Axis Small Cap Fund has received 14000 applications of which over 30% are first-time mutual fund investors.
Close ended equity funds seem to have become a hit with advisors and investors.
Recently, ICICI Prudential Value Fund Series 1 collected Rs 643 crore. The recent NFO from Axis – a five year close ended small cap fund has collected Rs. 180 crore. Its earlier equity fund – Axis Focused 25 had collected close to Rs. 250 crore.
Axis Small Cap Fund has added 14000 folios to Axis MF’s investor base. Karan Datta, National Sales Head, Axis Mutual Fund said “It was a not an easy fund to sell to investors because of the five year lock in but advisors were convinced about the fund. Apart from banking channel, we have got good response from IFAs, national distributors in our NFO. Over 30% of the 14000 applications are from first time mutual fund investors,” said Karan.
The fund closed for subscription on November 25. The fund will become open ended after the completion of five year lock in period. 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.
Axis Mutual Fund manages Rs. 12171 crore as on September 2013.
