Investing in global companies opens the door to exciting growth opportunities, especially as innovation continues to drive progress worldwide. What if there was a way to invest in global companies at the forefront of technological advancements? The Axis Global Innovation Fund of Fund Direct Growth achieves this by targeting leading companies in global equity markets. It offers investors a chance to diversify globally and build long-term wealth by investing in innovative companies worldwide.
Curious to learn more?
Let’s explore the Axis Global Innovation Fund of Fund Direct Growth performance for 2024.
Fund Management and Objectives
The Axis Global Innovation Fund of Fund Direct Growth is an equity fund launched on May 28, 2021. Managed by Ms. Krishnaa N, this fund seeks to provide long-term capital appreciation. This fund is designed to invest in companies worldwide, with the potential to outperform inflation over time.
The fund’s main goal is to achieve long-term capital growth by investing in global companies that benefit from technological disruption.
It primarily invests in the Schroder International Selection Fund Global Disruption, which focuses on innovative companies worldwide.
Part of the fund’s money is also invested in safer assets like debt instruments and money market instruments to manage liquidity.
Performance and Returns
The AUM of Axis Global Innovation FoF – Direct Plan Fund is ₹526 Cr as of 31-Aug-2024.
This fund manages Assets Under Management (AUM) of ₹526 crore as of August 31, 2024. The expense ratio is 0.8%, meaning a small percentage of your investment is used to cover the fund’s management costs. It’s important to note that this fund comes with a very high-risk level. This makes it suitable for investors who are comfortable with taking on more risk for the possibility of higher returns.
In terms of performance, the fund has shown promising results. Since its launch, it has delivered a CAGR (Compound Annual Growth Rate) of 9.09%. Over the past 1 year, the CAGR has been a remarkable 29.95%, over the two years it has been 26.04%, while over the last 3 years, it stands at 8.01%.
These returns highlight the Axis Global Innovation Fund of Fund’s focus on sectors that are global growth.
Investment Allocation
As of August 31, 2024, the fund primarily invests in equities, with 97.08% of its assets allocated to stocks. As per Axis Global Innovation Fund of Fund portfolio, a smaller portion, 3.02%, is invested in debt instruments, which provide a bit of stability to the portfolio. The fund also holds a small -0.1% in cash and cash equivalents, which are used to manage short-term liquidity needs.
- Equity (97.08%): This means that most of the fund’s money is invested in stocks of companies.
- Debt (3.02%): A small portion of the fund is invested in safer debt instruments like bonds. This helps to reduce risk.
- Cash & Cash Equivalents (-0.1%): This negative percentage indicates that the fund has slightly less cash than what it would typically need. This is not common but can happen if the fund is fully invested in other areas.
The fund’s top holding is the Schroder International Selection Fund Global Disruption Class X USD Acc, which accounts for 97.08% of the portfolio.
The fund may adjust its holdings from time to time, increasing or decreasing positions based on market conditions.
The axis global innovation fund of fund portfolio holding includes:
- Cash Equivalents
- Derivatives
- Technology
- Communication
- Industrial
- Healthcare
- Financial Services
- Consumer Cyclical
Its top holding is the Schroder ISF Global Disruption XUSDAcc, which represents the fund’s commitment to investing in disruptive technologies.
Portfolio Holdings – Axis Global Innovation Fund of Fund
Domestic Equities (As of 31st May 2024)
| Stock / Issuer | % of NAV |
| ICICI Bank Limited | 4.54% |
| Info Edge (India) Limited | 3.77% |
| Torrent Power Limited | 3.55% |
| Zomato Limited | 3.52% |
| Linde India Limited | 3.52% |
| Siemens Limited | 2.75% |
| Pidilite Industries Limited | 2.67% |
| HDFC Bank Limited | 2.58% |
| ABB India Limited | 2.54% |
| Reliance Industries Limited | 2.30% |
International Equities (As of 31st May 2024)
| Stock / Issuer | % of NAV |
| Microsoft Corp | 1.25% |
| Nvidia Corp Com | 1.08% |
| Taiwan Semiconductor Sp ADR | 0.82% |
| Amazon Com Inc | 0.80% |
| Alphabet Inc A | 0.77% |
| Novo Nordisk A/S – ADR | 0.75% |
| Netflix Inc | 0.75% |
| Merck & Co. Inc | 0.68% |
| Eli Lilly & Co | 0.63% |
| Visa Inc | 0.63% |
Key Metrics
The Axis Global Innovation fund has a wide presence in the market, with its size surpassing the average for similar funds. It has delivered solid returns.
- CAGR over the last 1 month: 0.99%
- CAGR over the last 3 months: 0.83%
- CAGR since last 6 months: 8.73%
Risk and Volatility
When we talk about the risk and volatility of a fund, it refers to how much the value of your investment can go up or down over time.
A fund with a very high risk level, like this one, means that it can experience significant fluctuations in value.
Here are the details of its risk profile:
- Mean Return (%): This is the average return the fund has provided.
The fund has a mean return of 8.33%, while the BSE 500 TRI has a much higher mean return of 18.25%.
- Standard Deviation (Std Dev %): This measures the volatility or how much the returns fluctuate.
The Axis Global Innovation Fund of Fund Direct Growth has a standard deviation of 18.55%, indicating higher volatility.
Higher numbers mean more ups and downs in the returns.
- Sharpe Ratio (%): This measures how much return you’re getting for the risk taken. The fund’s Sharpe ratio is 0.15, which is much lower than the BSE 500 TRI’s 0.97.
