Axis Mutual Fund has introduced the Axis Consumption Fund, an open-ended equity scheme designed to invest in India’s growing consumption sector. The New Fund Offer (NFO) is open for subscription from August 23 to September 6, 2024.
The fund is benchmarked against the NIFTY India Consumption TRI and will be managed by Hitesh Das, Shreyash Devalkar, and Krishnaa Narayan, who will also handle investments in global securities. The Indian consumption market is expanding rapidly, driven by increasing disposable incomes, urbanization, and a rising middle class. The Axis Consumption Fund aims to provide investors with a diversified portfolio that includes sectors like FMCG, automobiles, telecommunications, healthcare, and real estate.
Also Read: What Is NFO?
Investors can start with a minimum application of ₹100, with additional investments in multiples of ₹1. The fund’s exit load structure encourages long-term investment by charging a 1% fee if redeemed within 12 months, except for 10% of the investment, which is exempt from this charge. After 12 months, there is no exit load.
The fund’s strategy focuses on key trends like innovation, formalization, urbanization, penetration, and premiumization, aligning with current and future consumption patterns. B. Gopkumar, Managing Director & CEO of Axis AMC, emphasized the fund’s relevance in today’s economic climate, noting India’s market strength despite global challenges.
