Axis Mutual Fund renames its multicap fund as 'Axis Flexicap Fund'

Axis Mutual fund has renamed its multicap scheme as the Axis Flexicap Fund. This comes after ​​Sebi put a strict mandate for multi cap funds to allocate at least 25% each in small and mid cap stocks.

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Axis Mutual fund has renamed its multicap scheme as the Axis Flexicap Fund. This comes after the Securities and Exchange Board of India put a strict mandate for multi cap funds to allocate at least 25% each in small and mid cap stocks. Later, in its circular dated November 6, 2020, Sebi had introduced a new category of equity oriented schemes - flexi cap funds.

Keeping in mind the current product positioning of Axis Multicap Fund and retaining a flexicap approach to the existing fund, Axis Mutual Fund is in process of renaming ‘Axis Multicap Fund’ to ‘Axis Flexicap Fund’. The fund house said in a press release that the scheme will continue to be an open ended dynamic equity scheme that invests across large cap, mid cap, and small cap stocks to facilitate capital appreciation over medium to long term. The same will be effective from January 30th, 2021 onwards. The scheme, moving to the new category will continue to adopt a flexible approach to allocation and not be constrained by market cap restrictions.

After the revision, Axis Flexicap Fund will invest minimum 65% to maximum 100% in equity and equity related investments, maximum 35% in debt and money market investments, and maximum 10% in units issued by REITs & InvITs (earlier the asset allocation was such that the scheme shall invest minimum 80% to maximum 100% in equity and equity related investments, maximum 20% in debt and money market investments, and maximum 10% in units issued by REITs & InvITs).


Furthermore, the scheme shall invest in debt instruments having structured obligations/credit enhancement as per limit prescribed by the Securities and Exchange Board of India (SEBI) and amended from time to time. Not more than 20% of the net assets of the Axis Flexicap Fund can be deployed in stock lending as per the current provisions.

"Axis Flexicap Fund continues to remain backed by Axis Mutual Fund’s philosophy of unwavering focus on quality and will carry on looking for stocks that are expected to report faster growth than the relative benchmark (this includes sustainable earnings growth potential, credible management and acceptable liquidity), considering current times. We have been successfully managing this fund over the last 3 years and we believe that this change allows existing and prospective investors to participate in the strategy in the best manner," the fund house said in the press release.
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