Axis Value Fund: NFO closes on 16 September 2021

Axis Value fund is an open ended equity scheme following a value investment strategy.

Good to know Value Investing Value investing is an investment strategy that involves buying stocks or assets that appear to be trading below their intrinsic value. Intrinsic value of a stock refers to the worth of an asset, based on its fundamentals and independent of external factors such as market sentiments. Value investors search for stocks that they believe are being undervalued by the market, and see an opportunity to make a profit by purchasing the stock at discounted prices.

Investment objective

Axis Value Fund is a mutual fund scheme which aims to make money for investors through a contrarian strategy. For selecting value stocks, the fund has set parameters such as lower valuations, advancing of return on equity (RoE) during cycles, potential for earnings growth in the long run, execution capabilities and good governance.

However, it will also aim to avoid value traps by not investing in stocks which permanently remain cheap. The fund will also keep away from highly leveraged beaten down stocks and deep value stocks for short-term gains.

The portfolio will consist of 50-80% large-cap stocks and 50-20% mid-cap and small-cap stocks. Once the stocks have re-rated, there will be re-allocation.

This fund is suitable for investors who are looking for an alternate route to wealth creation.

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Asset allocation

Instrument	Allocation (% of total assets)		Risk profile
	Minimum	Maximum
Equity and equity-related instruments	80	100	High
Debt and money market instruments	0	20	Low to medium
Units issued by REITs and InvITs	0	10	Medium to high

Scheme details

Name	Axis Value Fund
Type	An open ended equity scheme following a value investment strategy
Category	Equity Scheme
Benchmark	S&P BSE 200
Entry/exit load	Entry: Nil Exit Load: Less than 1 year: Nil More than or equal to 1 year: 1%
Fund Manager	Jinesh Gopani
Minimum application amount	₹5,000 and in multiples of ₹1.
Expense ratio	Up to 2.25%

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This product is suitable for investors who are seeking*:	Riskometer
Capital appreciation over long term Investment predominantly in a portfolio of equity and equity related securities by following a value investment strategy.

*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

Note: The above information has been sourced from the Scheme Information Document provided by Axis Asset Management Company. To read the entire document, click here.

Disclaimer: The above article is purely academic in nature and aims to provide knowledge about basic trading concepts & should not be construed as an opinion or advice to invest or trade. RKSV Securities India Private Limited (brand name Upstox) is the distributor of the mutual fund. Mutual fund investments are subject to market risks; please read all the related documents and/or consult your investment advisor before investing. Past performance of an investment asset does not guarantee future returns.

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