The Axis AMC has launched the NFO ‘Axis Global Equity Alpha Fund of Fund,’ which will invest in the Schroder International Selection Fund (SISF), Global Equity Alpha. This fund aims to provide capital growth by investing in equity and equity-related securities of the companies worldwide.
The fund offers an excellent opportunity for Indian investors to participate in a high quality globally diversified equity portfolio that can complement their Indian equity allocation.
Who Is Schroders?
An asset management expertise, Schroders is a leading global asset manager with assets under £526 billion under management across asset class with over an experience of 200 years of investment market. It has over 400 fund managers and analysts worldwide.
What is Fund of Fund?
It is a pooled investment fund that holds a portfolio of other investment funds rather than directly investing. The Axis Global Equity Alpha Fund of Fund will invest in the Schroders International Selection Fund Global Equity Alpha, an asset management expertise of Luxembourg.
Why Should India Invest In Axis Global Equity Alpha Fund Of Fund?
Being the fastest-growing projected economy, India accounts for only 3% of the global market capitalization because of its home bias tendency of investing only in domestic equities.
According to the 2019 World Bank Report, 99.8% of Indian investors invest in domestic equities, which reduce their exposure to the benefits of investing in foreign equities.
This Fund of Fund will help Indian investors unlock the best possible global opportunities by investing in foreign equities that are not available on the Indian exchange.
Ecommerce websites like Amazon and Alibaba, Consumer Internet like Facebook and Alphabet, and Consumer brands such as Nike and Adidas.
Apart from serving as a tremendous global opportunity, Axis Global Equity Alpha Fund of Fund is a boon for the following reasons.
1. Better Adjusted Returns
This global equity fund is an excellent idea because it works on maximum returns in minimum risks. A globally diversified portfolio is a better risk-adjusted return. An investment in global funds helps you engage in global growth themes and sunrise sectors, which may not be present in the Indian market.
2. Reduced Risk
While trying to achieve diversification, the fund also aims to lower the risk of correlation among its investments. Developed markets tend to have reduced risk, and lower correlation can help bring down the portfolio’s risk.
3. Easy to Invest
One can easily invest through their domestic funds with a minimum application of Rs 5000 and Rs 1 after that. For more information, visit here.
PROVIDES INDIAN INVESTORS WITH LONG TERM WEALTH AND VALUE CREATION OPPORTUNITIES SUCH AS:
· Due to heightened consumer demand and a steady increase in inflows, the Indian equity market has gained significant momentum.
· The investors can uniquely combat the considerable disruption caused in the economy due to lockdown with the help of overseas funds that are aided by robust growth strategies.
· Indian market’s growth stage and global exposure help investors grow with some of the biggest companies in the market.
· Investors who choose to diversify their portfolios through international funds can find their portfolios to move differently to Indian indices.
4. Schroders Investment Edge
· Schroders aims at exploiting persistent market inefficiencies
· Aims at constructing a diversified portfolio which focuses on consistency and risk-adjusted returns
· Integrates ESG and fundamental risk analysis
· Schroder’s top 10 holdings include Amazon.com Inc, Alphabet Inc, Microsoft Corp, Visa Inc, Adobe Inc, Facebook Inc, Unitedhealth Group Inc, Intuit Inc, JPMorgan Chase & Co, Philips Morris International.
WHO CAN AND WHO SHOULD INVEST IN Axis Global Equity Alpha Fund of Fund?
Any investor seeking a long term capital appreciation and desire to invest in equity and equity-related securities of companies worldwide can invest in this global fund.
The following criteria decide who is eligible to invest in this Global Equity Fund of Fund.
1. An adult resident can either singly or jointly invest, but should not exceed three or any anyone or Survivor basis.
2. Persons of Indian Origins, Non-Residential Indians, Overseas Citizens of India residing abroad on repatriation basis or non-repatriation basis
3. Minors with no joint holding on investments and with someone with a natural guardian or a court-appointed local guardian
SALIENT FEATURES OF THE Axis Global Equity Alpha Fund of Fund
1. Schroders Global Equities Team in London is the one managing the whole fund,
2. Tends to use bottom-up fundamental research to find and invest in quality growth companies with a sustainable competitive advantage that is mispriced by the market
3. Invests in a compact, high conviction portfolio of geographically and sector-specific diversified equity stocks
For further details, investors can refer to the Scheme Information Document/ Key Information Memorandum.
Anchit is a 25 years old Civil Engineer with a knack of investing, travelling, blogging, movies and a lot more. He has been investing and trading in stocks since 2014 with his best investments being UPL, United Spirits and IndiGo.