Axis Multicap Fund: Should you invest?

Before investing, there is always a conflict over which Mutual Fund category to choose. When it comes to investing, what kind of fund should you choose? A person should be aware that each group has its own set of perks and drawbacks. Mid- and small-cap funds outperform large-cap funds in terms of returns, while large-cap funds offer greater security for your portfolio.

If a particular sector is performing especially well, sectoral funds might contribute to the gains. However, the multi-cap category distinguishes out from the rest because of its tremendous flexibility.

A multi-cap fund invests in a wide range of stocks from a wide range of publicly-traded companies. To achieve the fund’s investment objective, the investments are made in varied proportions.

Recently, to join the multi-cap bandwagon, Axis Mutual Fund recently announced the debut of their new fund offering, ‘Axis Multicap Fund.’ Investors will be able to invest in large, mid, and small-cap equities with a minimum of equal exposure in each category through this NFO.

Fund strategy

Across the market cap span, Indian capital markets provide a diverse range of investment opportunities. In the previous five years, the cut-off for large and mid-cap stocks has nearly doubled. While large caps give protection in volatile markets, mid and small companies serve to drive alpha.

As its name implies, the Axis Multicap Fund offers a steady mix of segments and is suited for investors seeking a consistent, thoughtful allocation across market capitalizations. A multi-cap fund is a good option for investors who want to attain long-term financial goals with minimal volatility and are willing to assume moderate risks.

Axis Multicap Fund will use a bottom-up stock selection process, concentrating on each stock appreciation potential from a fundamental standpoint. The allocation will be actively managed, focusing on selecting the greatest ideas inside each market capitalization bucket.

Management view

The fund will aim to capture potential opportunities throughout the company’s lifecycle, from small-cap to large size. The fund will use this strategy to create a quality-focused long-term portfolio with a better risk-reward profile.

“At Axis AMC, we believe in being relevant and responsible for the sake of our investors and changing market conditions. Our long-term focus is to not only protect capital but also returns. Keeping this strategy in mind, we have launched the ‘Axis Multicap Fund.’ This fund will help our investors package large, mid, and small-cap stocks in one single portfolio and steer through volatile market cycles,” said Chandresh Nigam, MD & CEO, Axis AMC.

What should investors know?

– As the fund falls under the category of ‘Very High’ risk category, the investors should check the product suitability with their financial advisors.

– The fund will be managed by the fund manager Anupam Tiwari and Sachin Jain of Axis Asset Management Company.

– The fund is benchmark against the NIFTY 500 Multicap 50:25:25 Index.

– Minimum Investment (NFO): Rs 5,000 and in multiples of Rs 1/- thereafter.