The new fund offer (NFO) opens on October 7, 2022, and closes on October 21, 2022.
The fund will target ETFs replicating the NASDAQ 100 TRI performance, subject to tracking errors. The minimum subscription amount is Rs 500, and after that, in multiples of Rs 1.
The Axis NASDAQ 100 Fund of Fund is benchmarked against the NASDAQ 100 TRI.
It plans to invest in overseas ETFs such as Xtrackers NASDAQ 100 UCITS ETF, iShares NASDAQ 100 UCITS ETF, and Invesco EQQQ NASDAQ-100 UCITS ETF that track the NASDAQ 100 Index. Exuding confidence in the product, the fund house said these ETFs have historically demonstrated lower tracking error.
The tech-heavy NASDAQ 100 Index includes the top 100 non-financial companies based on market capitalisation. Some top sectors include information technology, consumer discretionary, communication, consumer staples, healthcare, industries, and utilities.
The exit load has been set at one per cent if redeemed or switched out within seven days of allotment, and after that, it is nil.
Strong Global Exposure
The fund house said it offers immense opportunities to access some of the largest non-financial companies, leverage top global expertise, and better execution capabilities to generate wealth.
Commenting on the scheme, Chandresh Nigam, managing director (MD) & chief executive officer (CEO) of Axis Mutual Fund, said as investors mature and take an active interest in wealth creation, the asset allocation paradigm has changed dynamically.
Nigam added, "Investors are eager to gain access to some international growth stories, which was earlier not feasible so seamlessly. With the Axis NASDAQ 100 Fund of Fund, we are presenting investors with the opportunity to gain global exposure.
The NASDAQ 100 Index is led by some of the world's most innovative and rapidly expanding non-financial companies that generate the bulk of their revenue from shores. Besides giving global exposure, the NASDAQ-100 could also act as a hedge against the depreciating rupee.