Axis Mutual Fund announced the launch of its five year close ended equity scheme called Axis Small Cap Fund.
Benchmarked against BSE Small Cap Index, the scheme seeks to generate long-term capital appreciation from a diversified portfolio of predominantly equity & equity related instruments of small cap companies. The portfolio will be built by using a bottom-up stock selection process.
The scheme will be managed by Pankaj Murarka who currently manages Axis Midcap Fund and Axis Income Saver Fund. The scheme will become open-ended on completion of five years.
“Selective small caps have historically outperformed large caps over a long period of time. We believe that the lower correlation of small cap stocks with the bellwether index brings the desired diversification in an investor’s equity portfolio. The valuation gap between small & mid/large caps has widened over the last few years and this presents us with an opportunity to pick quality strong businesses operating in niche markets with healthy balance sheets at lower prices,” said Chandresh Kumar Nigam, MD & CEO, Axis AMC.
The fund opened for subscription on November 11 and closes on November 25. The minimum subscription amount is Rs. 5000.
Axis Mutual Fund manages Rs. 12171 crore as on September 2013.
Recently ICICI Prudential, IDFC, Union KBC and Reliance have also launched their close ended equity schemes.
