Apart from being cost effective, ETFs let investors invest at real-time prices as opposed to end of day price by sector funds.Axis Mutual Fund has announced the launch of their new fund– ‘Axis Healthcare ETF’. The new fund offers (NFO), which will open on Friday, April 30th, will allow access to investors in the Healthcare sector in a neatly packed bite-sized exchange-traded fund and will be managed by Jinesh Gopani, Head – Equity, Axis AMC. One sector that has emerged during the ongoing Coronavirus pandemic is the pharmaceuticals including the healthcare services that it brings along. For investors, looking to take exposure in this segment, the ETF route may come in handy.
The new fund offer is suitable for investors who are seeking, long-term wealth creation solution through targeted sectoral exposure to the healthcare sector and seeks to track returns by investing in a basket of NIFTY Healthcare Index stocks with an aim to achieve returns of the stated index.
The NIFTY Healthcare Index has been a long-term wealth creator. It comprises the 20 largest healthcare-oriented companies by free-float market capitalization and has the ability to take exposure across the entire healthcare value chain including – Hospitals, Diagnostics players, pharmaceutical manufacturers and R&D players. India’s Healthcare industry has achieved global recognition for its capabilities and strong knowledge base and has strong continued growth potential.
Passive investing in India has gained quite the momentum, either through index funds or exchange-traded funds. It is a low friction investment strategy tracking a specific index as closely as possible. The passive approach of replicating benchmark also leads to a stable portfolio with limited turnover.
Apart from being cost effective, ETFs let investors invest at real-time prices as opposed to end of day price by sector funds. It protects their investments from the inflows and outflows of short-term investors. Furthermore, ETFs are best suited to earn asset-class linked performance and is touted to be one of the most flexible tools for gaining instant exposure to the markets, thereby equitizing cash.
Highlights
- An open ended Exchange Traded Fund tracking NIFTY Healthcare Index
- The fund offers investors an opportunity to invest in the biggest Healthcare companies in India at their own pace as it gives exposure to them all in a neatly packed bite-sized exchange traded fund
- Minimum Investment (NFO) Rs. 5,000 and in multiples of Rs.1 thereafter
- Benchmark: Nifty Healthcare TRI Index
- NFO date: April 30, 2021 to May 10, 2021
On the launch of the NFO, Chandresh Kumar Nigam, MD & CEO, Axis AMC, said “As a responsible fund house, we want to develop, introduce and provide the products that are relevant in the current context as well as in the long term. Accordingly, we recognize the need to offer investors a choice of strategies including robust passive products. Our ETF strategy relies on offering highly innovative yet relatable products to our target investors and we have already seen a number of launches in this space in the last year. The launch of Axis Healthcare ETF continues to take forward our endeavour to build up our passive product suite over time and towards our target of being the preferred manager to investors across the entire spectrum of active and passive products.”
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