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Axis Mutual Fund has launched Axis Nifty 500 Value 50 Index Fund.
The underlying index uses metrics like price to equity ratio, price to book ratio, return on capital employed and dividend yield of stocks to pick value stocks from the top 500 companies.
In a press release, B. Gopkumar, MD & CEO of Axis MF, said “India is still in a nascent stage when it comes to factor investing, with the theme having gained acceptance amongst investors very recently. Our fund provides a convenient way for investors to participate in the true to label value strategy at relatively low cost.”
Ashish Gupta, CIO, Axis MF said, "Despite being a relatively new category in India, factor-based investing is a promising space and has grown from Rs.300 crore to Rs. 30,000 crore in a matter of only 4 years. Value investing is part of factor-based investing that is designed to offer investors an opportunity to gain exposure to 50 stocks that are attractive in terms of their valuation multiples, aiming for long-term wealth creation."
