An open-ended equity fund investing across large cap, mid cap, small cap stocks with an objective to create long-term wealth for its investors.

Summary

Investment Objective*

To generate long term capital appreciation by investing in a diversified portfolio of equity and equity related instruments across market capitalization.

However, there can be no assurance that the investment objectives of the scheme will be realized.

*Source: Scheme Information Document

Is this fund for you?

The Axis Multicap Fund (AMF) is an equity oriented fund investing across large cap, mid cap, small cap stocks. The objective is to create long term capital appreciation for its investors by investing 80-100% of its net assets into equity and equity related instruments.

Multi-cap funds offer investors a diversified portfolio of stocks across the market-cap spectrum. The ability of the funds to vary their portfolio across market-caps based on the market outlook, gives investors an opportunity to earn higher returns. Some schemes may have either a predominant large-cap or mid-cap allocation. Multi-cap funds provide investors a benefit of investing across market capitalisations through a single fund.

These funds aim to give investors best of both the worlds. The investment in large cap stocks provides stability to the portfolio and that in mid and small caps help generate extra-ordinary returns. In the risk-return curve, they fit in between large-cap funds and mid- and small-cap funds.

AMF will identify companies that are at their inflection points with the potential to substantially improve their growth trajectory. Growth in these companies can happen due to market share gain from competitive advantage, industry consolidation, sunrise industry, improved management focus and capital allocation and regulatory and policy changes.

Hence, the fund is suitable for investors with a high-risk appetite and long-term investment horizon of at least 5 years. This fund is best suited for investors who can assume high risk in an anticipation of high returns in future.

---

How will the fund allocate its assets?

The asset allocation under normal circumstances will be as under:

$ The Scheme shall invest in equity and equity related instruments of companies across market capitalization.
# Including derivatives instruments to the extent of 50% of the Net Assets as permitted by SEBI Regulations
*Investment in Securitized debt (excluding foreign securitized debt), if undertaken, would not exceed 20% of the net assets of the Scheme.

Further it is stated in the offer document that:

• The Scheme may seek investment opportunities in foreign securities including ADRs / GDRs / Foreign equity and debt securities.  Such investment shall not exceed 50% of the net assets of the Scheme.
• The Scheme shall not invest in foreign securitized debt and Credit default Swaps and shall not engage in short selling activities.
• The Scheme may undertake repo transactions in corporate debt securities in accordance with the directions issued by RBI and SEBI from time to time.
• The Scheme retains the flexibility to invest across all the securities in the equity, debt and Money Markets Instruments and mutual fund units. The portfolio may hold cash depending on the market condition.

Stock Lending

• Not more than 20% of the net assets of the Scheme can generally be deployed in Stock Lending.
• Not more than 5% of the net assets of the Scheme can generally be deployed in Stock Lending to any single counter party.

---

What investment strategies will the fund follow?

Being an open-ended focused equity fund, AMF aims to generate capital appreciation by investing in diversified portfolio of equity & equity related instruments across market capitalisations.
The scheme will focus on undervalued companies that offer opportunities to generate superior capital returns from a medium to long term perspective.

The fund will follow bottom-up approach for stock selection process. It will pick stocks with a potential from fundaments perspective by employing “Fair Value” bases research process. Fair value is a measure of the intrinsic worth of a company. It will carefully select stocks of companies with robust business models and sustainable competitive advantages.

Further the scheme will adopt a holistic risk management strategy and has designed risk management strategies which are embedded in the investment process to manage these risks. Risk management strategy will endeavour to manage risks such as:

1. Quality Risk - Risk of investing in unsustainable / weak companies.
2. Price Risk - Risk of overpaying for a company
3. Liquidity Risk - High Impact cost of entry and exit
4. Concentration risk - Invest across the market capitalization spectrum and industries/ sectors
5. Volatility Risk - Volatility in price due to company or portfolio specific factors
6. Event Risk - Price risk due to a company / sector specific or market event

Further it will select indicative set of companies – whose growth potential is not fully priced by the market, quality companies that are going through near term challenges but with strong long-term potential and companies trading at a steep discount to their fair value.

---

Fund Manager Profile

The fund will be jointly managed by Mr. Jinesh Gopani and Mr Shreyansh Devalkar.

