Axis Mutual Fund has launched a new global fund of funds or FOF called Axis Nasdaq 100 Fund of Fund. It is a complete fund of fund plan that invests in ETF units based on the Nasdaq 100 TRI. The fund will be managed by Hitesh Das. The NFO is open for registration until October 21. The fund will be benchmarked against the Nasdaq 100 TRI.

Axis Mutual Fund officials said that the plan will invest in ETFs such as Xtrackers Nasdaq 100 UCITS ETF, iShares Nasdaq 100 UCITS ETF, and Invesco EQQQ Nasdaq-100 UCITS ETF among others. Although investing through FoFs is easier than ETFs, investors should know that FOFs usually charge a high expense ratio, and it has a big disadvantage when it comes to taxes as FOFs would be taxed as a debt investment despite the investment being made in stocks.

“As investors mature and become more interested in their wealth creation journey, the paradigms of asset allocation are changing as well. With global boundaries slowly blurring, investors are eager to gain access to some of the global growth stories, which were previously impossible for simplicity. With the Axis Fund NASDAQ 100, we are bringing investors the opportunity to gain global exposure. We are confident that the fund’s philosophy and underlying structure will make it a valuable addition to investors,” said Chandresh Nigam, MD & CEO, Axis AMC.

Should you invest?
Since international investment through mutual funds is accessible by Sebi, fresh investments through international funds have been stopped for now. The limit has not been increased by Sebi so far. Global FOFs are a good option for investors to gain international exposure. However, mutual fund advisors believe that one should look at the existing schemes in the market.

“If an investor is looking to have international exposure in his portfolio, then he can explore investing in this Fund. Investing abroad directly comes with several challenges, and therefore the FOF method makes it easier. However, it is recommended not to invest more than 5-8% of the portfolio is in those funds. There are many existing FOFs in the same category. It would be comparatively better to invest in existing global FoFs where you can track past performance and other parameters,” says Nidhi Manchanda, Chartered Financial Planner, Head of Training, Research and Development at Fintoo, a financial planning company based in Mumbai.

Funding at a glance:
Housing Fund: Axis Mutual Fund

Version Opened: 07-Oct-2022

Closed Release: 21-Oct-2022

Type: Opened

Category: International

Min. Investment: Rs.500

Programs: Growth, IDCW

Leave Load: 1% for redemption within 7 days

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