A very first worldwide feeder investment fund launched by Axis Mutual Fund called as Axis Global Equity Alpha Fund of Fund. This means that Axis Asset Management Company (AMC) will invest almost all the funds in Schroder International Selection Fund Global Equity Alpha. A brand new offering through which domestic investors can invest in the global markets.
Currently Indian indices are valued much higher despite the fact that the economy has taken a severe hit due to Covid-19. Some asset management firms have already started investing in global market directly or through funds of fund scheme. Let us understand features, benefits and advantages of Axis Global Equity Alpha Fund of Fund and why you should seriously thing to invest in this New Fund Offer (NFO).
What is a Fund to Fund?
Fund of fund means a pooled fund investing in other mutual fund scheme. The primary objective is to minimize risk and achieve diversification in funds. Let us understand with respect to Axis Global Equity Alpha Fund of Fund. This fund aims to invest in Schroder International Selection Fund to achieve global equity diversification and minimize drawdown of the fund.
About Axis Global Equity Alpha Fund of Fund
Axis AMC has been at the forefront in creating robust and innovative investment process which has the potential to deliver great returns in the long term. Indian money entirely invested in additional fund situated outside India are known as international feeder funds. In this case, Axis Global Equity Alpha Fund of Fund will be a feeder fund. It is the very first global dedicated feeder fund introduced through their AMC; an open-ended Axis Global Equity Alpha Fund of Fund scheme investing in Schroders International Selection Fund Global Equity Alpha.
Their scheme would invest around 95% of their assets to Schroder International Selection Fund Global Equity Alpha. The remaining asset allocation would be in money market or debt instruments. CAGR (Compounded Annual Growth Rate) of underlying Schroder fund offers 11%-14% returns on investment. This returns are almost equal to MSCI global Index.
Schroders is a global asset management company running its operations in 35 locations across European countries, Asia, Middle East, America. It manages 580+ funds globally and has GBP 525.8 billion asset under management with over 200 years of experience. Schroder owns 25% holding in Axis AMC.
Schroder philosophy perspective is always to look ahead, explore different market. They are actively enhancing with changing markets. They are well known for Environmental, Social and Governance (ESG) risk assessments and fundamental risk analysis before investing in any equity stocks.
Axis Global Equity Alpha Funds of Fund (FoF) will have direct as well as regular investment plans along with dividend and growth options. You will have the facility of dividend reinvestment and dividend pay-out option. Let us look into some additional information of the fund.
|Fund Name||Axis Global Equity Alpha Fund of Fund|
|Scheme Type||An open-ended fund of fund investing in Schroder International Selection Fund Global Equity Alpha|
|Fund Manager||Hitesh Das and R. Sivakumar|
|Benchmark||MSCI World (Net TR)|
|Minimum Purchase Amount||INR 5000|
|Minimum Additional Investment||INR 100|
|Exit Load||NIL up to 10% units are redeemed or perhaps switched on or before 12 months from the date of allotment of units,|
|Minimum Redemption Amount||No minimum number of units or units for redemption|
Features of Axis Global Equity Alpha Fund of Fund
Let us see some highlights about Axis Global Equity Alpha Fund of Fund features.
1) London based Schroders Global Equities team will manage the research and investment in equity shares.
2) Top 10 holdings of the underlying fund assets are allocated in companies like Amazon, Microsoft Corporation, Alphabet, Apple, Visa, Facebook, Adobe, Unitedhealth Group, Intuit, Jpmorgan Chase.
3) This scheme invests in a lightweight, higher conviction portfolio of widely diversified sectors and geographically equity shares
4) A diversified global investment equity as compared with country specific equity feeder. Diversification is good to reduce the risk of investment.
5) This fund will use fundamental research to find quality and sustainable growing companies for investment.
Benefits of Axis Global Equity Alpha Fund of Fund
Before investing in any funds you should know the real benefits of it. Let us view Axis Global Equity Alpha Fund of Fund benefits to understand more in details.
1) Taxation for International funds are treated as debt funds which is 20% with the advantage of indexation following a holding period of three years.
2) From Indian you can unlock global opportunities around geographies with worldwide companies like Amazon, Apple, Facebook, Visa, Microsoft and so on.
3) It scheme is more suitable for people that are seeking capital appreciation from global equity market over the long term and reducing investment risk through diversification. Return on investment is greater than MSCI global Index.
Advantages of Investing of Axis Global Equity Alpha Fund of Fund
It is important to understand Axis Global Equity Alpha Fund of Fund advantages before investing your hard earned money. Let us see in detail below.
1) India is a home to international companies to grow their businesses. India is termed as fastest growing economy but unfortunately companies investing in India are unavailable on India’s stock exchange. This scheme will allow you to invest in international equity markets hassle free.
2) Bullish trends arise at different times for different markets. This scheme can very well take the advantage of bullish market and provide you greater returns than MSCI global Index.
3) Worldwide investment opportunities give the benefit of currency diversification.
There is limited international investment exposure for domestic investors. Axis Global Equity Alpha Fund of Fund is well suitable for targeting global investment opportunities. One of this best thing about this fund is that their investments allocation is combination of equities which are listed on wide range of stock exchanges. This scheme also suits people who want to invest in equities with low risk and high returns perspective. So overall, it’s a good investment opportunity for Indian investors once can think of it. Do let us know in your feedback in the below comment box and to learn more, click here.
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