Ashwin Patni, Head, Product & Options, Axis Mutual Fund says the offering is different and is aimed at expanding the fund house’s bouquet of schemes. Patni says this is an ongoing effort of the fund house to create more relevant and complementary long term products for investors. Ashwin Patni says, “We have come up with a strategy which we think will be efficient and will suit many investors and that is why we have launched this value fund.”
This scheme is slightly different from the value schemes available in the market. “The approach in this value fund will be different from the traditional value investing in the market. You can say that we are targeting a hybrid (growth + value) type of strategy in this plan. The fund will not just focus on cheap companies and then wait for the market to recognize the value. We aim to select stocks based on much more than just valuations. We will also take into account the health of the business. After understanding why they may be at low valuations in the market, there will be a process of selection of companies. There will be internal filters to identify stocks for the portfolio. We will look for companies that have long-term growth potential, such as a change in cycling, a change in management or a change in strategy,” says Ashwin Patni.
However, mutual fund advisors are of the view that retail investors need to give some time before investing in this scheme. “With broad markets rallying over the past year, the value segment has made a strong comeback, outperforming growth stocks. More to bet on a value strategy in any hot/highly rated market It makes more sense to take advantage of the price potential. Quality undervalued stocks. This may have prompted AMC to enter this space with future prospects in the value segment,” said Mumbai-based AMFI-registered mutual fund distributor Rishabh Desai says.
“Axis AMC is currently growth oriented and has been following a successful growth-oriented strategy for a long time. This fund may not follow the traditional net worth style to avoid cyclicality and underperformance in the fund which is particularly Can be quite rewarding at times. Price segment. I would like to wait a few years and see how the fund’s strategy and performance fares in different market cycles. Currently, there are some good ones with proven long-term strategies There are quality existing value oriented funds which can be explored by investors if they want to invest in the value space,” says Desai.
Axis Mutual Fund has run a strong growth-oriented basket of funds over the years. Most of their growth-oriented equity schemes had suffered setbacks last year. Read more here:
several equity schemes of Axis Mutual Fund is underperforming. What should you do? However, the fund house has recovered in the last few months.
Funds at a Glance
NFO Open: 02-Sep-2021
NFO Closed: 16-Sep-2021
Minimum investment: Rs 5,000
Schemes: Vikas, IDCW
Exit Load (%): For units exceeding 10% of the investment, 1% will be charged for redemption within 365 days
Benchmark: S&P BSE 200 TRI