Mr Jinesh Gopani is a fund manager - Equity at Axis Asset Management Co. Ltd. He is a B. Com graduate and has done Master of Management Studies (MMS) from Bharati Vidyapeeth Institute of Management Studies and Research. He has a total work experience of about 12 years. Prior to joining Axis Asset Management Co. Ltd., Mr Gopani was associated with Birla Sun Life Asset Management Company Ltd. as a portfolio manager, Voyager India Capital Pvt. Ltd. as a Research Analyst, Emkay Shares & Stock Brokers Ltd. as a Research Analyst and Net worth Stock Broking Ltd. as a Research Analyst.

Mr Shreyansh Devalkar is Senior Fund Manager at Axis Mutual Fund. He comes with over 13 years of experience. Previously, Mr Devalkar served as a Fund Manager of Equities at BNP Paribas Asset Management, since October 2011. He was associated with BNP Paribas since January 2011. From July 2008 till January 2011, Mr. Devalkar was the Vice President of Investments at IDFC Asset Management Company Limited. He's also been associated with JP Morgan Services, Calyon Bank and Larsen and Toubro. Mr Devalkar earned an MMS in Finance from Jamnalal Bajaj Institute of Management Studies, Mumbai University and holds a Bachelor of Chemical Engineering degree from UDCT, Mumbai.

---

Fund Outlook

After evaluating the fund's objective and investment strategy, it is clear that AMF will have major exposure to equity and equity related instruments.

Given the global cues – The US–North Korea tension, downtrend of international oil prices, etc. its undercurrents might spill over to the Indian market as well. But a vital point to note is, the overall economic growth may not sustain without pick up in investment activity (which is hinged on internal and external factors).

Also, the slowdown in consumption (due to cash crunch, loss of jobs–especially in the unorganised sector, diminutive rise in salaries, slower employment growth and rural distress) when read with the investment growth number, highlights the negative output gap that exists in the Indian economy.

Growth in consumption and investment activity will be pivotal for India's economic growth. It is important for these activities to go up, while the Government expenditure is increasing at a healthy pace. Currently, it is only the Government spending that's propping up GDP growth rate and managing to offset the impact of demonetisation to an extent. As highlighted in the earlier section, private investments have grown at a dismal pace. Hence, long-term capital appreciation and growth would depend on how well the fund manager plays the opportunities and challenges across the market capitalization.

Hence, Axis Multicap Fundis expected to carry moderately high risk while achieving its investment objective.

---

DISCLOSURE AS PER SECURITIES AND EXCHANGE BOARD OF INDIA (RESEARCH ANALYSTS) REGULATIONS, 2014

About the Company including business activity

Quantum Information Services Private Limited (QIS) was incorporated on December 19, 1989.

QIS was promoted by Mr. Ajit Dayal with an objective of providing value-based information / views on news related to equity markets, the economy in general, sector analysis, budget review and various personal products and investments options available to the Public. It was the first company to start equity research on an institutional level.

‘PersonalFN' is a service brand of QIS and was started in the year 1999. In 1999, the Company registered the Domain name www.personalfn.com for providing information on mutual funds and personal financial planning, financial markets in general, etc and services related to financial planning and research in various financial instruments including mutual funds, insurance and fixed income products to customers. It offers asset allocation and researched investment recommendations through its financial planning services.

Quantum Information Services Private Limited (QIS) is registered as Investment Adviser under SEBI (Investment Adviser) Regulations, 2013 and having Registration No.: INA000000680. In terms of second proviso to Regulation 3 (1) of SEBI (Research Analysts) Regulations, 2014 the Company is not required to obtain Certificate of registration from SEBI.

Disciplinary history

There are no outstanding litigations against the Company, it subsidiaries and its Directors.

Terms and condition on which its offer research report
For the terms and condition for research report click here.

Details of associates

1. Money Simplified Services Limited;
2. PersonalFN Insurance Services India Limited ;
3. Equitymaster Agora Research Private Limited;
4. Common Sense Living Private Limited;
5. Quantum Advisors Private Limited;
6. Quantum Asset Management Company Private Limited;
7. HelpYourNGO Private Limited;
8. HelpYourNGO Foundation;
9. Natural Streets for Performing Arts Foundation;
10. Primary Real Estate Advisors Private Limited;
11. Rahul Goel;
12. I V Subramaniam.

