Axis Mutual Fund expecting to raise Rs100 crore for its Nasdaq 100 fund of funds

7 Oct 2022 , 08:37 AM

An executive from Axis Mutual Fund stated on Thursday that the business expects to raise Rs 100 crore from its Nasdaq 100 fund of fund during the initial sales period. The open-ended fund of fund plan will invest in foreign units of exchange-traded funds (ETFs) targeted at the Nasdaq 100 index, according to the fund house, which announced the NFO on Thursday. Subscriptions for the NFO are accepted from Friday until October 21.

When questioned about the corpus being sought, Raghav Iyengar, the chief business development officer at the fund house, said to PTI, “We are trying to raise at least Rs 100 crore from the new offering within the new fund offer period.”

He stated that the new fund of funds will be managed by Hitesh Das, who is the fund manager for Axis AMC’s international investments, and will invest in some overseas exchange-traded funds (ETFs) tracking the Nasdaq 100 index, including the Xtrackers Nasdaq 100 UCITS ETF, iShares Nasdaq 100 UCITS ETF, and Invesco EQQQ Nasdaq-100 UCITS ETF, among others.

Regarding exit fees, he stated that if redeemed or switched out within seven days after the allocation, the investor would be required to pay 1% in exit fees, and after seven days, there are none.

According to Chandresh Nigam, chief executive of Axis AMC, certain discerning local investors are anxious to acquire access to select foreign growth stories, which is one of the reasons for creating the Nasdaq-focused fund. We are providing these investors with the chance to get global exposure through our fund of funds. In the almost 50-player domestic market, Axis MF is one of the fund firms with the fastest growth rates.