Axis India Manufacturing Fund: A Great way to invest in India

Introduction

From the mobile phones in your hands to the roads you drive on the products of manufacturing are everywhere you see. The Axis India Manufacturing Fund is the gateway for investors to contribute to this vital sector of rapid growth and create a bright future for the nation.

If this makes you excited let’s deep dive into knowing this fund and understand its investment philosophy, and benefits and clearing out all the myths that you’ve been hearing about this myths.

What is the Axis India Manufacturing Fund?

This manufacturing fund is an open-ended scheme that primarily invests in the manufacturing sector of India which is a key driver of the nation’s economic development. It was launched by Axis Mutual Fund on 21st December 2023. This fund includes sectors like electronics, automobiles, production of fabrics, and other textile products. This manufacturing fund has total assets of Rs. 6040 cr.

Investment Philosophy of Axis India Manufacturing Fund

This Axis India Manufacturing Fund manufacturing fund’s main goal is to generate long-term capital goal to achieve this goal, let us see what are the investment philosophy:

1. Sector Specific Focus

The fund focuses on the companies across the manufacturing value chain, including core manufacturing and logistics. This fund has capitalized on India’s push towards self-realization and an increase in global integration.

2. Bottom-Up Stock Selection

This fund employs a bottom-up stock-picking approach selecting companies based on their intrinsic value and growth potential. It identifies businesses with strong growth potential and strong financial and competitive advantages.

3. Risk Management

Despite its focused approach, the fund maintains a disciplined risk management framework. So much diversification ensures that no single industry dominates the portfolio. As the risk is slightly high in these funds it is best to decide as per high changes in the market.

4. Long Term Perspective

The fund features a long-term investment horizon aiming to capitalize on the high growth potential of the Indian manufacturing sector. The fund cycle often changes because of policy changes and technological upgrades. But these funds align with these cycles, aiming for sustainable growth over a long period.

5. Diversification within Manufacturing

The portfolio isn’t limited to traditional manufacturing firms. It includes sectors like energy, transportation, chemicals consumer durable, and other industries that help in an economic boost of the nation.

4 Common Myths about Axis India Manufacturing Funds

There are too many myths about these manufacturing funds let’s clear them one by one.

1. Myth 1: It only Invests in Traditional Manufacturing Companies

While the funds mainly focus on companies in the manufacturing sector they also include companies that are benefiting from manufacturing growth such as automation, logistics, and other industries. Its portfolio is diverse within the sector, targeting both direct and indirect players.

2. Myth 2: Sectoral Funds are Too Risky for any Investor

Sectoral funds like this are high-risk investments due to their focused exposure but they can be suitable for investors who understand the dynamics of the sector and have long term investment horizons. This fund leverages national growth potential started by the Indian government like Make in India.

3. Myth 3: You Must Have a Large Sum to Start

Many people think if you want to start investing in these big sectors you need a lot of money. But the reality is that you can invest in this fund by a very small amount and even through SIPs (Systematic investment plans) where you can invest in fixed amounts regularly.

4. Myth 4: This Fund is Only Suitable for Short Term Investment

The investment strategy of the fund is long term appreciation. It is advised by experts to invest in these equity funds for at least 5-7 years to ride out potential market cycles and reach maximum returns.

Who Should Invest in the Axis India Manufacturing Fund?

The following points denote why Axis India Manufacturing Fund can be a good fit for investors who:

1. Long-Term Wealth Builders

Their equity-oriented schemes like the Axis Blue Chip Fund or Axis Growth Opportunities Fund are ideal for investors aiming to build wealth over the long term. A long term horizon allows to generate higher returns.

2. High Risk Tolerance

Investors who can handle market fluctuations and are seeking higher returns may find this fund a good option to invest. These funds are for those with a higher risk appetite and a belief in a specific sector’s growth potential.

3. First Time Investor

This mutual Fund offers a range of Balanced and hybrid funds which are suitable for the first-time investor looking for a mix of both growth and stability.

4. Prefer a Reputed Fund House

This fund is a well-established and reputable fund house with a strong track record of delivering a good profit and a range wide range of funds across various asset classes and investment styles.

5. Prefer a Reputed Fund House

This fund is a well-established and reputable fund house with a strong track record.

Conclusion

Although investing in manufacturing sectors has instability due to frequent changes in policy and geographical conditions this fund offers a unique opportunity and SIP option for investors to capitalize on India’s industrial sectors and the investor can also be a part of the nation’s growing economy by investing in manufacturing funds.