Disclosure with regard to ownership and material conflicts of interest
 

1. Neither QIS, it's Associates, Research Analyst or his/her relative have any financial interest in the subject Company, except QIS receives fees for providing research to Quantum Equity Fund of Fund (QEFoF) which is Fund of Fund scheme managed by QMF and our associates has financial interest in the subject company.
2. Neither QIS, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one per cent or more securities of the subject Company, at the end of the month immediately preceding the date of publication of the research report.
3. Neither QIS, it's Associates, Research Analyst or his/her relative has any other material conflict of interest at the time of publication of the research report except that QIS is, as per SEBI (Mutual Funds) Regulations 1996, an associate / group Company of Quantum Asset Management Company Private Limited and Trustees and Sponsor of Quantum Mutual Fund (QMF) and to that extent there may be conflict of interest while recommending any schemes of QMF. However any such recommendation or reference made is based on the standard evaluation and selection process, which applies uniformly for all Mutual Fund Schemes. The payment of commission (upfront /annualized & trail), if any, for any Schemes by QMF to QIS is also at arm's length and as per prevailing market practices.
    

Disclosure with regard to receipt of Compensation

1. Neither QIS nor it's Associates have any compensation from the subject Company in the past twelve months.
2. Neither QIS nor it's Associates have managed or co-managed public offering of securities for the subject Company in the past twelve months.
3. Neither QIS nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject Company in the past twelve months.
4. Neither QIS nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months, except that QIS had receive fees for services under sponsorship agreement from Franklin Templeton Asset Management India Pvt. Ltd.
5. Neither QIS nor it's Associates have received any compensation or other benefits from the subject Company or third party in connection with the research report
    

General disclosure

1. The Research Analyst has not served as an officer, director or employee of the subject Company.
2. QIS or the Research Analyst has not been engaged in market making activity for the subject Company.
    

Subject Company means Mutual Fund Schemes

Quantum Information Services Pvt. Ltd. 103, Regent Chambers, 1st Floor, Nariman Point, Mumbai - 400 021. Tel: +91 22 6136 1200
Website : www.personalfn.com CIN: U65990MH1989PTC054667

© Quanutm Information Services Pvt. Ltd. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of PersonalFN is strictly prohibited and shall be deemed to be copyright infringement.

Disclaimer: Quantum Information Services Pvt. Limited (PersonalFN) is not providing any investment advice through this service and, does not constitute or is not intended to constitute an offer to buy or sell, or a solicitation to an offer to buy or sell financial products, units or securities. All content and information is provided on an 'As Is' basis by PersonalFN. Information herein is believed to be reliable but PersonalFN does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. PersonalFN and its subsidiaries / affiliates / sponsors or employees, personnel, directors will not be responsible for any direct / indirect loss or liability incurred by the user as a consequence of him or any other person on his behalf taking any investment decisions based on the contents and information provided herein. This is not a specific advisory service to meet the requirements of a specific client. Use of this information is at the user's own risk. The user must make his own investment decisions based on his specific investment objective and financial position and using such independent advisors as he believes necessary. All intellectual property rights emerging from this newsletter are and shall remain with PersonalFN. This is for your personal use and you shall not resell, copy, or redistribute this newsletter or any part of it, or use it for any commercial purpose. The performance data quoted represents past performance and does not guarantee future results. As a condition to accessing PersonalFN's content and website, you agree to our Terms and Conditions of Use, available here.

Quantum Information Services Pvt. Ltd. Regd. Office: 103, Regent Chambers, 1st Floor, Nariman Point, Mumbai - 400 021 Corp. Office: 103, Regent Chambers, 1st Floor, Nariman Point, Mumbai - 400 021. Email: info@personalfn.com CIN: U65990MH1989PTC054667

SEBI-registered Investment Adviser. Registration No. INA000000680, SEBI (Investment Advisers) Regulation, 2013

Add Comments

Comments
sspawar1662@gmail.com Nov 03, 2017 Weekly edition,equity,mutual fund
Goswamiseema65@gmail.com Nov 06, 2017 Futute not clear

 1