Axis Mutual Fund launches ‘Axis Consumption ETF’

PUNE: Axis Mutual Fund, one of the fastest-growing fund houses in India, today announced the launch of their new fund– ‘Axis Consumption ETF’. The new fund offers (NFO), which will open on Monday, August 30, will allow exposure to the consumption theme in a neatly packed bite-sized exchange-traded fund.

The new fund offers long-term wealth creation solutions and targets to achieve returns by investing in a basket of NIFTY India Consumption Index stocks.

Digitization adds an incremental fillip to this growth in our view. Digitization is integral to two changes: a) policy initiatives that are boosting financial inclusion and b) technology changes that are reducing the cost of delivering financial services to the masses and small enterprises. These, along with the government’s focus on employment for all, will make growth more inclusive, which in turn makes us more confident about India’s growth outlook.

A key beneficiary of this growth is consumption. As an aspirational populous India, today stands next only to China as the largest growth prospect in the consumption ecosphere. As median incomes rise, the expenditure pie for Indian families is likely to increasingly pivot to discretionary spends which include entertainment, travel, consumer appliances, and even property.

This growth has already resulted in significant growth across many B2C businesses across a variety of sectors. An indicator of this performance is The NIFTY India Consumption. The index comprises a diversified grouping of companies across sectors like Consumer Non-durables, Healthcare, Auto, Telecom Services, Pharmaceuticals, Hotels, Media & entertainment, etc. that reflect the essence of consumption in India today across essentials and discretionary spending. The NIFTY India Consumption Index comprises the 30 largest consumption-oriented companies by free-float market capitalization.

The potential of passive investing in the Indian financial markets has gained quite a momentum and seems likely to stay. The two most popular vehicles for passive investing are index funds and exchange-traded funds. Passive Investing is a low friction investment strategy tracking a specific index as closely as possible. It participates in the constituents in the same proportion as the index and removes the risk of security selection at an efficiently low-cost strategy by relying on broader market wisdom.

Apart from being cost-effective, ETFs let investors invest at real-time prices as opposed to end-of-day prices by sector funds. It protects their investments from the inflows and outflows of short-term investors. Furthermore, ETFs are best suited to earn asset-class linked performance and are touted to be one of the most flexible tools for gaining instant exposure to the markets, thereby equitizing cash.

On the launch of the NFO, Chandresh Nigam, MD & CEO, Axis AMC, said “We at Axis AMC, strongly stand by being responsible fund house. We strive to provide our consumers with a basket of products that are potently driven by quality and are relevant in the current context giving long-term returns. Through the launch of Axis Consumption ETF, we aim to provide our consumers with an investment option that has proof of growth & strong returns. The consumption market has remained strong, gained traction, and grown consistently over the last few decades. Our investors are smart and are completely driven by data, it is important that we distinctly show the surge in passive investing. I believe Axis Consumption ETF is a good opportunity for investors to gain exposure as well as a steady and continued long-term growth in the market.”

source https://nrinews24x7.com/axis-mutual-fund-launches-axis-consumption-etf/

September 01, 2021