Pune, 26 June 2023: Axis Mutual Fund, one among the fastest growing fund houses in India, announced the launch of their New Fund Offer – Axis Nifty IT Index Fund, an open-ended index fund tracking the NIFTY IT TRI. Mr. Hitesh Das (Fund Manager) would be managing the fund. Axis Nifty IT Index Fund will track the NIFTY IT TRI and aim to provide returns before expenses that correspond to the total returns of the NIFTY IT TRI, subject to tracking errors. The minimum investment amount is Rs. 5,000 and in multiples of Re.1/- thereof. The NFO opens for subscription from 27th June 2023 to 11th July 2023.
The main objective of an Index Fund is to replicate a stock market index in terms of the portfolio. All the stocks in these indices will find some representation in their investment portfolio. Essentially, this ensures a performance fairly identical to that of the index being tracked. Within Index Funds, investors have the option to invest in certain Sector Based Index Funds as well, with the aim to capitalize on the growth opportunity provided in that particular sector.
Leveraging the opportunity in India’s growing IT landscape
Technology is a focal point for all businesses, across sectors. All organisations, big or small, are reshaping and accelerating their businesses through new age technology like cloud computing, machine learning, augmented reality, artificial intelligence etc. Consequently, this sector usually sees better than expected demand. Indian technology companies have been consistently increasing their market share vis a vis global peer. India’s IT and BPM exports have outperformed global IT services growth. With exports of over US$ 194 billion annually, the IT space is the largest single service exporter industry in India.
As per NASSCOM, the industry is estimated to grow to $245 billion, reflecting an incremental net revenue addition of $19 billion for the year. The growth has been seen in IT services, BPM, software products, ER&D, and the domestic market.
The external headwinds faced in 2022 resulted in valuations of IT companies becoming far more reasonable. Companies are now trading at discount to last 3/5 years’ average multiples. These attractive valuations and a better-than-expected earnings season in Q1FY24 could lead to recovery in revenue momentum from second half of FY24.
B. Gopkumar, MD & CEO, Axis AMC said, “India has been a leader in driving change through technology across sectors. This has been more visible in the last three years, post Covid where we showed our resilience and resurgence. We are in the cusp of rewriting our growth story led by technological innovations. Increasingly all companies will be operating in this digital arena. With the launch of the Axis Nifty IT Index Fund, we are expanding our bouquet of products, more importantly, offering our investors an opportunity to be part of India’s tech enabled story.”