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New Delhi: Axis Mutual Fund has announced the launch of Axis Nifty Midcap 50 Index Fund, an open-ended index fund tracking the Nifty Midcap 50 Index. The new fund offer (NFO) opened for subscription on Thursday and will close on 21 March.
The Nifty Midcap 50 Index consists of top 50 companies based on full market capitalization from NIFTY Midcap 150 index with preference given to those stocks on which derivative contracts are available on National Stock Exchange (NSE). The index is rebalanced on a semi-annual basis (March and September) using average data of the last six months.
The Axis NIFTY Midcap 50 Index Fund will invest in 50 most liquid midcap stocks, giving preference for stocks where future and options ((F&O) contracts are traded on NSE. It presents a diversified portfolio for investors that focuses on sustainability for picking stocks.
The rank of any F&O constituent in the Nifty Midcap 150 Index based on full market capitalization is among the top Nifty Midcap 30. In case of any shortfall (in the event that F&O stocks are not available for inclusion in the index), securities with the highest average daily turnover will be selected from the top 30 non-F&O constituents in the Nifty Midcap 150 Index based on full market capitalization.
The Axis Nifty Midcap 50 Index Fund follows a rule-based passive investing strategy that endeavours to deliver market-linked returns.
Chandresh Nigam, managing director and chief executive officer, Axis AMC said, “In the broader market, midcaps have consistently outperformed making them ideal for the long-term wealth creation. Along with an attractive entry point for long-term investors, they also offer a favourable risk-reward quotient."
The minimum application amount is ₹5,000 and in the multiples of Re 1, thereafter. There will be an exit load of 1% if the units are redeemed or switched out within seven days from the date of allotment, and nil, thereafter.
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