Insights to Axis India Manufacturing Fund
Have you heard the saying, ” Engage in Innovations with Axis India Manufacturing Fund“? If yes, let’s explore the scheme in detail by examining its various perspectives. Axis Mutual Funds started this scheme. The scheme has a motto to produce high earnings by investing in the manufacturing sector.
The manufacturing sector is contributing to 27.3 million workers in the nation. Moreover, this growing sector contributes 17% of India’s GDP. Also, the government is supporting this sector. They aim to create a sustainable future for the upcoming generation.
In addition, the scheme invests in the firms of manufacturing-related activities. The scheme has investments in firms of various market capitalization. Hence, the large cap has 28.89%, the mid cap has 23.19%, the small cap has 5.95%, and the other has 41.97%.
Furthermore, the scheme has better performance than the benchmark NIFTY India Manufacturing TRI. With knowledge of the market statistics, the management staff designs strategies for you. These strategies are formed accordingly that fit your financial goals.
From the survey, the scheme is managing investments of Rs. 6053.6912 Crores till date September 30, 2024. Moreover, the scheme has top holdings in the leading companies. For example, Mahindra & Mahindra Ltd., Reliance Industries, L&T and more.
Moreover, the scheme has sector allocations in Consumer Discretionary, Industrials, Healthcare, and more. Also, the scheme has given good returns of 34.45% since its start.
With a brief description of the scheme. Let’s begin to learn the various perspectives associated with it.
Is the Axis India Manufacturing Fund Good to Invest in?
Here in this section, you’ll get to know the features of the scheme so that you can invest in it:
1. Long-term Investment
The scheme invests in the growing sector of the nation. The scheme gives you the experience of consistently good income with long-term investments. You will get earnings for a long time when the investments are held for at least 5+ years.
2. Government Support
The manufacturing sector is supported by government initiatives. For example, the Make in India initiative has started to improve the export trade of the country. Hence, the scheme is producing beneficial profits that build trust in you to invest in the same.
3. High Potential Growth
The ups and downs are part of development and indication of progress. The Axis India Manufacturing Fund with the sector’s growth gives you potential strength. Consequently, good performance brings enthusiasm for you to strongly beat the market challenges. As a result, the strong potential helps you to balance your economy during inflation.
4. Variation in Investments
The scheme has investments in various sectors involved in the manufacturing sector. Also, the scheme covers all market cap firms. Hence, the scheme brings the experience of stability and growth from these firms. As a result, it becomes an advantage of portfolio diversification for you.
5. Fund Management
Mr. Shreyash Devalkar has 19 years of experience in finances. He has been managing the scheme since December 21, 2023. Also, Mr. Nitin Arora with experience of 12 years has been serving the scheme since December 21, 2023. They keep managing the investment allocation based on the market conditions.
6. Investing Strategies
The scheme has a lump sum and systematic investing plan methods. You can have good earnings by investing a huge amount at once in a lump sum. On the other hand, a systematic investment plan gives you steady growth by investing a small amount.
Expanding on your knowledge of the scheme. Curious to look at the flip side of the scheme then move on to the next section.
How Risky is the Axis India Manufacturing Fund?
This section brings you with the knowledge of the risk factors involved in the scheme:
1. Market Risk
The scheme is prone to market risk like other mutual fund schemes. The economic downturns in the manufacturing sector lead to underperformance in the scheme. Hence, the low performance gives you low net earnings.
2. Political Risk
The changes of rules in the government policies and initiatives. Also, the change of government party affects the scheme’s productivity. As a result, underproductivity leads you to low gains and also disbalances your economic growth.
3. Sector-Specific Risk
The Axis India Manufacturing Fund only addresses the manufacturing sector. Investments in various firms of the sector give you diversification within the sector. The government is not funding projects on time, and businesses are facing continuous challenges. Then the downfall in a particular sector significantly affects your earnings.
4. High-Cost
The expense ratio of the scheme depends on the research and operational analysis. Also, the frequent liquidity of the investments increases the expense ratio rate. Hence, these reasons reduce your net earnings over time.
With the knowledge on both sides of the scheme. Let’s explore the side where you’ll get to know the criteria for investing in the scheme.
Who Can Apply for the Axis India Manufacturing Fund?
Here in this section, you’ll learn that whether you can invest in the scheme or not:
1. Growth Seeker
The scheme’s productivity increases with time. If you wish to follow your passion and attain long-term progress. Then the scheme makes you financially stable for a long-term race.
2. Potential Seeker
The ups and downs of the scheme provide high-potential growth. If you wish to maximize your potential. Then the scheme gives you a strong willpower that helps you to encourage for standing out in the market.
3. Stability Seeker
The scheme invests in various market caps of the market. If you want stability in your living. Then the investments of the scheme in large cap firms give you stability assurance. As a result, it balances your economic conditions.
4. Regular Investors
The scheme gives the facility of passive investing. If you are from an average-income profession. Then you can invest regularly at fixed intervals according to your choice. Hence, the scheme is suitable for you.
With a detailed discussion of the scheme. It is time to wrap up the discussion with a short recap in the last but not least section
Final Note
In summary, the pieces of evidence about the scheme reveal that it gives you stability and growth. Moreover, the scheme gives you the advantage of portfolio diversification. Although the scheme has many benefits it is also prone to inherent risks.
There is a way for SIP investments to reduce these risks. You can make investments through this approach. This investing approach makes your investing process easy and convenient for you. So, let your growth and stability rise at a slow pace.
