Axis Mutual Fund, one of the best performing mutual fund houses in India, is in process of renaming ‘Axis Multicap Fund’ to ‘Axis Flexicap Fund’.
It will be the open ended dynamic equity scheme which will invests across large, mid, and small cap stocks to facilitate capital appreciation over medium to long term.
The scheme, moving to the new category will continue to adopt a flexible approach to allocation and not be constrained by market cap restrictions.
History
Sebi had insisted that multicap funds should invest 25 per cent each in small, mid and large cap stocks.
This has unsettled most multicap schemes as their învestments were tilted towards large cap stocks.
To follow the Industry Standard, SEBI vide its circular dated November 6, 2020 introduced a new category of equity oriented schemes under the SEBI scheme categorization framework.
Effective from
The name will be effective from January 30th 2021 onwards.
Investment Strategy
Axis Flexicap Fund will invest minimum 65% to maximum 100% in equity and equity related investments, maximum 35% in debt and money market investments, and maximum 10% in units issued by REITs & InvITs (earlier the asset allocation was such that the scheme shall invest minimum 80% to maximum 100% in equity and equity related investments, maximum 20% in debt and money market investments, and maximum 10% in units issued by REITs & InvITs).
Furthermore, the scheme shall invest in debt instruments having structured obligations/credit enhancement as per limit prescribed by the Securities and Exchange Board of India (SEBI) and amended from time to time.
Not more than 20% of the net assets of the Axis Flexicap Fund can be deployed in stock lending as per the current provisions.
Comment from Company
“We have been successfully managing this fund over the last three years and we believe that this change allows existing and prospective investors to participate in the strategy in the best manner.”
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