Axis MF launches first equity fund

The fund, currently open for subscription,  will close on December 8, 2009. It will re-open for on-going purchase and redemption on January 7, 2010. One noteworthy feature of the fund is that unlike other funds it is not closely benchmarked on an index. Axis Equity Fund  is an index agnostic fund, because it does not plan to invest blindly in index stocks. Instead, the company will be conducting extensive research on companies and investing in businesses, rather than just a stock, it said. 

Talking about the special features of the fund, AxisMutual Fund Head-Equity Chandresh Nigam said, “Axis Equity Fund has the potential answer to a long term investment solution that the investor is seeking. Managing risk therefore is very critical.  Our proprietary four step investment process will help us manage associated risks, as for us risk and return are equally important. ”

Investors can apply through lumpsum purchase or systematic investment plan during the NFO. The minimum sum purchase is for Rs 5,000 with no restrictions on the maximum amount.

The scheme is available in two options growth and dividend. There is no entry load on the scheme. However, 1 per cent will be charged as exit load if the investor redeems or switches out from the scheme within one  year from the date of allotment.
On the rationale behind launching an equity fund with the current uncertainty prevailing in the stock market,  AxisMutual Fund Head-Equity Chandresh Nigam said “historically equity  has given 6 to 7 per cent more returns than other investments, so if the investor is looking at the long-term, it is an ideal option.”