Left to Right – Mr. Hitesh Das – Fund Manager, Mr. Shreyash Devalkar – Head of Equity, and Mr. Ashish Gupta, CIO, Axis Mutual Fund at the press conference launch of Axis Consumption Fund.
Highlights:
• Category: Thematic
• Benchmark: NIFTY India Consumption TRI
• Fund Managers: Mr. Hitesh Das, Mr. Shreyash Devalkar, and Ms. Krishnaa Narayan(For Overseas Securities)
• NFO open date: 23rd August 2024
• NFO close date: 06th September 2024
• Minimum Application Amount: Rs.100 and in multiples of Rs.1/- thereafter
• Exit Load:
o If redeemed/switched out within 12 months from the date of allotment:
For 10% of the investment: Nil
For the remaining investment: 1%
o If redeemed/switched out after 12 months from the date of allotment: Nil
• Typical Investment Horizon: 5+ years
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Mumbai, August 22, 2024: India’s economic landscape is undergoing a rapid transformation fuelled by rising incomes, urbanization, and burgeoning middle class. To harness the power of India’s thriving consumption sector and to offer investors a strategic opportunity to benefit from the country’s escalating consumer demand, Axis Mutual Fund, one of the fastest-growing fund houses in India, proudly announces the launch of Axis Consumption Fund.
The New Fund Offer (NFO), benchmarked against the NIFTY India Consumption TRI, will open for subscription from 23rd August to 6th September 2024. The fund will be managed by Mr. Hitesh Das, Mr. Shreyash Devalkar, and Ms. Krishnaa Narayan (For Overseas Securities), who are committed to leveraging this thematic investment opportunity.
Embracing India’s Consumption Potential
India’s consumption story is poised to be a major economic driver, supported by favourable demographics, rising disposable incomes, and urbanization. With a young and aspirational population, consumer spending in India is expected to grow significantly in the coming years. The Axis Consumption Fund aims to provide a diversified portfolio that reflects the broad spectrum of India’s consumption-driven sectors, including FMCG, Auto, Telecommunication, Healthcare, Realty, and more.
“The evolving consumption patterns in India are a crucial aspect of India’s growth trajectory. As our population’s aspirations grow and spending power increases, companies in this space are positioned for sustained growth”, observed Mr. Ashish Gupta, Chief Investment Officer, Axis AMC. “The Axis Consumption Fund offers investors an opportunity to participate in this unfolding trend and aims to build a robust portfolio that captures this dynamic growth. This fund not only reflects the current consumption trends but also anticipates future growth drivers, positioning our investors to reap the benefits of India’s economic transformation. This thematic approach aligns with the fundamental drivers of our nation’s progress, potentially offering a unique avenue for long-term wealth creation.”
The Axis Consumption Fund, specialized to capitalize on India’s dynamic consumption sector, providing investors with a well-rounded exposure to industries poised to benefit from India’s ongoing structural and cultural shifts in consumer behaviour. The fund will follow a bottom-up approach with a quality-focused style of investing, capturing the emerging trend in the consumer story.
With a strategic focus on sectors beyond FMCG, like consumer discretionary, retailing, auto, and realty, the Axis Consumption Fund will offer a diversified investment approach aimed at capturing the growth potential driven by the flourishing Indian consumer market. Investors can expect to participate in the growth story of India’s expanding middle class and increasing consumer spending, all while benefiting from the fund’s expert management and sector-specific insights.
Strategic Focus Areas:
• Innovation: Innovation is not limited to Tech industry, but there is much innovation happening within the consumption segment (sports energy drinks, cold pressed oils, etc.)
• Formalization: Increased market share with the shift towards organised market in sectors such as apparel, tiles, and sanitary ware, textile, footwear, jewellery, etc.
• Urbanization: The shift towards urbanization has led to changing life styles and work stylesimpacting sectors like Real Estate and increased wallet share of Consumer Discretionary
• Penetration: Massive scope for online penetration from categories like online fashion and grocery, quick commerce
• Premiumization: Consumers are upgrading to packaged, branded or higher priced offerings, or adding new products or services to their consumption routine. E.g. Auto, FMCG, Beauty, and Personal Care
“India stands at a pivotal moment in its economic journey. As we navigate through global uncertainties, our domestic market’s resilience and growth potential have never been more evident,” explained Mr. B. Gopkumar, MD & CEO, Axis AMC. “The Axis Consumption Fund is our strategic approach to one of the most compelling narratives in our country today – the evolution of our consumer landscape. This fund aims to capture the value created by India’s expanding consumer base, their changing preferences, and increasing purchasing power. We have a great team of fund managers with an extensive experience in equity markets, who will manage the fund. Under their guidance, the fund aims to build a diversified portfolio offering investors a strategic investment avenue that reflects the opportunities in the Indian market.” added Mr. B. Gopkumar.
For detailed information on the investment strategy and to view the Scheme Information Document (SID)/Key Information Memorandum (KIM), please visit www.axismf.com.
Axis AMC is one of India`s fastest growing assets managers offering a comprehensive bouquet of asset management products across mutual funds (https://www.axismf.com/), portfolio management services and alternative investments (https://www.axisamc.com/homepage).
Disclaimer: This press release represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s).
The information set out above is included for general information purposes only and does not constitute legal or tax advice. In view of the individual nature of the tax consequences, each investor is advised to consult his or her own tax consultant with respect to specific tax implications arising out of their participation in the Scheme. Income Tax benefits to the mutual fund & to the unit holder is in accordance with the prevailing tax laws as certified by the mutual funds consultant. Any action taken by you on the basis of the information contained herein is your responsibility alone. Axis Mutual Fund will not be liable in any manner for the consequences of such action taken by you. The information contained herein is not intended as an offer or solicitation for the purchase and sales of any schemes of Axis Mutual Fund.
Stock(s) / Issuer(s)/ Top stocks, if any, mentioned above are for illustration purpose and should not be construed as recommendation.
Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC). Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
