Axis India Manufacturing Fund: An Opportunity to Participate in India?s Economic Transformation

India is one of the fastest growing economies in the world, currently ranking 5th in terms of GDP . India is expected to become the third-largest economy globally with a $5 trillion GDP by 2027 .

India’s manufacturing journey has come a long way and since last few years, a substantial impetus is being provided to the manufacturing sector with a greater focus by the government through larger budgets, policy reforms such as Atmanirbhar Bharat, Make in India 2.0, and various PLI schemes.

Today, India aims to boost the contribution of the manufacturing sector to the overall GDP by focusing on exports and FDI inflows. India aspires to become the world’s preferred manufacturing hub. These aspirations are gradually shaping into reality, thanks to huge demand for consumption and augmented supply.

Our cost competitiveness makes India more attractive than other manufacturing countries like China, Western Europe, Australia, the US, and Canada. The labour and tax reforms are the key to making India a global manufacturing hub.

Overall, the India manufacturing theme is fast evolving into its own growth story. The sector currently stands at $440bn in FY23 as compared to the pre-Covid level of $330bn in FY19.

Therefore, this may be the right time for investors to capture the vast potential of the sector through Axis India Manufacturing Fund.

Axis India Manufacturing Fund Investment approach

Axis India Manufacturing Fund aims to invest in quality stocks. It will try to tap the companies with sustainable growth potential and invest across market capitalizations. The fund will be actively managed and will use a 3-pronged strategy to identify stocks:

1. Manufacturing companies investing in factory equipment and R&D to improve production capabilities

2. Industries with rising demand from domestic consumption and premiumization of products.

3. Focus on sectors that are becoming net exporters in India

Key Features of Axis India Manufacturing Fund

1. Axis India Manufacturing Fund is an open-ended equity scheme that invests in India’s manufacturing sector.

2. The fund will have the opportunity to invest across 11 sectors, comprising 66 industries, across market capitalization, in both public and private sector enterprises. This will ensure diversification within the fund.

Investments would be made in sectors including Automobiles and auto ancillary, Chemicals, Pharmaceuticals, Textiles, Electrical and Electronics, Food and Beverages, Consumer Durables, Building materials, Defense and Aerospace, Capital Goods and Engineering, and Industrials.

3. The NFO will be open to investors from 1st Dec 2023 to 15th Dec 2023.

Why invest in Axis India Manufacturing Fund?

1. Rides on the emerging India manufacturing theme
2. Offers adequate diversification by sector and market cap
3. Potential for long-term wealth creation
4. Access to manufacturing theme with single fund
5. Focus on creation of quality portfolio

Who is the fund ideal for?

Axis India Manufacturing Fund is a thematic fund playing out on the emerging manufacturing growth potential in India. Thematic funds focus on a specific theme or sector. For instance, an infrastructure-themed fund will invest in sectors like real estate, roads, railways, steel, cement, etc.

Thematic funds are concentrated on a single idea/theme which may take time to potentially unfold. Therefore, they are ideal for informed investors who have a very high risk appetite.

Along similar lines, Axis India Manufacturing Fund is ideal for investors seeking long-term capital appreciation, who have a high-risk appetite, and an investment horizon of over 5 years.

Investors can invest a minimum of Rs. 500 and in multiples of Rs 1 thereafter in case of lumpsum investment. They can invest through Axis MF's SIP app with a minimum of Rs. 100 and in multiples of Rs. 1 thereafter.

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

----------------------------------------------------------------------------------------------------------------------------------------------------
Disclaimer and Risk Factors

Source: www.makeinindia.com, IBEF Report – May 2023, india.gov.in, Avendus Spark - 31 August 2023, www.rbi.org.in/Scripts/BS_SpeechesView.aspx?Id=1385

Data as on 30th September 2023.

Disclaimer: Past performance may or may not be sustained in the future. Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time.

Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s).

This document represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time.

Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh).Trustee: Axis Mutual Fund Trustee Ltd.

Investment Manager: Axis Asset Management Co. Ltd. (the AMC).

Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme.

(The product labelling assigned during the New Fund Offer is based on internal assessment of the Scheme Characteristics or model portfolio and the same may vary post NFO when actual investments are made)

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.