Axis Quant Fund NFO – Investment Objective, Returns, Taxation, SIP Details

Manish Kothari
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Manish Kothari

Axis Quant Fund NFO

Axis Mutual Fund has announced the launch of the Axis Quant Fund. The fund is an open-ended equity scheme that will be investing in companies based on a fundamentally driven quant-based approach as per scheme documents.

The New Fund Offer (NFO) starts on 11th June 2021 and will end on 25th June 2021.

Investment Objective 

The scheme’s investment objective is to provide long-term capital growth to investors by investing in equity and equity-related instruments selected on the basis of a quantitative model. 

Investment Philosophy of Axis Quant Fund NFO

The philosophy aims to invest in stocks based on a Q-GARP approach. It involves focussing on making a selection of quality stocks with good growth numbers or prospects at reasonable prices or valuations to form a portfolio.

Some of the parameters that will be considered for evaluating the Q-GARP approach will be:

  1. Quality: ROE/RoCE, Debt/Equity ratio, Volatility
  2. Growth: Earnings improvement, Analyst forecasts, Change in profit margins
  3. Valuation: P/E, P/B ratio, Dividend Yield, Price to Sales Ratio

Model Performance Features

Some of the important features of the fund are:

  1. The quantitative model developed for the portfolio has managed to beat the benchmark's performance for 10 times in the last 14 years. The average outperformance has been around 7.6%.
  2. The 3-year rolling returns of the model have never been negative.
  3. Over the past 17 years, this quant model has outperformed its benchmark for 99.2% of the time.

Why invest in Axis Quant Fund NFO?

Here are some of the reasons why you should invest in this fund:

  1. The strategy offers an option to investors looking for a diversified portfolio backed with a novel approach to investing.
  2. A unique offering for investment based on a fundamentally driven quantitative approach to investing.
  3. Offers an unbiased approach to portfolio management by defining an eligibility criterion for stocks to comprise the fund’s portfolio.
  4. It will provide a diversified equity portfolio through investments across market capitalizations & different sectors.
  5. The portfolio aims to outperform across cycles in the market.

Who Should Invest?

This scheme is suitable for investors who are -

  • Interested in long-term capital growth.
  • Interested in investments in equity scheme following a quant model.
  • Recommended for investors with an investment horizon of 3-5 years & above.

Asset Allocation Pattern

InstrumentsMinimum % of total assets (Indicative)Maximum % of total assets (Indicative)Risk Profile
Equity and Equity-related securities of companies based on quant model80%100%High 
Other Equity and Equity-related securities o0%20%High
Units of REITs and InvITs0%10%Moderate to High
Debt and Money market instruments0%20%Low to Moderate

About the Scheme

Name of the fundAxis Quant Fund
Fund launched byAxis Mutual Fund 
Asset Management CompanyAxis Asset Management Company Limited 
Type of schemeAn open-ended equity scheme investing in companies while following a quant model.
Investment ObjectiveThe investment objective of the scheme is to provide long-term capital growth by investing in equity and equity-related securities of the companies determined on the basis of a quantitative model.
BenchmarkS&P BSE 200 TRI
Entry LoadNot Applicable
Exit Load

-If units of up to 10% redeemed or switched out within 12 months - NIL

- For units in excess of 10% redeemed or switched out within 12 months - 1% of applicable NAV

-If units are redeemed or switched out after 12 months - NIL


Taxed as Equity

-If units are redeemed within 12 months, gains are taxed as short term capital gain tax @15%

-If units are sold after 12 months, gains are taxed as long term capital gain tax @10% on the gains exceeding ₹ 1 lakh in a financial year

Minimum Application Amount ₹ 5,000 & in multiple of ₹ 1 thereafter
Minimum Additional Amount₹ 1,000 & in multiple of ₹ 1 thereafter
Plans Available
  • Regular
  • Direct
  • Growth
  • Payout of IDCW 
  • Reinvestment of IDCW
Fund ManagersMr. Deepak Agrawal and Mr. Hitesh Das (For foreign securities)

SIP Details

Type Minimum InstallmentsMinimum Amount
Monthly SIP6₹1,000 & in multiples of ₹ 1 thereafter
Yearly SIP3₹12,000 & in multiples of ₹ 1 thereafter

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