Axis Mutual Fund, has announced the launch of its first equity fund called Axis Equity Fund. This is a diversified equity fund benchmarked to the S&P CNX Nifty.

The new fund offer (NFOs) open for subscription from November 11, to December 8, 2009. It will re-open for on-going purchase and redemption on January 7, 2009.  The face value of the new issue will be Rs 10 per unit. (View - New Fund Offers open NOW)

Commenting on the launch Mr. Rajiv Anand, MD & CEO, Axis AMC said, “The uniqueness of the offering will not be the product per se but in the way the product is communicated and distributed. We aim to offer total investment solutions to consumers and not just individual products. Our research has shown that there is a huge demand for simplicity and trust in financial services. We therefore chose to launch a simple but effective product in the category of diversified equity funds.

“Axis Equity Fund is a solution designed for a consumer who is seeking a balance between deciding the best investment option that helps him provide for his family’s future and ensuring that he has invested wisely, thus helping him enjoy the present with his family” said Mr. Karan Datta, National Sales Head.

Mr. Chandresh Nigam, the designated Fund Manager for the scheme and a stock market veteran further commented, “We are aware that Axis Equity Fund is not just a diversified equity fund that has to perform but also more importantly, has the potential answer to a long term solution that the investor is seeking. Managing risk therefore is very critical. It goes without saying that the fund will be based on a rock solid and process oriented approach. Our proprietary four step investment process will help us manage associated risks, yet the wealth of wisdom that comes from an experienced team of equity professionals will not be discounted.”

The scheme offers growth and dividend options. Dividend option will further offer dividend payout and reinvestment facility.

The minimum investment amount will be Rs 5000 and in multiples of Re 1 thereafter and Rs 100 in multiples of Re 1 thereafter for additional purchase of units. Investors can apply through a lump sum purchase or through Systematic Investment Plans during the NFO.

Load Structure : Entry Load - Nil. Exit Load of 1% if units are redeemed / switched - out within 1 year from the date of allotment of units.

Asset Allocation: The scheme will invest 80-100% in equity and equity related instruments .It would invest 0-20% in debt and money market instruments, including securitized debt (excluding Foreign Securitized Debt)  up to 20% of the net assets of the Scheme. The scheme may invest in derivatives up to 100% of the net assets of the scheme and in foreign securities (including ADR’s/GDR’s/foreign equity & debt securities) up to 40% of the net assets of the scheme.

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