Axis mf nfo: Axis Mutual Fund has launched Axis Nifty 500 Momentum 50 Index Fund. It is an open-ended index fund, which will track Nifty500 Momentum 50 TRI. This new fund offer (NFO) will be open for investment from 24 January 2025 to 7 February 2025. This fund has been introduced especially for investors who aim to make profits in the market through Momentum-based investment.
Axis MF: Who can invest?
If you want to add Momentum Strategy to your portfolio and avoid the problems faced in the selection of stocks, then this NFO may be right for you. This passive investment option of Axis Mutual Fund offers a better option of Momentum Investing at a low cost.
This scheme aims to give investors a return based on the performance of the Nifty 500 Momentum 50 TRI index. This means that this scheme will follow the speed and trend of that index and will try to give returns to investors accordingly. However, the performance of the scheme may have trekking error (ie the difference between index and the return of the scheme). In addition, it is also not necessary that the schemes are able to fully achieve their investment objective. There are risks in the investment market, so it is important to understand all the information well before investing in it.
AXIS MF: How many rupees to start investing?
The minimum investment amount has been kept at just Rs 100, after which one can invest in multiple multiple. The scheme invests in shares associated with the Nifty 500 Momentum Index and adopts a passive investment strategy. Redeem or switch out of allotment date will take an exit load of 0.25%. However, no exit load will be taken after 15 days after redeem or switch out.
Axis nifty500 momentum 50 index fund: a look at risks
Risk related to passive investment:
This scheme tracks the performance of Nifty500 Momentum 50 Index. If the market declines, the performance of the scheme may be affected. The scheme invests in all stocks of the index, whether they are correct in terms of investment.
Tracking error risk:
The performance of the scheme may be different from its index. This difference is called tracking error and can cause: Delay in purchase and sale of stocks, maintaining corporate actions, expenses and fees, maintaining cash balance.
Tracking difference:
The difference between the index and the returns of the scheme will be told on the website of AMC and AMFI every month.
Risk related to index:
Nifty500 Momentum 50 Index consists of 50 stocks, including mid and small-cap stocks. The purchase and sale of stocks may cause lack of liquidity, which may make a difference in the scheme and index.
Risk related to equity investment:
Risks related to derivatives:
Investment in derivatives is more risky because they are leveraged products.
Lack of liquidity in the market, wrong pricing, or counterpart default may cause damage.
The option writer may suffer more damage.
Risk related to fixed income securities:
Interest Rate Risk: Bond price falls as interest rate increases.
Returns Risk: Return on coupon payment or maturity may decrease.
Liquidity Risk: There may be difficulty in selling bonds in the market.
Credit Risk: The issuer may default.
Settlement Risk: There may be damage due to non-completion of transactions in time.
Advice for investors: This scheme is not free from risk. Be sure to assess complete information and your ability to take risks before investing.
What is Momentum Investing?
Momentum Investing is a strategy in which investors focus on fast growing assets and try to avoid falling trends. Its main focus is to buy assets that are moving upwards, and when the trend starts to weaken, sell them.
This strategy is based on the idea that trends have continuity. That is, if a stock is going up, it is less likely to fall suddenly.
Momentum investors use technical analysis. They decide when investing or when it would be right to invest or get out when looking at indicators like charts and moving averages. This strategy is also adopted by new investors, as they recommend it from online or offline experts.
Disclaimer: Here is the details of NFO. This is not advisable for investment. Investment in mutual funds is subject to market risks. Consult your advisor before making investment decisions.