Facts-Pros-Advantages-Benefits of Special Situations Fund-Wikipedia of Finance

Facts, Benefits and Advantages of Axis Special Situations Fund


Axis Mutual Fund has recently launched the Axis Special Situations Fund. This is an open-ended equity new fund offer (NFO) focusing on investing in disruptive innovation prospects. The fund will likely be investing across different market capitalization ranges, for both domestic as well as global markets. Research and analysis of overseas investments will be conducted through Schroders Asset Management company.

Financial markets are usually very slow to recognize disruptive innovation and the effect of disruptive change is often ignored by people. Due to unanticipated changes, there is significant difference between actual company result and market expectations. Axis AMC through Axis Special Situations Fund creates unique equity investments which concentrates on capturing opportunities across global markets.

What is “Special Situation” in the Investment?

In finance, a special situation means unusual changes or events that make people interested to buy a company stock to benefit from its price rise. Special situations can either be the change in government policies, or any global event like the current pandemic, micro / macro changes at the company level, new product announcements, customer shift, change in management and more.

Special Situations Funds are one of the many types of mutual funds. In a Special Situations Fund, the Fund manager performs research and analysis to understand if a particular “special situation” may be worthwhile. If the forecast returns are attractive, fund managers can prefer to invest in that company with the intension to gain higher returns on investment.

Let us take an example of The Walt Disney Company to understand this better. Everyone is aware that customer preference has shifted from television boxes to video apps due to their wide range of advantages. A special situation was developed in April 2020 for The Walt Disney Company. The company had announced its plans toward integrating Hotstar with its newly streaming brand Disney+. This announcement had created a special situation investment opportunity for investors. Walt Disney Company was trading around $93 in April 2020 and reached to $154 in December 2020. This is around 66% of returns on investment within 9 months where world businesses were impacted due to Covid-19 crisis.

Axis Mutual Fund has thought well ahead of time while introducing the Axis Special Situations Fund. Not only does the fund adopt a disruption theme, one that is rarely spoken about in the Indian context, but also provides investors with an opportunity like never before!

What is Disruptive Innovation?

In business, disruptive Innovation means the new technologies that greatly affects the way an industry or market functions. Only a few revolutionary developments tend to be disruptive in nature. In simple words, disruptive innovation means new development which produces a new market and valuable network apart from existing market and network.

Axis Special Situations Fund aims to invest in businesses which are part of disruptive innovation. Disruptive innovation can either be innovation inside present business, companies adapting to new customer distribution or adapting disruptive changes, transport business adapting change to electrical vehicles, event based changes and many more.

Let us take an example of some companies to better understand it. Few years back Reliance Industry had launched Jio Telecommunications Company which is a purely disruptive innovation. This is because the company had focused towards a new market, a new network, and a new sector. Jio is scaling the present business with innovation and is focusing towards a better user experience to ensure maximum returns.

About Schorders & Axis AMC

Schroders is leading globally in asset management and operating in 37 countries with more than £526 billion assets under management. Schroders and Axis Asset Management Company are part of the joint venture. Axis AMC (Asset Management Company) manages products like: mutual funds, portfolio management services and alternative investments. It is one of the fastest asset management company in India.

Axis Special Situations Fund – Investment Details

Special Situations Fund is launched following the recent launch of Axis Global Equity Alpha Fund of Fund. Axis Special Situations Fund will have regular as well as direct investment plans along with growth and dividend options. You will have the facility of dividend pay-out and dividend reinvestment option. Let us look into some additional information of this fund.

Fund NameAxis Special Situations Fund
Scheme TypeAn open-ended equity scheme
NFO Launch DatesDecember 4, 2020 (Open Date) to December 18, 2020 (Close Date)
BenchmarkNifty 500 TRI Index
Fund ManagerAshish Naik, Hitesh Das
Minimum Application / Purchase Amount₹5,000 (Indian Rupee)
Minimum Additional Investment₹100 (Indian Rupee)
Entry LoadNil
Exit LoadNIL up to 10% units are redeemed or perhaps switched on or before 12 months from the date of allotment of units.
Minimum Redemption AmountNil
Plans & OptionsRegular Plan and Direct Plan with Growth and Dividend Option (Pay-out, Dividend Reinvestment Option)

Advantages of Axis Special Situations Fund

1. The important value of this fund is that, it can invest in Indian stocks and globally listed stocks. This opens the door to invest globally and grab advantage of stock price rise

2. Research and analysis of overseas investment will be assisted by Schroders Investment Management Company’s disruption philosophy

3. Axis Special Situations Fund provides an opportunity to Indian investors towards investing in disruptive innovation stocks

4. Axis Fund not only invest in multi-sector companies but also invest in large-cap, mid-cap and small-cap companies. This allocation strategy benefits to take invest in wide range of stocks

5. Fund will make investment according to the occurrence of special situations

Benefits of Axis Special Situations Fund

1. Investors can grab benefits by invest in special situations theme through this open ended equity fund focusing on disruptive opportunities.

2. Interruption is accelerating significant innovation. Investors get important benefit of creating long term value for their investments.

3. Investing in Axis Special Situations Fund means opportunity to invest in worldwide markets and wide range of market capitalization.

4. This scheme benchmarks its efficiency with Nifty 500 TRI index. Their index signifies top 500 listed companies.

5. This fund is well suitable for people who are looking for capital appreciation over long term and want to invest in overseas securities.


Innovation is everywhere even in the Mutual Fund businesses. Now it’s your time to think – do you want to invest in mutual fund that is innovating their present business? Axis Special Situations Fund is intended to provide wide market exposure to reduce your investment risk and offer higher returns. Here is your chance to invest in best mutual funds which are adapting disruptive changes in their business model.

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