NFO Launch: Axis Equity ETFs FoF; Check Out Details

Axis Mutual Fund has introduced Axis Equities ETFs FoF, an open-ended fund of fund strategy that invests primarily in domestic equity ETF units. The NFO will monitor the Nifty 500 TRI benchmark and seek alpha by investing in domestic equities ETFs based on the fund manager's top-down investment strategy. Because different sectors and market segments perform differently at different periods, the investing methodology of Axis Equity ETFs FoF is designed to distribute dynamically among market cap and sectoral/thematic passive strategies. The fund is managed by the Shreyash Devalka.

This provides investors with the benefit of risk diversification by spreading their assets across numerous equity ETFs. Furthermore, the plan will make every effort to invest in and maintain a domestic ETF exposure of more than 95% of net assets at all times. As a result, the tax treatment will be similar to that of equity mutual funds.

According to the announcement, in addition to providing exposure to all equity ETFs in the market, The fund eliminates the risk of security selection while striving for low tracking error. Given the mutual fund structure, investors can invest through a variety of systematic alternatives such as SIPs, STPs, and lump sum investments.

NFO Details

The application fee is Rs 5,000 at the most. The fund is open for subscription since February 4, 2022, and will close on February 18, 2022. It will impose a 1% exit fee if investments are redeemed within 15 days, and zero after that.