Why Axis AMC’s new fund of fund is your gateway to global investment opportunities
While financial advisors have long advocated for spreading your investments across multiple platforms such as mutual funds, equities, debt, and gold, among others, mutual funds have been popular among investors given they are relatively a steadier, less-risky, and are also a professionally-managed instrument that has given stellar returns.
But within the mutual funds space, it is recommended to keep diversifying your investments to mitigate the risks that you could face if you are focused only on one geography or theme. And, the COVID-19 pandemic has only sought to tell the Indian investor the importance of having secured investments and be open to any meaningful long-term investment idea for better growth of your money.
Yet, investors in India have missed out on 97 percent of the global equity opportunities because their investments, or portfolios, have been overwhelmingly allocated to the Indian equity markets, representing just 3 percent of the global equity markets, as per data from the World Bank.
Experts at Axis Asset Management Company (AMC), one of India’s fastest growing asset managers, believe that the time is right for investors to look at global markets for growth prospects, reducing one’s risk profile and better risk-adjusted returns. They believe investors must allocate their funds to cash in on growth from brands such as Google, Facebook, Adidas, Amazon, Nestle and Visa etc.
With that in mind, and to help investors get the best out of global allocation, the AMC has tied up with another asset management giant, Schroders, to launch the Axis Global Equity Alpha Fund of Fund. This is the first dedicated global feeder fund launched by Axis AMC in the Indian market, marking another feather in the cap for the AMC that has already seen two successful mutual fund schemes — Axis Growth Opportunities Fund and Axis ESG Equity Fund — which over the last couple of years have allowed part global exposure to investors.
“Exposure to global investment opportunities today can significantly broaden the Indian investor’s investment universe as well as help them improve their portfolio through diversification benefit,” said Chandresh Kumar Nigam, MD & CEO of Axis AMC said during the fund launch.
The Axis Global Equity Alpha Fund of Fund is an open-ended fund of fund schemes that invests in the Schroder International Selection Fund Global Equity Alpha. Schroders is a world-class asset manager that operates in 35 locations across Europe, Americas, Asia, the Middle East and Africa and manages assets worth 525.8 billion pounds.
- You can get access to a compact, high-conviction portfolio of geographically and sectorally diversified equity stocks
- The fund will use a bottom-up approach to invest in quality growth companies with a sustainable competitive advantage that are mispriced by the market.
- In bottom-up investing, investors focus their attention on a specific company and its fundamentals, rather than on the industry in which that company operates or on the greater economy as a whole, according to Investopedia.
- Lastly, the fund is managed by the London-based Global Equities team of Schroders.
Does it fit your bill?
Features aside, investors will find the product suitable if they are looking for these two purposes:
- Capital appreciation over the long term
- Investment in Schroders International Selection Fund Global Equity Alpha. This is the asset manager’s equity fund that aims to give capital growth by investing and equity-related securities of companies worldwide
Note: Please consult your financial advisors if you are in doubt about the product’s suitability for you.
How can you invest?
Investors can consider approaching their financial advisors, existing distributors etc. to help you subscribe to the fund. Alternatively, they can directly approach Axis AMC to help you with the investment.