Axis Mutual Fund eyes Rs 200 cr from new smallcap index fund

Leading fund house Axis Mutual Fund is looking to raise Rs 200 crore from a new smallcap index fund it launched on Monday during the primary subscription period. Axis Nifty smallcap 50 index fund, which is an open-ended fund tracking the top 50 companies from Nifty 250 index, opens for subscription on Monday and closes on March 7.

The fund house has set a target of collecting Rs 200 crore during the primary subscription period, Raghav Iyengar, the chief business development officer of the fund house told PTI.

The new fund will be managed by Jinesh Gopani, head of equities at Axis AMC, and will track the Nifty smallcap 50 index, the fund house said in a statement.


There is no exit load on the new fund, which will be rebalanced on a semi-annual basis.

The Nifty smallcap 50 index represents the top 50 companies selected on the basis of average daily turnover from the top 100 companies selected, based on full market capitalization in Nifty smallcap 250 index.

The index is computed using free-float market capitalization method, wherein the level of the index reflects the total free-float market value of all the stocks in the index relative to particular base market capitalization value, the fund house said.

Smallcaps have been known to be alpha generators in growth cycles as they are niche businesses aiming to disrupt the status quo, Chandresh Nigam, managing director and chief executive of Axis AMC said.