Axis Equity Hybrid Fund‘s NFO eyes retail investors who plan to invest in equity market but who do not want to be adversely affected by its volatility. About 65-70% of the investments will be in equity and the rest will be in fixed income instruments or in cash. The NFO opens on 20 July and closes on 3 August.
Retail Investors in Equity Market
Axis Equity Hybrid Fund is a retail product that will be launched in the aggressive hybrid space. It focuses on retail investors who plan on long-term wealth creation but do not want a volatile portfolio. With the volatility of risk reduced by 30-35%, the fund focuses on investors who are looking for conservative investments. ‘We are looking to attract 70,000 to 75,000 retail investors, who in India are traditionally conservative, and if we do that we will end up at 1500 cr subscription for this fund during the NFO period’, says Mr. Chandresh Nigam, MD, and CEO of Axis Asset Management Company Ltd.
Since the NFO divides investments between equity and fixed income instruments, the risk factor associated with equities is countered with the fixed income generators that the fund provides.
Market Trends
Mr. Chandresh Nigam is optimistic about the current market trend. ‘Markets are doing fairly of what is expected of them. Good quality business continues to grow and there is a reasonable certainty about their growth and prospects in the long run. That is keeping the markets at all time high if you look at NIFTY and SENSEX’, he says.
Financial planners, however, say that investors must invest in NFOs only if there is a need for that product in their portfolio. They believe that NFOs are usually offered when the trend in the equity markets is in the upward direction.