BOI Axa Multicap fund – NFO Review

BOI Axa MF has come up with multicap fund that would open for subscription on 10 June, 2020. Following a Multi Cap mandate, the fund aims to invest in stocks across market capitalisation i.e. large cap, mid cap, small cap stocks. Investing in a multicap fund is a good idea as its more diversified by Market Capitalisation.  Following is the Asset Allocation strategy for Multi cap funds.

Objective

The fund is an open-ended scheme with an investment objective to generate long-term capital appreciation by investing predominantly in equity and equity-related securities across various market capitalisation as the fund manager might deem fit. At the same time, there is no assurance that the investment objective of the fund will be achieved. The scheme in no way assures or guarantees any returns.♥

The benchmark of this fund is S&P BSE 500 (TRI) , out of 53 Multicap Funds 17 funds are benchmarked against S&P BSE 500 (TRI) and the rest against NIFTY 500 TRI.

Fund Manager is Mr. Alok Singh and he has arouond 19 years of experience in this Industry. And he manages the  following funds too:

Here are a few reasons to invest in multi cap funds.

1) Multicap mutual funds does not restrict its investment portfolio in one market cap. It can invest across large cap, midcap and small cap stocks. This provides larger scope of investment options to the fund manager. Even for investor, this would be like diversification of portfolio with single fund.

2) Investors can select a couple of funds from such multicap segment instead of investing in several funds from large cap funds or midcap MFs or smallcap mutual funds.

3) Provides risk mitigation in volatile markets.

Should you invest in this NFO: My view is that you can give a miss to this NFO. 

1. Primary reason is that there are lot of established Multicap funds available to explore to there is nothing unique in this fund.
2. All BOI Axa Equity funds are on the High expense side, this is due to the small AUM they manage so i see a big difference here.
3. As pointed the Assets they manage is too less, though it has both Merits and Demerits, but this is not the time to explore on this.
4. As the current opportunity is very unique its better to give our money to some existing funds and ride the upcoming bull rally.

Though Multicap funds are my favourite as its a blend of all Equity Funds, i will not recommend to Invest in this NFO at the current juncture. Instead you can look at some the funds with very strong track record given in this post of mine

                                                             Best Multicap funds

Happy Investing!

R♥Vi

Disclaimer: The information contained in this document is compiled from third party and publically available sources and is included for general information purposes only. Views expressed cannot be construed to be a decision to invest. The statements contained herein are based on current views and involve known and unknown risks and uncertainties. The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice.

Past performance may may not happen in the future. Data as of 18th June 2020.