Axis Mutual Fund, asset management companies in India announced the launch of Axis NIFTY Midcap 50 Index Fund (an open ended Index Fund tracking the NIFTY Midcap 50 Index), today.
Managed by Jinesh Gopani, Head – Equity, the fund will track the NIFTY Midcap 50 Index TRI.
The NFO opens for subscription on March 10, 2022 and closes on March 21, 2022. The minimum application amount is Rs 5,000 and in multiples of Rs 1, thereafter.
Exit load is as mentioned below:
If redeemed or switched out within 7 days from the date of allotment: is 1 percent
If redeemed / switched out after 7 days from the date of allotment: Nil
Nifty Midcap 50 Index
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 company said in a statement.
Key highlights
The Axis NIFTY Midcap 50 Index Fund invests in 50 most liquid midcap stocks, giving preference for stocks where 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 highest average daily turnover will be selected from top 30 non-F&O constituents in 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, it said. Investors can look to invest through various systematic options like SIPs, STP’s to adopt a more disciple approach or invest via lumpsum.
Chandresh Nigam, MD & CEO, Axis AMC said, “In the broader market, midcaps have consistently outperformed making them ideal for long term wealth creation. Along with an attractive entry point for long term investors, they also offer a favourable risk-reward quotient. The introduction of the Axis NIFTY Midcap 50 Index Fund, aligns with our belief of offering quality products to investors that suits their risk appetite. We believe it will be a notable addition to our portfolio of passive offerings.”
