Axis Mutual Fund has announced the launch of their new fund– ‘Axis Healthcare ETF’. The new fund presents (NFO), which will open on Friday, April 30th, will let access to investors in the Healthcare sector in a neatly packed bite-sized exchange-traded fund and will be managed by Jinesh Gopani, Head – Equity, Axis AMC. One sector that has emerged in the course of the ongoing Coronavirus pandemic is the pharmaceuticals like the healthcare services that it brings along. For investors, seeking to take exposure in this segment, the ETF route may well come in handy.
The new fund give is appropriate for investors who are searching for, extended-term wealth creation option by means of targeted sectoral exposure to the healthcare sector and seeks to track returns by investing in a basket of NIFTY Healthcare Index stocks with an aim to reach returns of the stated index.
The NIFTY Healthcare Index has been a extended-term wealth creator. It comprises the 20 biggest healthcare-oriented firms by cost-free-float marketplace capitalization and has the capability to take exposure across the whole healthcare worth chain like – Hospitals, Diagnostics players, pharmaceutical companies and R&D players. India’s Healthcare market has accomplished worldwide recognition for its capabilities and robust information base and has robust continued development prospective.
Passive investing in India has gained really the momentum, either by means of index funds or exchange-traded funds. It is a low friction investment method tracking a particular index as closely as achievable. The passive strategy of replicating benchmark also leads to a steady portfolio with restricted turnover.
Apart from getting expense successful, ETFs let investors invest at genuine-time costs as opposed to finish of day price tag by sector funds. It protects their investments from the inflows and outflows of quick-term investors. Furthermore, ETFs are very best suited to earn asset-class linked functionality and is touted to be one of the most versatile tools for gaining immediate exposure to the markets, thereby equitizing money.
Highlights
- An open ended Exchange Traded Fund tracking NIFTY Healthcare Index
- The fund presents investors an chance to invest in the largest Healthcare firms in India at their personal pace as it offers exposure to them all in a neatly packed bite-sized exchange traded fund
- Minimum Investment (NFO) Rs. 5,000 and in multiples of Rs.1 thereafter
- Benchmark: Nifty Healthcare TRI Index
- NFO date: April 30, 2021 to May 10, 2021
On the launch of the NFO, Chandresh Kumar Nigam, MD & CEO, Axis AMC, mentioned “As a responsible fund house, we want to develop, introduce and provide the products that are relevant in the current context as well as in the long term. Accordingly, we recognize the need to offer investors a choice of strategies including robust passive products. Our ETF strategy relies on offering highly innovative yet relatable products to our target investors and we have already seen a number of launches in this space in the last year. The launch of Axis Healthcare ETF continues to take forward our endeavour to build up our passive product suite over time and towards our target of being the preferred manager to investors across the entire spectrum of active and passive products.”