Understanding Axis Max Life Sustainable Wealth Index Fund (NFO)
The financial market continuously developing, introducing new investment opportunities for investors. One such recent launch is the Axis Max Life Sustainable Wealth Index Fund, a New Fund Offer (NFO) aimed at long-term wealth creation. This fund is unique in its structure and strategy, blending sustainable investment principles with equity market growth.
What is an NFO?
A New Fund Offer (NFO) is the initial subscription period when an asset management company (AMC) introduces a new mutual fund or unit-linked investment plan (ULIP). During the NFO period, investors can subscribe to the fund at a base price, typically Rs. 10 per unit, before it transitions to market-driven pricing.
Understanding Axis Max Life Sustainable Wealth Index Fund
Axis Max Life Sustainable Wealth Index Fund is a unit-linked fund with a long-term investment horizon. Unlike traditional mutual funds, this fund invests in a well-structured index, ensuring stability and sustainability in returns.
- The fund follows the Axis Max Life Sustainable Yield Index
- It comprises the top 50 companies chosen from a universe of 500 companies.
- No fund manager bias – The index is determined through an algorithmic process.
- Focuses on sustainable, financially sound companies.
- Designed to deliver high returns with reduced volatility.
What is Sustainability in Investing?
Sustainability in investment refers to selecting companies that exhibit financial strength, consistent growth, and long-term profitability without excessive debt. Companies in this fund’s index are selected based on their ability to generate steady returns, maintain stability, and grow without frequent external funding.
Sustainable companies typically:
- Maintain strong profitability.
- Have low debt and financial independence.
- Exhibit consistent long-term growth.
How Does Axis Max Life Sustainable Wealth Index Fund Work?
This fund mirrors the Axis Max Life Sustainable Yield Index, which has shown impressive historical returns:
- 37% growth in the last five years.
- 252% growth in the last 10 years.
- Investment could have grown 9.5 times in the last decade.
By investing in the top 50 sustainable companies, this index fund aims to deliver quality returns with reduced risk. Investors looking for long-term wealth creation can consider this option.
Benefits of Axis Max Life Sustainable Wealth Index Fund
The fund offers several key advantages:
- Triple Benefits
- Life Cover: Provides insurance benefits to the investor’s family.
- Investment Growth: Exposure to high-quality, top-performing stocks.
- Tax Benefits: Eligible under Section 80C and Section 10D of the Income Tax Act.
- Life Cover Features
- If the investor passes away during the policy term, remaining premiums are waived.
- 120 times the monthly premium is immediately provided to the family.
- 1% of the life cover amount is given to the family monthly for up to 120 months.
- Investment Flexibility
- Investors can start with a minimum of Rs. 2000 per month.
- NRIs can invest from Rs. 18,000 per month or $210 USD.
- Subscription at Rs. 10 NAV available till January 16.
Axis Max Life’s Track Record
Axis Max Life has been a leader in launching innovative funds:
- Max Life Nifty Small Cap Quality Fund: Launched in August, returned 37% so far.
- Max Life Midcap Momentum Index Fund: Launched in January, returned 22.4% in a year.
- AUM Growth: Managing Rs. 1.7 lakh crore, with 27% year-on-year growth.
- Solvency Ratio: 198% (as of September 30, 2024).
How to Invest in Axis Max Life Sustainable Wealth Index Fund
Investors interested in this fund can:
- Subscribe through the official Axis Max Life website.
- Use the link provided in the description.
- Invest before January 16 to lock in the initial NAV of Rs. 10.
Final Thoughts
The Axis Max Life Sustainable Wealth Index Fund is a compelling investment option for those looking for long-term growth, financial security, and sustainability. With proven index performance, algorithmic selection, and insurance benefits, this fund is an innovative addition to the market.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Stock market investments involve risks, and investors should conduct thorough research before investing.