This indicates that the BSE 500 TRI provides better returns for the risk taken.
- Sortino Ratio (%): This is similar to the Sharpe ratio but focuses only on downside risk.
The fund’s Sortino ratio is 0.22, while the BSE 500 TRI is much higher at 1.80, meaning the benchmark handles negative risk better.
Taxation
Taxation for the Axis Global Innovation Fund Direct Growth follows specific rules. These include:
- Short-term Capital Gains (less than 1 year)- Taxed at 15%
- Long-term Capital Gains (more than 1 year)- Taxed at 10% without indexation benefit
- Dividends: Taxed at slab rate. Long-term gains up to ₹1 lakh are exempt from taxation.
Investment Details
Want to invest in the Axis Global Innovation Fund of Fund?
Here’s what you need to know:
- Minimum Investment: ₹100 (applicable for both lump sum and SIP investments).
- Lock-in Period: None.
The Axis Global Innovation Fund of Fund direct growth offers flexibility with no lock-in period. You can take advantage of its long-term growth potential.
Invest in axis global innovation fund of fund with SIP or lump sum with a free demat account!
How to Invest in Axis Mutual Funds
You can invest in the Axis Global Innovation Fund of Fund Direct Growth with Shoonya.
Shoonya offers zero brokerage trading, advanced trading tools, 100+ technical indicators and much more.
Investing in Lump Sum Mutual Funds Through the Shoonya Web Platform
Here’s a quick guide on how to invest in lump sum mutual funds through the Shoonya web platform:
- First, you must log in to your Shoonya account at trade.shoonya.com. From the “Orders” section, click on “MF order.”
- Search for the fund you wish to invest in; in this case, Axis Global Innovation Fund of Fund.
- Choose “Fresh” for a new investment and enter the amount you want to invest.
- You can complete your purchase by clicking the “Purchase” button.
- A payment link will be sent to your registered email. Use the link to make the payment.
After payment, your mutual fund units will be allotted to your Demat account within T+2 days.
Note: You can only make the payment using the bank account registered with your Demat account.
Setting Up an SIP for Mutual Funds
If you prefer a Systematic Investment Plan (SIP) for Axis Global Innovation Fund of Fund, you must follow these steps:
- First, you need to log in to your Shoonya account at trade.shoonya.com. Go to “Orders” and click on “XSIP.”
- Find the mutual fund for which you want to set up an SIP. In this case, select Axis Global Innovation Fund of Fund Direct Growth.
- If this is your first SIP with Shoonya, you need to create a Mandate ID. Enter the mandate amount and the validity date (until you want to keep your SIP active).
- You must submit the details, and you’ll receive a Mandate authentication link via email. Approval generally takes 24 hours.
Once your Mandate is approved, you can follow these steps to set up your SIP:
- Go to “XSIP,” enter the SIP amount, and select “Fresh” as the transaction type.
- Choose the date when the SIP will be debited directly from your registered bank.
- The approved Mandate ID will auto-reflect.
- Choose “Monthly” for monthly debits and specify the number of instalments (e.g., 24 instalments for a 2-year SIP).
This process will help you invest systematically with ease.
Why Invest in Axis Global Innovation Fund of Fund?
Here are some of the advantages of investing in Axis Global Innovation Fund of Fund Direct Growth:
- Global Opportunities: This fund gives you access to companies and growing sectors worldwide that aren’t available in India.
- Risk Diversification: Investing globally spreads out your risk and may offer better risk-adjusted returns.
- Schroders’ Expertise: You get the benefit from over 200 years of investment knowledge and global experience.
- Easy to Start: You can invest globally through this fund with a minimum of ₹100.
- Long-Term Wealth Creation: This fund is an ideal strategy for building wealth over the long term.
Current Innovation Themes
The Axis Global Innovation Fund is focused on several key themes:
- New Age Economy: Investing in companies that are part of the digital transformation.
- Smart Manufacturing (Industry 4.0): Leveraging technologies like IoT and AI to enhance manufacturing processes.
- Financial Digitalization (JAM Trinity): Supporting innovative fintech solutions and UPI-based platforms.
Notable Portfolio Companies
The fund’s portfolio includes companies like:
- Zomato Limited
- Hubbell Inc
- Honeywell Automation India
- Siemens Limited
- Delhivery Limited
These companies represent the forefront of innovation in their respective sectors.
Conclusion
The Axis Global Innovation Fund of Fund Direct Growth offers an exciting opportunity for investors looking to tap into global innovation trends. With a strong focus on long-term growth and a diverse portfolio, it aims to deliver attractive returns while managing risk.
FAQs| Axis Global Innovation Fund of Fund
The Axis Global Innovation FoF – Direct Plan is an international equity mutual fund that invests primarily in innovative companies worldwide.
You can invest in Axis Global Innovation FoF – Direct Plan with a minimum of INR 100.00 for lumpsum and for SIP is INR 100.00.
As of September 2o, 2024, the Net Asset Value (NAV) of the Axis Global Innovation FoF – Direct Plan is ₹17.57.
The Axis Global Innovation Fund of Fund is classified as having a very high risk level, reflecting its potential for significant volatility.
Over the past three years, the fund has delivered a return of 7.08%, with an impressive 33.6% return in the last year.
There is no lock-in period for the Axis Global Innovation FoF – Direct Plan.
The expense ratio of the fund is 0.75% as of August 31, 2024. A lower expense ratio can lead to better net returns for investors over time.
Source: ValueResearch , Axismf
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.