Axis MF launches Axis Small Cap Fund

Axis Small Cap Fund closes for subscription on 25th November, 2013

November 19, 2013 1:43 IST | India Infoline News Service
Axis Asset Management Co. Ltd. (Axis AMC) announced the launch of Axis Small Cap Fund a 5 year close ended equity scheme (including the date of allotment) that seeks to generate long-term capital appreciation from a diversified portfolio of predominantly equity & equity related instruments of small cap companies. The scheme will become open-ended on completion of 5 years.

Axis Small Cap Fund closes for subscription on 25th November, 2013. The minimum amount that investors can invest in this fund is Rs 5000/-

The initial 5 year closed ended structure seeks to address liquidity of small caps. The subsequent open ended nature further seeks to provide flexibility to investors who can either choose to remain invested for a longer tenure. One of the most prevalent perception in the minds of retail investors in India is that Small caps are risky and during the current situation inappropriate to invest in. Internal research has demonstrated that while dispersion in performance is bigger for small caps as compared to large cap stocks quality small caps have typically a lower beta and have the potential to out-perform large caps.

Commenting on the Launch Chandresh Kumar Nigam, MD & CEO, Axis AMC said “Selective small caps have historically outperformed over large caps over a long period of time. We believe that the lower correlation of small cap stocks with the bellwether index brings the desired diversification in an investor’s equity portfolio. The valuation gap between small & mid/large caps has widened over the last few years and this presents us with an opportunity to pick quality strong business operating in niche markets with healthy balance sheets at lower prices.

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