3 Mutual Funds Set to Launch New Thematic Schemes Targeting India’s Growth
Three well-known mutual fund companies—Axis Mutual Fund, Edelweiss Mutual Fund, and Motilal Oswal Mutual Fun, are planning to bring new thematic funds to the market. They recently filed draft proposals with the Securities and Exchange Board of India (SEBI) to get approval. These funds will each focus on specific themes: infrastructure, innovation, and consumer spending, all key areas in India’s ongoing development. Here’s a breakdown of what each fund aims to offer.
Axis Build India Fund: Investing in Infrastructure
The Axis Build India Fund is all about investing in companies that build or support real assets, such as infrastructure projects. This fund seeks to create long-term growth by investing in businesses involved in creating physical assets that support India’s development. It’s linked to the Nifty 500 Total Return Index (TRI) as a benchmark and will be managed by two fund experts with experience in equity investments.
For exit charges, the fund allows investors to redeem (withdraw) up to 10% of their investment with no fees if done within the first year. However, if an investor withdraws more than this 10% within the first 12 months, there’s a 1% exit fee. After the first year, there’s no charge for any amount.
The fund’s portfolio plans to invest mainly (80-100%) in companies driving real asset growth, with options for smaller investments in other equities, debt, and money market instruments. It also has the flexibility to put up to 10% in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
Motilal Oswal Innovation Opportunities Fund: Focusing on Innovation
The Motilal Oswal Innovation Opportunities Fund will focus on businesses that thrive through new and innovative ideas, making it a choice for investors interested in companies adapting to modern strategies and technologies. This fund targets long-term growth by investing in companies known for their innovative approaches.
The fund will also benchmark against the Nifty 500 TRI and is managed by a team experienced in spotting high-growth companies. For early withdrawals, there’s a 1% exit fee if an investor redeems within 90 days. After 90 days, there’s no exit fee.
The fund plans to put 80-100% of its portfolio into companies known for innovation, while also allowing smaller investments in other equities, debt, and money markets. Like the other funds, it can allocate up to 10% in REITs and InvITs, keeping the portfolio diversified.
Edelweiss Consumption Fund: Tapping into Consumer Demand
The Edelweiss Consumption Fund will focus on companies in the consumer sector, including those tied to consumer goods and services. The goal is to achieve long-term growth by investing in businesses that benefit from rising consumer spending in India.
The fund will be linked to the NIFTY India Consumption TRI index and managed by two experts with a strong background in consumer-focused investments. Its exit policy is simple: a 1% fee if investors redeem within 90 days and no charge if they redeem after 90 days.
For investments, this fund will place 80-100% in consumer-focused companies, with smaller portions set aside for other equities, debt, and money markets. It also has the flexibility to invest up to 10% in REITs and InvITs.
Conclusion
These new thematic funds aim to offer investors targeted ways to benefit from India’s growth. Each fund has its own theme like real asset creation, innovation, and consumer spending, allowing investors to choose based on their interests and financial goals. With flexible exit fees and varied asset allocation, these funds provide different paths to participate in the growth of key sectors within the Indian economy.
