Axis AMC eyes Rs 100 crore from Nasdaq 100 fund of fund

Axis Mutual Fund is targeting to garner Rs 100 crore from its Nasdaq 100 fund of fund during the primary sales period, a company official said on Thursday. The open-ended fund of fund scheme, open for subscription from Friday through October 21, will invest in the overseas units of exchange traded funds (ETFs) focused on the Nasdaq 100 index, the fund house said on Thursday while announcing the NFO from Friday.

"We are targeting to mobilise at least Rs 100 crore from the new offering during the new fund offer period," Raghav Iyengar, the chief business development officer at the fund house, told PTI when asked about the corpus being targeted. He said the new fund of fund will be investing in some overseas ETFs tracking the Nasdaq 100 index such as the Xtrackers Nasdaq 100 UCITS ETF, iShares Nasdaq 100 UCITS ETF, and Invesco EQQQ Nasdaq-100 UCITS ETF among others, and will be managed by Hitesh Das, who is the fund manager at Axis AMC's overseas investments.

On the exit charges, he said if redeemed/switched out within seven days of the allotment, the investor will have to pay 1 per cent in exit charges, and beyond seven days there is nothing.

On the rationale for launching the Nasdaq-focused fund, Chandresh Nigam, the chief executive of Axis AMC said, with the slowly blurring global boundaries, some discerning domestic investors are eager to gain access to some international growth stories. With this fund of fund, we are giving such investors an opportunity to gain global exposure. Axis MF is amongst the fastest growing fund houses in the highly cluttered domestic market that has close to 50 players.