AXIS NIFTY MIDCAP 50 INDEX FUND

OPENS ON MARCH 10 CLOSES ON MARCH 21,2022 AXIS TRUSTED FOR OVER 25 YEARS PROFESSIONAL FUND MANAGEMENT CONSISTENT MARKET BEATING RETURNS PASSIVE FUND MANAGEMENT –USING BEST IN CLASS FUND REPLICATION TECHNOLOGY SUITABLE FOR INVESTORS WITH HIGH-RISK APPETITE FOR LONG TERM WEALTH CREATION Axis Mutual Fund has announced the launch of Axis Nifty Midcap 50 Index Fund, an open-ended index fund tracking the Nifty Midcap 50 Index. The new fund offer (NFO) opened for subscription on Thursday and will close on 21 March. The Nifty Midcap 50 Index consists of top 50 companies based on full market capitalization from NIFTY Midcap 150 index with preference given to those stocks on which derivative contracts are available on National Stock Exchange (NSE). The index is rebalanced on a semi-annual basis (March and September) using average data of the last six months. The Axis NIFTY Midcap 50 Index Fund will invest in 50 most liquid midcap stocks, giving preference for stocks where future and options ((F&O) contracts are traded on NSE. It presents a diversified portfolio for investors that focuses on sustainability for picking stocks. The rank of any F&O constituent in the Nifty Midcap 150 Index based on full market capitalization is among the top Nifty Midcap 30. In case of any shortfall (in the event that F&O stocks are not available for inclusion in the index), securities with the highest average daily turnover will be selected from the top 30 non-F&O constituents in the Nifty Midcap 150 Index based on full market capitalization. The Axis Nifty Midcap 50 Index Fund follows a rule-based passive investing strategy that endeavours to deliver market-linked returns. The minimum application amount is ₹5,000 and in the multiples of Re 1, thereafter. There will be an exit load of 1% if the units are redeemed or switched out within seven days from the date of allotment, and nil, thereafter. The Axis NIFTY Midcap 50 Index Fund follows a rule-based passive investing strategy that endeavours to deliver market-linked returns. This hassle-free and low cost investing solution is ideal for investors looking for exposure to midcaps, while following a disciplined and systematic format of investing. Investors can look to invest through various systematic options like SIPs, STP’s to adopt a more disciple approach or invest via lumpsum. BENCHMARK PERFORMANCE FUNDAMENTALS, MAJOR CONSTITUENTS AND SECTORAL ALLOCATION Peer comparison SHOULD YOU INVEST IN THIS SCHEME OR NOT ? Axis Nifty Midcap 50 Index Fund replicates the Nifty Midcap 50 Index TRI performance. Also, this fund primarily invests in the same stocks and proportions as the Nifty Midcap 50 Index. Hence, the Axis fund aims to track the benchmark’s return closely with minimum tracking error. Since the fund invests across mid-cap stocks, it is a high-risk investment option. Moreover, investors must have a long-term investment approach to average out the short-term market volatility. Investors who understand the category and can closely monitor the performance of the mid-cap stocks can consider investing in this scheme. Furthermore, the scheme is ideal for investors looking for exposure to midcaps. Also, the index fund structure is ideal for systematic investing. Moreover, investing in Axis Midcap 50 Index fund is a hassle-free and low cost investing solution. Since it is a pure equity scheme and mid-cap focused, a long term investment horizon is a must. Also, as the fund does not guarantee returns, it is prudent to keep a close eye on the investments.