Fund Manager: The scheme will be managed by Pankaj Murarka, Equity Fund Manager.
Target Investors: “We are targeting retail investors who can keep the money invested for 5 years and beyond,” said Rajiv Anand, Managing Director & Chief Executive Officer, Axis Mutual Fund. Axis MF expects to get one lakh investors to invest in this NFO.
The fund is meant for those looking to earn potentially higher returns through a basket of mid cap shares though they must be prepared for higher volatility.
Distribution Strategy: The fund will be marketed through partner banks, IFAs and national distributors. “Given the retail nature of this fund and the fact that we are present in 67 locations, the total road shows will be over 150. This is to reach out to Axis Bank branches and our key IFAs. The initial response from all our channel partners has been very positive,” said Anand.
Empanelled IFAs: Axis Mutual Fund has 7,500 empanelled IFAs. Out of these, 4,000 IFAs have transacted business and close to 1500 IFAs generate regular business for the fund house. For this launch, it is targeting 2,000 IFAs to bring assets.
Target Business: Axis expects to mobilise Rs 500 crore through this NFO.