Maximize tax savings
up to ₹46,800 easily
0% commission • Earn upto 1.5% extra returns
Axis Growth Opportunities Fund is an open-ended scheme launched by Axis Mutual Fund house. The scheme aims to create wealth by investing in domestic and overseas stocks over the long run. This article covers the following:
Axis Growth Opportunities Fund is an open-ended scheme launched by Axis Mutual Fund house. The scheme aims to create wealth over the long run by maintaining a well-diversified portfolio of equity and equity related instruments both in India as well as abroad. It offers an amazing investment opportunity to generate higher risk-adjusted returns by taking exposure to an intelligent blend of domestic and foreign equities.
The overseas asset allocation process is spearheaded in collaboration with Schroder Investment Management Limited. The fund is predominantly composed of large-cap stocks about 65%; wherein 30-35 per cent is allocated to domestic large caps and remaining in foreign securities. The rest of 40% of the fund is made up of domestic midcap stocks. The fund manager seeks to align the domestic philosophy of the fund house with the overseas investment philosophy. It translates into matching the bottom-up stock picking strategy with high growth prospects.
The New Fund Offer (NFO) period is from 01 October 2018 to 15 October 2018. The scheme is available as a direct plan as well as a regular plan of the mutual fund. Additionally, both the plans are available in growth and dividend (payout and reinvestment facility) options.
Before investing in an NFO, it becomes crucial to know about its overall cost structure as it affects your take home returns considerably. The minimum amount required to buy units of this fund is Rs 5,000 and in multiples of Re 1 thereafter. You can purchase additional units of the scheme by paying an amount of Rs.100 and in multiples of Re. 1/- thereafter. There are no entry loads to invest in the scheme. However, the scheme charges an exit load of 1% if units are redeemed/switched out before 12 months from the date of allotment. But, if you exit the scheme after 12 months from the date of allotment, then no exit loads will be applied. The fund will be managed by Mr Jinesh Gopani and Mr Hitesh Das (for the overseas securities). The fund will measure its performance against S&P BSE 200 Index.
Investing in NFOs can be a tricky proposition. It is better to get abreast with the associated risk involved in the scheme:
Investors who wish to accumulate wealth over an investment horizon of 5 years or more may go for this scheme. This scheme is suitable for those who are looking for an opportunity to diversify into overseas stock markets. In this way, get a chance to participate in the growth stories of multiple global brands. They should be ready to take the additional risks involved that comes along with the extra returns. The scheme is operating for the first time; so it neither has a historical track record nor it spells out top 10 holdings and fund allocation information. You may have to depend on the past performance of the fund manager. At the same time there is no guarantee that the fund strategy works as planned. The fund value will be affected by market risks and other associated risks. You can decide to invest in this accordingly.
The unique feature of this scheme is its exposure to global brands in a controlled manner. This kind of diversification will enable the portfolio to generate higher returns on account of low correlations among the markets. In a way, such allocations assist in withstanding financial shocks in a better and planned manner thereby reducing the risk of the overall portfolio. Efforts are being made to explore market inefficiencies to boost returns via disciplined investing in stocks.
Whether you are a veteran or a budding investor in mutual fund domain, investing in mutual funds is made easy with ClearTax. You can visit ClearTax to pick from a diverse list of handpicked funds that are designed keeping in mind the risk profile and investment objective of investors. You can be assured of a hassle-free quick process of selecting any product from your favorite fund house with ClearTax. This requires just one KYC formality that will take not more than 5 minutes of your time. ClearTax makes simple investing for you. The process is very simple on ClearTax.
Step 1: Visit cleartax.in
Step 2: Select your favourite mutual fund plan
Step 3: Enter the amount you want to invest and select the mode of investment.
Step 4: Click on “Invest Now” and provide your basic details.
Step 5: Make payment. You just completed investing in 5 minutes.