BOI Axa Multi Cap Fund NFO – Should you invest?

BOI Axa Multi Cap Fund NFO – Should you invest?

BOI Axa MF has come up with multicap fund that would open for subscription on 10 June, 2020. Multicap mutual fund invests across market capitalization such as large cap, midcap and smallcap stocks. If you are thinking of investing in mutual funds that does not stop in just one segment of market capitalization, investing in multi cap mutual funds could be a nice idea. However, choosing a good multicap mutual fund could be key to get good returns. What are the issue details of the BOI Axa Multi Cap Fund? Should you invest in BOI Axa Multi Cap Fund?

Also Read: Top 10 Largecap Funds to invest in 2020

Issue details of BOI Axa Multi Cap Fund (NFO)

This is an open-ended equity mutual fund scheme.

This scheme would open for subscription on 10 June, 2020.

This scheme would close for subscription on 26 June, 2020.

Since this is an open ended scheme, it would again open for subscription after 5 business days from the date of allotment of Mf units after the NFO period. It would reopen again from 1 July, 2020 for fresh subscriptions.

This scheme is available in both regular and direct plans.

This plan offers both growth option and dividend option.

This scheme is available for lump sum and SIP investment.

Minimum investment is Rs 5,000 and in multiples of Rs 1 there-off for lump sum investments.

Minimum investment is Rs 1,000 per month for monthly SIP and for a tenure of 6 months.

The NAV of the fund is Rs 10 per unit during the NFO initial subscription.

There is no entry load to invest in this fund.

There is no exit load in this scheme.

This scheme is classified as MODERATELY HIGH risk scheme.

Scheme total expense ratio (TER) is estimated at a maximum of 2.25%.

BOI Axa Multi Cap Fund Prospectus can be downloaded here.

What is the investment objective of BOI Axa Multi Cap Fund NFO?

The investment objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity-related securities across various market capitalisation.

There is no assurance or guarantee that the investment objective of the scheme will be realized.

Who is eligible to invest in this mutual fund scheme?

The following can invest in this scheme.

1) Resident adult individuals, either singly or jointly.

2) Minors through Parents/Lawful Guardian.

3) Hindu Undivided Family (HUF) through its Karta.

4) Partnership Firms in the name of any one of the partners.

5) Proprietorship in the name of the sole proprietor.

6) Companies, Body Corporate, Societies, Association of Persons, Body of Individuals, Clubs and Public Sector Undertakings registered in India if authorized and permitted to invest under applicable laws and regulations.

7) Banks

Complete list of eligible participants who can invest can be checked in prospectus of this new fund offer.

Who is the Fund Manager of BOI Axa Multi Cap Fund?

The Fund Manager is Mr. Alok Singh (Chief Investment Officer).

What is the benchmark for this scheme?

The benchmark for this scheme is S&P BSE 500 Total Return Index.

What is the allocation pattern in this mutual fund scheme?

This fund investment pattern is as follows:

1) It invests 65% to 100% in equity and equity related Instruments. The risk profile in this segment is high.

2) It would invest 0% to 35% in debt, including corporate debt and money market instruments. The risk profile in this segment is low to medium.

3) It would invest 0% to 10% in units issued by REITs and InvITs. The risk profile in this segment is medium to high.

Why to invest in the BOI Axa Multi Cap Fund?

Here are a few reasons to invest in such 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.

Some key risk factors you should consider before you invest in such funds

One should consider some of these risk factors / negative factors before investing.

1) Multicap funds invests in small cap and midcap stocks that are high risk.

2) Multicap funds does not suit for low to moderate risk investors as it invests even in midcap or small cap stocks.

3) You can refer complete risk factors of investing in this particular scheme in SID / KIM / NFO prospectus.

Also Read: Best Performing Multicap Mutual Funds to invest

Should you invest in the BOI Axa Multi Cap Fund NFO?

The BOI Axa Multi Cap Fund is a diversified mutual fund that invests across large cap, midcap and smallcap segment. This is for high risk investors as it contains midcap and smallcap asset class. This is a new mutual fund scheme and does not have past performance and one cannot assess how it would perform in the future. If you are a high risk investor and would like to test with new multi cap funds, you can invest. Otherwise, you can invest in some of the existing top performing multicap mutual funds that had already proven its performance in the last 5-10 years.

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Suresh KP

BOI Axa Multi Cap Fund NFO Review

Suresh KP

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