New Fund Offer: Axis Mutual Fund Introduces Momentum Fund
Axis Mutual Fund, which is an asset management company (AMC) that offers various schemes of mutual funds in India. Recently, Axis Mutual Fund has launched a New Fund Offer (NFO), namely the Axis Momentum Fund.
The New Fund Offer (NFO) has now opened and will be available for subscription until December 6.
If the exit load is redeemed or switched out within 12 months from the date of allotment, then it will not be charged 10% of the investment. However, a 1% exit load will be applicable for the balance investment amount.
Karthik Kumar and Mayank Hyanki manage this fund, and the fund performance will be benchmarked against the NIFTY 500 TRI. This scheme requires a minimum investment amount of Rs. 100 and in multiples of Re. 1 thereafter.
The fund’s objective is to generate long-term capital growth through investment in equities and equity-related securities, which have high price momentum. This scheme adopts a structured model-based approach to identify high-momentum stocks across different sectors. The investment process focuses on sector diversification, reduction of concentration risks, and optimal position size to achieve better performance and risk management.
Momentum investing focuses on identifying and capitalizing on good trending upward movements. Unlike traditional strategies that are looking for undervalued stocks or high-growth companies, momentum investing follows the principle of “buying high to sell higher.”
MD and CEO of Axis Mutual Fund, B Gopkumar said, “India’s volatile economy represents an interesting opportunity in itself. Momentum investing is a kind of investment that has become widespread globally, but in an Indian context where sectoral changes are occurring rapidly and market dynamics are altering, it represents something that will actually be sustained outperformance.”
