Why Axis Mutual Funds Dominated FY 2019-2020: The Power of Disruption
Axis Mutual Funds stand out in the investment landscape, achieving significant success in the fiscal year 2019-2020. This article delves into the strategic reasons behind their performance and introduces their latest venture, the Axis Special Situations Fund, which aims to capitalize on disruptive technologies and companies.
Axis Mutual Funds: A Track Record of Success
Axis Mutual Funds have consistently been at the forefront in the mutual fund industry, performing exceptionally well across various categories including large-cap, mid-cap, and small-cap. This success is attributed to their unique investment approach, specifically their focus on growth stocks.
The Axis Investment Philosophy: Investing in Growth Stocks
Axis fund managers follow a strategy of investing in businesses that are experiencing rapid growth, regardless of their current valuations. This approach has proven to be highly effective, enabling the fund to outperform the benchmark indices consistently.
An Innovative New Offering: The Axis Special Situations Fund
To address the changing business environment and emerging disruptions, Axis AMC introduced the Axis Special Situations Fund. This fund aims to identify and invest in companies that are driving or enabling disruptions in various industries, ranging from technology, education, and healthcare to transportation and retail.
Investing in Disruptions
The common denominator among disruptors such as Tesla, Amazon, Google, and even local Indian companies like Reliance and Paytm is a strong focus on technology. Companies that do not adapt to technological changes struggle to survive. This is exemplified by the transformation of Nokia and the rise of digital technology-driven companies like TCS and Infosys.
The Fund Structure and Key Features
Axis Special Situations Fund is an open-ended thematic equity scheme designed to capitalize on special situations like regulatory changes, new technologies, and global events. The fund's primary goals are:
To invest in disruptive companies that are at the forefront of change To include sectorial and event-based companies in the portfolio To allocate 30% of the corpus to global companies managed by Schroder Investment Management LimitedThe benchmark for this fund is the Nifty 500 TRI Index, representing the top 500 companies listed on the NSE.
Returning to the India market, Axis AMC launched the New Fund Offer (NFO) on December 4, 2020, with a closing date of December 20, 2020. This fund is managed by experienced professionals:
Ashish Naik with 10 years of experience, managing funds like Axis Nifty 100 Index fund, Axis Nifty ETF, and Axis Triple Advantage Fund Hitesh Das, managing global investments and overseeing Axis Growth Opportunity Fund and Axis ESG Equity FundConclusion
As an investor, it is crucial to focus not only on historical performance but also on future growth prospects. The investment in disruptive companies offers a formidable opportunity. The Axis Special Situations Fund has significant potential and can be an excellent addition to any diversified portfolio. Consider this NFO as a strategic move to capitalize on the ever-changing business landscape and technological advancements.