Ride the Indian Economic Growth Wave with Axis India Manufacturing Fund4 min read
India is one of the fastest growing economies in the world, currently ranking 5th in terms of GDP and is expected to become the third-largest economy globally with a $5 trillion GDP by 2027.
India’s manufacturing journey has come a long way and since the last few years, a substantial impetus is being provided to the manufacturing sector with a greater focus by the government through larger budgets, policy reforms such as Atmanirbhar Bharat, Make in India 2.0, and various PLI schemes.
Today, India aims to boost the contribution of the manufacturing sector to the overall GDP by focusing on exports and FDI inflows. India aspires to become the world’s preferred manufacturing hub. These aspirations are gradually shaping into reality, thanks to huge demand for consumption and augmented supply.
Our cost competitiveness makes India more attractive than other manufacturing countries like China, Western Europe, Australia, the US, and Canada. The labour and tax reforms are the key to making India a global manufacturing hub.
Overall, the India manufacturing theme is fast evolving into its own growth story. The sector currently stands at $450bn in FY23 as compared to the pre-covid level of $330bn in FY19. Therefore, this may be the right time for investors to capture the vast potential of the sector through Axis India Manufacturing Fund.
Axis India Manufacturing Fund Investment approach
Axis India Manufacturing Fund aims to invest in quality stocks. It will try to tap the companies with sustainable growth potential and invest across market capitalizations. The fund will be actively managed and will use a 3-pronged strategy to identify stocks:
- Manufacturing companies investing in factory equipment and R&D to improve production capabilities.
- Industries with rising demand from domestic consumption and premiumization of products.
- Focus on sectors that are becoming net exporters in India
Key Features of Axis India Manufacturing Fund
- Axis India Manufacturing Fund is an open-ended equity scheme that invests in India’s manufacturing sector.
- The fund will invest across 11 sectors, comprising 66 industries, across market capitalization, in both public and private sector enterprises. This will ensure diversification within the fund.
Investments would be made in sectors including Automobiles and auto ancillary, Chemicals, Pharmaceuticals, Textiles, Electrical and Electronics, Food and Beverages, Consumer Durables, Building materials, Defense and Aerospace, Capital Goods and Engineering, and Industrials.
- The NFO will be open to investors from 1st Dec 2023 to 15th Dec 2023.
Why invest in Axis India Manufacturing Fund?
- Rides on the emerging India manufacturing theme
- Offers adequate diversification by sector and market cap
- Potential for long-term wealth creation
- Access to manufacturing theme with a single fund
- Focus on the creation of a quality portfolio
Who is the fund ideal for?
Axis India Manufacturing Fund is a thematic fund playing out on the emerging manufacturing growth potential in India. Thematic funds focus on a specific theme or sector. For instance, an infrastructure-themed fund will invest in sectors like real estate, roads, railways, steel, cement, etc.
Thematic funds are concentrated on a single idea/theme which may take time to potentially unfold. Therefore, they are ideal for informed investors who have a very high-risk appetite. Along similar lines, Axis India Manufacturing Fund is ideal for investors seeking long-term capital appreciation, who have a high-risk appetite, and an investment horizon of over 5 Years.
Investors can invest a minimum of Rs. 500 and in multiples of Re 1 thereafter in case of lumpsum investment. They can invest through SIP with a minimum of Rs. 100 and in multiples of Re. 1 thereafter.
Disclaimer and Risk Factors
Source: www.makeinindia.com, IBEF Report – May 2023, india.gov.in,
www.rbi.org.in/Scripts/BS_SpeechesView.aspx?Id=1385
Data as on 30th September 2023.
Disclaimer: Investments in Mutual Funds and securities market are subject to market risks, read all the related documents carefully before investing. This Content is a purely educational in nature and are in no way an advice or recommendation. The securities are quoted as an example and not as a recommendation. Paytm Money Ltd SEBI Reg No. Broking – INZ000240532, Depository Participant – IN – DP – 416 – 2019, Depository Participant Number CDSL – 12088800, NSE (90165), BSE (6707), BE STAR MF (53873) Red Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi – 110019. For more details , please visit: https://www.paytmmoney.com
Data sources: (rbi.org.in), Avendus Spark, Internal research by AXIS MF fund management team, NSE methodology of Nifty India Manufacturing Index.
