Axis Global Equity Alpha Funds of Fund: Investor's Guide

What is an NFO?

A New Fund Offer is available only for a timely period. It is because of this that investors can only purchase NAV units at discounted rates until the NFO lasts. The AMC holds the rights to close the NFO before its official closing date. Similarly, it holds the rights to extending the closing date of an NFO. NFOs are available on a first-come-first-serve basis and are released in a restricted number of units. Usually, the price per unit of an NFO is Rs. 10. So if you Rs.10,000 in an NFO, you will be allotted 100 units, subject to availability.

Once the NFO period is over, an open ended scheme is made available by the AMC for investors for the purpose of purchase and redemption. The newly launched mutual fund continues to buy and sell securities depending on the investment strategy and the financial objective it wishes to achieve. The NAV or net asset value of the fund, which stands at Rs. 10, may fluctuate depending on the market conditions. An AMC usually launches a new mutual fund if there is a demand for that fund in the market or to extend its range of products and complete the basket. Axis Mutual Fund has a NFO in the form of Axis Global Equity Alpha Funds of Fund which gives investors an opportunity to invest in the USA and other global economies. You now have the choice of investing in international markets through Axis Global Equity Alpha Funds of Fund.

Axis Global Equity Alpha Funds of Fund

Axis Global Equity Alpha Funds of Fund is an open ended fund of fund scheme investing in Schroder International Selection Fund Global Equity Alpha.

The investment objective of Axis Global Equity Alpha Funds of Fund is to provide long term capital appreciation by predominantly investing in Schroder International Selection Fund Global Equity Alpha, a fund that aims to provide capital growth by investing in equity and equity related securities of companies worldwide. The Scheme may also invest a part of the corpus in debt, money market instruments and / or units of liquid schemes in order to meet liquidity requirements from time to time.

NAV offer price

Since this is an NFO, the discounted rate of per unit of Axis Global Equity Alpha Funds of Fund is Rs. 10. The minimum investment amount to invest in Axis Global Equity Alpha Funds of Fund is Rs. 5000. The NAV which is offered at the discount rate may not remain the same when the fund becomes public for buying and selling.

Entry / Exit Load

There is no entry load for those seeking investment in Axis Global Equity Alpha Funds of Fund. However, an exit load of 1 percent is applicable on 90 percent of the investment if units are redeemed before 12 months from the date of purchase. There is no exit load on the remaining 10 percent of the investment. Also, if an investor decides to switch out of the scheme or withdraw the scheme, there are no charges applicable.

Direct Plan / Regular

Axis Global Equity Alpha Funds of Fund Regular Plan is available for all types of investors investing through a Distributor. On the other hand, Axis Global Equity Alpha Funds of Fund Direct Plan is only for investors who purchase /subscribe Units in a Scheme directly with the Fund and is not available for investors who route their investments through a Distributor.

Growth / IDCW Option

Axis Global Equity Alpha Funds of Fund is available for investors with two pay-out options. If you are investing in this scheme for the long run, you can consider the Axis Global Equity Alpha Funds of Fund Growth Option. Here, the capital appreciation garnered by the fund is invested back in the scheme.

Under IDCW option, IDCW will be declared (subject to deduction of tax at source, if any) at specified frequencies at the discretion of the Trustee, subject to availability of distributable surplus calculated in accordance with SEBI (MF) Regulations. On payment of IDCW, the NAV of the Unit under IDCW option will fall to the extent of the IDCW pay-out and applicable statutory levies, if any.

Axis Global Equity Alpha Funds of Fund aims at generating capital appreciation over the long term. Investors are expected to invest depending on their risk appetite and they must also seek the consultation of their financial advisors to determine whether the scheme is ideal for their investment goals.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.

Axis Global Equity Alpha Funds of Fund

An open ended fund of fund scheme investing in Schroder International Selection Fund Global Equity Alpha