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.
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:
- Quality: ROE/RoCE, Debt/Equity ratio, Volatility
- Growth: Earnings improvement, Analyst forecasts, Change in profit margins
- Valuation: P/E, P/B ratio, Dividend Yield, Price to Sales Ratio
Model Performance Features
Some of the important features of the fund are:
- 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%.
- The 3-year rolling returns of the model have never been negative.
- 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:
- The strategy offers an option to investors looking for a diversified portfolio backed with a novel approach to investing.
- A unique offering for investment based on a fundamentally driven quantitative approach to investing.
- Offers an unbiased approach to portfolio management by defining an eligibility criterion for stocks to comprise the fund’s portfolio.
- It will provide a diversified equity portfolio through investments across market capitalizations & different sectors.
- 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
|Instruments||Minimum % of total assets (Indicative)||Maximum % of total assets (Indicative)||Risk Profile|
|Equity and Equity-related securities of companies based on quant model||80%||100%||High|
|Other Equity and Equity-related securities o||0%||20%||High|
|Units of REITs and InvITs||0%||10%||Moderate to High|
|Debt and Money market instruments||0%||20%||Low to Moderate|
About the Scheme
|Name of the fund||Axis Quant Fund|
|Fund launched by||Axis Mutual Fund|
|Asset Management Company||Axis Asset Management Company Limited|
|Type of scheme||An open-ended equity scheme investing in companies while following a quant model.|
|Investment Objective||The 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.|
|Benchmark||S&P BSE 200 TRI|
|Entry Load||Not Applicable|
-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|
|Fund Managers||Mr. Deepak Agrawal and Mr. Hitesh Das (For foreign securities)|
|Type||Minimum Installments||Minimum Amount|
|Monthly SIP||6||₹1,000 & in multiples of ₹ 1 thereafter|
|Yearly SIP||3||₹12,000 & in multiples of ₹ 1 thereafter|