Axis Mutual Fund has launched Axis Equity ETFs FoF, an open-ended fund of fund scheme predominantly investing in units of domestic equity ETFs.
The fund will be managed by Shreyash Devalkar. The minimum application amount is Rs 5,000. The new fund will track the Nifty 500 TRI benchmark and endeavour to generate alpha by investing in domestic equity ETFs basis the fund manager’s top-down investment view.
Since different sectors and market segments perform differently at different times, Axis Equity ETFs FoF’s investment approach is designed to allocate dynamically across market cap and sectoral/thematic passive strategies.
This allows investors the benefit of risk diversification by allocating across multiple equity ETFs. Furthermore, the scheme will endeavour to invest and maintain domestic ETF exposure greater than 95% of net assets at all times. The resulting tax treatment will be that of equity mutual funds. In addition to exposure to all equity ETFs in the market, Axis Equity ETFs FoF removes the risk of security selection while aiming for minimal tracking error, states the release.
Given the mutual fund structure, investors can look to invest through various systematic options like SIPs, STP & lumpsum investments.
The fund opens for subscription on February 4, 2022, and closes on February 18, 2022. It will charge an exit load of 1% if investments are redeemed before 15 days and nil thereafter.
