Axis Mutual Fund Launches Axis Special Situations Fund
Dec 04, 2020
Axis Mutual Fund has launched Axis Special Situations Fund.
It is an open ended equity scheme following special situations theme, and seeks to invest in opportunities arising from special situations such as regulatory changes, new technologies, sector dynamics, company specific changes, consumer behaviour changes, and global events.
The investment objective of the scheme is to generate long-term capital appreciation by investing in mis-priced stocks facing special situations. The mis-pricing of stocks can occur due to companies facing special situations like regulatory/policy changes, management restructuring, technology led disruption and innovation or any temporary challenges in the operating environment.
However, there can be no assurance that the investment objective of the Scheme will be achieved.
Under normal circumstances, 80% to 100% of the funds portfolio will be invested in Equity & Equity related instruments of special situations theme. It can also invest upto 20% of its assets in other Equity & Equity related instruments.
The fund can also hold up to 20% of its assets in Debt & Money Market Instruments, whereas up to 10% of its assets can be held in Units issued by REITs and InvITs.
The Special situations can occur due to companies facing / undergoing issues like technology led disruption and innovation, regulatory/policy changes, management restructuring, or any prolonged cyclical challenges in the operating environment. The effect of these special situations on the companies’ business model could be medium to long term in nature.
Accordingly, Axis Special Situations Fund will look to invest in stocks that are:
- Benefiting from disruptive change (disruptors, enablers, adaptors) on account of technology, regulatory, or any other factors or
- Witnessing a significant turnaround potential from a prolonged cyclical slowdown.
Such opportunities can be available at company level, industry/sector level or market level.
Axis Special Situation fund is a multi-faceted, multi-cap, and multi-sector fund. It will invest a minimum of 70% of the total assets in disruptive themes (including 20-30% global disruptors), 10-30% in sector dynamic shifts, and in suitable opportunities based on events whenever such opportunities arise.
Axis Special Situations Fund’s performance will be benchmarked against Nifty 500 TRI (Total Return Index).
The fund will be managed by Mr Ashish Naik (for equity portion), whereas Mr Hitesh Das will be the designated fund manager for managing foreign securities the scheme. The Fixed Income Fund Managers of the Mutual Fund will be involved in management of the Debt Component of the Scheme.
The NFO opens for subscription on December 04, 2020, and closes on December 18, 2020. The scheme will reopen for continuous Sale and Repurchase within 5 business days from the date of allotment.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Rs 1 thereafter.
The fund offers Regular Plan and Direct Plan having Growth Option and Dividend Option (Dividend Re-investment and Dividend Pay-out facilities).