Axis India Manufacturing Fund – Direct Growth Plan: Essential Insights for Investors- 2024

The manufacturing sector is a key player in India’s economy and has great potential for growth.

With the government’s “Make in India” initiative, this sector is set for expansion in the coming years. By investing in India’s manufacturing space—especially in areas like healthcare, chemicals, and consumer durables—you can benefit from rising production, innovation, and infrastructure development. One option is the Axis India Manufacturing Fund – Direct Growth. This fund invests at least 80% of its assets in companies that are part of the manufacturing sector and related services.

Today, we’ll walk you through the details of the Axis India Manufacturing Fund and also take a closer look at the Axis India Manufacturing Fund Direct-Growth Portfolio in 2024.

Fund Management and Objectives

The Axis India Manufacturing Fund – Direct Growth is an equity fund that began on December 21, 2023. It is managed by Mr. Shreyash Devalkar and Mr. Nitin Arora.

The fund focuses on long-term wealth creation by investing in companies within India’s manufacturing sector. They aim to help investors benefit from the sector’s potential to grow, innovate, and outperform inflation over time.

Category: Thematic

Fund Managers: Mr. Shreyash Devalkar and Mr. Nitin Arora

Investment Horizon: 5+ years

Benchmark: NIFTY India Manufacturing TRI

Minimum Application Amount: INR 500, and in multiples of INR 1 thereafter

The Axis India Manufacturing Fund – Direct-Growth Plan looks for quality companies through a careful selection process. It focuses on three areas: Investments, Consumption, and Net Exports.

This fund is ideal for investors aiming for long-term capital appreciation by investing in India’s growing manufacturing sector. It focuses on equity and equity-related securities of companies involved in manufacturing.

Performance and Return

The Axis India Manufacturing Fund has shown a strong performance since its inception. 

As of September 30th, 2024, the Axis India Manufacturing Fund Direct Growth NAV is ₹15.05. Over the last six months, the fund has produced an impressive return of 31.31%. It also recorded returns of 8.51% over the past three months and 4.04% over the last month.

The Axis India manufacturing fund direct growth portfolio focuses on a quality-centric approach. Thus, it makes strategic investments in key sectors like healthcare, automobiles, and capital goods, which have contributed to its returns. By taking benefit of opportunities in investments, consumption, and net exports, the Axis India Manufacturing Fund aims to provide capital appreciation.

Explore now- top FMCG companies in India!

Investment Allocation

The Axis India manufacturing fund direct growth portfolio primarily invests at least 80% of its assets in top manufacturing sectors and companies.

Its investment strategy focuses on three key areas: investments in factory equipment and research, companies benefiting from rising domestic consumption, and those involved in net exports. 

This bottom-up approach of Axis India Manufacturing Fund – Direct Growth Plan aims to identify potential growth opportunities within the Indian manufacturing sector.

Top 10 Stocks

1. Bharat Petroleum Corporation Limited – 9.0%
2. Hindustan Aeronautics Limited – 5.9%
3. Cummins India Limited – 5.2%
4. Cipla Limited – 4.2%
5. Bharat Electronics Limited – 4.1%
6. Bajaj Auto Limited – 3.4%
7. Reliance Industries Limited – 3.0%
8. Tata Motors Limited – 2.1%
9. Sun Pharmaceutical Industries Limited – 2.0%
10. Mahindra & Mahindra Limited – 2.0%

Top 10 Sectors

1. Automobile and Auto Components – 27.0%
2. Capital Goods – 22.4%
3. Healthcare – 16.6%
4. Oil, Gas & Consumable Fuels – 9.0%
5. Chemicals – 5.1%
6. Metals & Mining – 4.3%
7. Consumer Durables – 3.5%
8. Construction Materials – 2.7%
9. Construction – 2.3%
10. Realty – 1.7%

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Key Metrics

As of Aug 2024, the Axis India Manufacturing Fund – Direct Growth (AUM) is ₹6,376 cr. It has a low expense ratio of 0.3%. 

Axis India Manufacturing Fund Direct Growth NAV: ₹15.05 (as of September 30th, 2024)

• Return over the last six months: 31.31%
• Return over the last three months: 8.51%
• Return over the last month: 4.04%

Risk Analysis of Axis India Manufacturing Fund

Axis India Manufacturing Fund involves high risk. This is because of the market volatility and price fluctuations. While there is a great chance of good returns and capital appreciation, you should be aware that the principal amount can experience substantial losses. 

The BSE 500 TRI (Total Return Index) is the benchmark for the fund’s performance. 

Taxation on the Axis India Manufacturing Fund

This is how taxes apply to the Axis India Manufacturing Fund:

1. Short-Term Gains: If you sell your investment within one year, any profit (capital gains) will be taxed at 15%.
2. Long-Term Gains: If you hold your investment for more than one year, the profit will be taxed at 10%. There’s no indexation benefit, which means you can’t adjust the purchase price for inflation.
3. Dividends: If you receive dividends from the fund, they will be taxed according to your income tax slab.
4. Tax Exemption: If your long-term capital gains are up to Rs 1 lakh, they are exempt from tax.

Investment Details

Interested in the Axis India Manufacturing Fund for your investment? 

Here’s what to keep in mind:

Minimum Investment:

• Lump Sum Payment: INR 500.00
• SIP: INR 500.00

Lock-in Period: There is no lock-in period for the Axis India Manufacturing Fund Direct Growth.

You can start with a minimal investment and take advantage of its long-term growth potential.

How to Invest in Axis Mutual Funds

You can invest in the Axis India Manufacturing Fund with Shoonya. 

Shoonya offers a free demat account with zero AMC and zero brokerage trading.

You can also use advanced trading tools.

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:

1. Log in to your Shoonya account at trade.shoonya.com. From the “Orders” section, click on “MF order.”
2. Search for the fund you wish to invest in; in this case, Axis India Manufacturing Fund Direct Plan Growth.
3. Choose “Fresh” for a new investment and enter the amount you want to invest.
4. Complete your purchase by clicking the “Purchase” button.
5. A payment link will be sent to your registered email. Use the link to make the payment.
6. 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 the Axis India Manufacturing Fund, follow these steps:

1. Log in to your Shoonya account at trade.shoonya.com. Go to “Orders” and click on “XSIP.”
2. Find the mutual fund for which you want to set up an SIP. In this case, select Axis India Manufacturing Fund Diect Plan Growth.
3. 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).
4. Submit the details, and you’ll receive a Mandate authentication link via email. Approval generally takes 24 hours.
5. Once your Mandate is approved, 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 installments (e.g., 24 installments for a 2-year SIP).

This process will help you invest systematically with ease.

Why You Should Invest in the Indian Manufacturing Sector

The Indian manufacturing sector is growing well.

Here’s why this is a great opportunity for investors:

• High Demand: As more people earn higher incomes, they are likely to spend more. With an increasing number of households and more people moving to cities, demand for goods is rising.
• Government Support: The Indian government is actively supporting the manufacturing sector. This includes encouraging foreign investment.

FAQs| Axis India Manufacturing Fund – Direct Growth

Source: Axismf, ValueResearch

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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.