Axis Mutual Fund launches its first equity fund

Axis Bank-promoted Axis Mutual Fund has launched its first equity fund, Axis Equity Fund, a diversified equity fund benchmarked to the S&P CNX Nifty.

“We aim to offer total investment solutions to consumers and not just individual products. Our research has shown that there is a huge demand for simplicity and trust in financial services," Axis AMC's managing director & CEO, Rajiv Anand, said in a statement here today.

"We have chosen to launch a simple but effective product in the category of diversified equity funds. Industry data indicates that in the last five years (as on October 30, 2009) all the 85 diversified equity funds have given positive returns with the worst giving 12% per annum and the best 34% per annum. With a simple product and a reputed brand name like Axis, we have an appealing solution for the consumer,” Anand said.

Axis Equity Fund will open for subscription on November 11 and close on December 8, the statement said. It will re-open for purchase and redemption on January 7, 2010.

Investors can apply through a lumpsum purchase or through Systematic Investment Plans during the NFO. The minimum lump sum purchase is for Rs5,000.

The scheme is available in two options – growth and dividend, and 1% will be charged as exit load if the investor redeems/ switches out from scheme within one year from the date of allotment.

“Axis Equity Fund is a solution designed for a consumer who is seeking a balance between deciding the best investment option that helps him provide for his family’s future and ensuring that he has invested wisely, thus helping him enjoy the present with his family,” national sales head, Karan Datta, said.

Axis Mutual Fund had launched two debt schemes in the month of October 2009. It manages Rs1,988 crore in these two schemes as on October 31. Axis Mutual Fund already has offices in over 25 Indian cities.