Axis Nifty IT ETF

About Axis Nifty IT ETF (AXISTECETF)

• The Axis Nifty IT ETF is an open-ended exchange-traded fund offered by the Axis Mutual Fund house
• It includes the stock of companies in the information technology (sector listed on the National Stock Exchange (NSE).
• The scheme was launched on March 25, 2021.
• As of June 30, 2024, the fund’s assets under management were at ₹138.54 crore.
• Karthik Kumar and Hitesh Das are the fund managers.
• The ETF units can be traded during the usual market hours directly through a demat account with a registered broker.

Investment objective and benchmark

• The Axis Nifty IT ETF’s benchmark is the NIFTY IT Total Return Index.
• The scheme seeks to provide returns that closely correspond to the total returns of the NIFTY IT Index,.
• The IT industry is among the biggest exporters in the Indian economy. Investment in this ETF limits the investors’ exposure to domestic-specific risk.
• The fund predominantly invests in big companies that tend to offer more stability when compared to companies with lower market capitalisations.

Asset allocation and portfolio composition

• The Axis Nifty IT ETF invests in a variety of instruments to achieve its objectives.
• The fund’s allocation is primarily focused on equity, with 99.48% of the assets invested in this category.
• A portion of 0.02% is allocated to debt, while 0.50% is invested in other types of assets.
• The sector allocation of the fund is mostly in technology, with 99.48% of the assets invested in this sector, while the remaining 0.52% has been allocated to other sectors.
• The scheme is flexible to invest in any other instruments that may be permitted by SEBI or RBI from time to time.
• Top 10 company holdings constitute over 99% of the ETF’s asset allocation.

Top 10 companies in the ETF along with their portfolio weight:

• Infosys Limited: 27.05%
• Tata Consultancy Services Limited: 24.79%
• Tech Mahindra Limited: 9.66%
• HCL Technologies Limited: 9.63%
• Wipro Limited: 8.75%
• LTIMindtree: 5.96%
• Persistent Systems Limited: 5.36%
• Coforge Limited: 4.26%
• Mphasis: 2.42%
• L&T Technology Services Limited: 1.60%

In the last year, the Axis Nifty IT ETF has offered returns of 13.02%, as of May 31, 2024, compared to the benchmark index's yield of 13.30%

Since its inception, the ETF has delivered a CAGR of 9.44%.