Axis Mutual Fund has launched Axis NIFTY Smallcap 50 Index Fund, an open-ended Index Fund, tracking the NIFTY Smallcap 50 Index. Managed by Jinesh Gopani, Head – Equity, Axis Mutual Fund, the fund will track the NIFTY Smallcap 50 TRI Index.
The NFO opens for subscription on February 21, 2022, and closes on March 7, 2022. The minimum application amount is Rs 5,000.
Axis NIFTY Smallcap 50 Index Fund and the underlying index
Rebalanced on a semi-annual basis, the NIFTY Smallcap 50 Index represents the top 50 companies selected based on average daily turnover from the top 100 companies selected based on full market capitalization in the NIFTY Small cap 250 Index. This index is computed using the free-float market capitalization method, wherein the level of the index reflects the total free-float market value of all the stocks in the index relative to a particular base market capitalization value.
"The Axis NIFTY Smallcap 50 Index Fund is structured in a manner to look for Quality, Scalability, and Stability in its portfolio. By relying on the market’s ability to identify niche high-performing growth businesses, the fund will be selecting the most liquid small caps by average daily turnover over a 6-month period. Furthermore, higher weights will be assigned to companies with larger float and securities will be excluded if the stock falls below the 130th rank based on full market cap," states the release.
Chandresh Nigam, MD & CEO, Axis AMC, said, “When it comes to Smallcap companies, who can be considered at the stepping stones to Midcaps and Largecaps, only good quality-oriented companies are able to make the transition. With the introduction of the Axis NIFTY Smallcap 50 Index Fund, we are hoping to drive alpha for our investors while maintaining focus on Quality, Scalability, and Stability in the portfolio. It aligns with our belief of offering quality products to investors that suits their risk appetite and need to yield long term wealth creation opportunities.”
