Capitalise on Market Trends with Axis Multicap Fund

Mutual funds have been gaining greater traction among Indian investors, especially beginner investors. However, it can be hard to choose the right funds for your needs. Researching the features and benefits of various funds can help investors make more suitable choices.

A popular type of mutual fund that investors may potentially benefit from is the multicap fund. A multicap fund, as the name suggests, invests at least 25% of its corpus in stocks of all three levels of market capitalization (large cap, mid cap, and small cap). The remaining 25% of the corpus is invested as per the discretion of the fund manager.

One such fund that offers the multicap advantage is Axis Multicap Fund. Let’s take a closer look at the features and benefits and understand the Axis Multicap fund.

Overview

Axis Multicap Fund aims to provide returns by investing in stocks across all three market caps. This helps the fund capture the entire lifecycle of companies while allowing fund managers to pick the most promising companies from each category.

It provides exposure to a variety of sectors of the market helping to improve diversification and simultaneously managing risk associated with the investments.

Hence, the fund can be suitable for long-term equity investors looking for a fund that balances capital appreciation with risk.

Key Facts

Axis Multicap Fund was launched on 17th December, 2021.

The fund is benchmarked against the Nifty 500 Multicap 50:25:25 Index TRI. The fund is required to invest minimum 75% of their assets in equities and equity related instruments and also maintains the minimum allocation of 25% in each of the market segments ie. large-cap, mid-cap and small-cap.

Investors can choose from the Regular plan or the Direct plan. They are also provided with growth and dividend options. The minimum application amount is Rs. 100 and investments can be increased in multiples of Re. 1.

Benefits of Axis Multicap Fund

Large cap stocks can offer potential stability given that they are well-established and well-capitalized companies. Further, investing in mid cap and small cap companies can offer relatively higher potential for growth.

Moreover, different market caps tend to perform differently during diverse phases of the market. This means that staying invested across all these three market caps can help investors take a balanced approach. The markets are volatile and behaves differently during different times, the diversification provided by multicap funds helps in mitigating potential risks which arise during different market phases.

Conclusion

Multicap Funds can potentially help investors diversify across market caps and take a balanced exposure to the entire lifecycle of companies from the initial phase to the growth phase to the mature phase.

Large Cap:1st-100th company in terms of full market capitalization.
Mid Cap:101st-250th company in terms of full market capitalization.
Small Cap:251st company onwards in terms of full market capitalization

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

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.

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