Axis Equity Fund – First Equity Fund from Axis AMC

Axis Equity Fund: Fund Facts

Fund objective	The fund seeks long-term capital appreciation from a diversified portfolio of stocks across the market capitalization spectrum. The fund will follow a bottom-up stock-picking system and focus on growth companies with sustainable business models.
NFO opening date	November 11, 2009
NFO closing date	December 08, 2009
Fund Manager	Chandresh Nigam
Benchmark Index	S&P CNX Nifty
Scheme reopens on	Not later than January 7, 2010
Plans Offered	Growth and Dividend options available. The Dividend option offers payout or reinvestment facilities
Minimum Initial Application amount	Rs 5,000 and in multiples of Re 1 thereafter
Minimum Additional Purchase Amount	Rs 100 and in multiples of Re 1
Entry load	NIL

Should You Invest?

Fund House Performance:

Axis AMC, a wholly-owned subsidiary of Axis Bank, is a new entrant in the fund management business. The start its operations, it filed four offer documents with the Securities and Exchange Board of India (SEBI) — Axis Equity Fund, Axis Liquid Fund, Axis Treasury Advantage Fund and Axis Tax Saver Fund. The company has already launched its two fixed income funds — Liquid Fund (Net Assets Rs 295 crores) and Treasury Fund (Net Assets Rs 1,177 crores). As the fund house is new we do not any parameter to rate it.

Fund Manager Performance:

Chandresh Nigam, 40, is an engineer and holds a PGDM from IIM-Calcutta and has an 18-year experience in equity markets. Prior to Axis he was advisor to TCG Advisory Services and has also served as Fund Manager, ICICI Prudential AMC.

Innovation factor:

The fund is just a diversified equity fund investing across all market caps. There are more than 100 funds in the market with this objective. So in innovation or a new offering it’s nothing new.

Final Verdict:

I would advise investment in a New fund Offer only if it has something new to offer. In this case, Axis AMC in itself is has no track record of managing any fund. So we cannot predict how the future of such funds would be or well the funds would perform going forward. Therefore, I would advise readers to stay away form Axis Equity Fund and to invest in existing funds with long track record of out-performance.

Amit

Hi Readers! I am Amit, the mind behind Apnaplan.com I am MBA from NITIE, Mumbai and BIT from Delhi University. This blog is my online diary where I write about my tryst with my investment decisions. In the 400+ posts on this blog you will find articles on Personal Financial Planning, Investments, Retirement Planning, Insurance, Loans, Fixed Deposits, Provident Funds, Stock Markets, Gold, Silver, Real Estate Investment, Credit Cards, Credit Score, Taxation, Inheritance Planning and Reviews on various Financial Products.