Axis Mutual Fund has announced the launch of the Axis India Manufacturing Fund, an open-end scheme that mirrors India’s manufacturing landscape and is benchmarked against the Nifty India Manufacturing TRI. The NFO is set to open on December 1, 2023, and will remain open for investors until December 15, 2023, giving them an opportunity to tap into the potential growth of India’s manufacturing sector.
The fund is strategically designed to invest in sectors that are benefiting from India’s economic shifts and will adopt a bottom-up strategy, selecting stocks across various market caps. It aims to offer a diverse portfolio reflective of the depth of India’s manufacturing strength.
The decision to focus on manufacturing as a theme stems from India’s embracing of modern technologies and sustainable growth, positioning the country as a competitive global manufacturing center. The surge in growth is driven by enhanced economic confidence, increasing product demand, and the efficient use of production capabilities.
The fund will focus on sectors like capital goods, consumer durables, textiles, and pharmaceuticals, offering a comprehensive investment avenue within India’s manufacturing landscape. Additionally, it targets companies boosting production through investments in equipment and research, industries witnessing increased demand due to rising incomes, and companies benefiting from India’s global supply chain integration.
B Gop Kumar, MD and CEO of Axis Asset Management Company (AMC), stated, “This thematic fund is designed to capitalize on India’s growing momentum, focusing on sectors that stand to redefine India’s industrial contours.”
It’s worth noting that currently, there are only a few manufacturing funds in India with a one and three-year track record. Financial experts advise investors against allocating more than 10% of their portfolio to these types of funds due to their higher risk and vulnerability to market fluctuations and industry-specific challenges. As such, they caution investors to be mindful of the potential drawdown on their portfolio.
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