Axis Nifty 100 Index Fund
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Business Overview
The Axis Nifty 100 Index Fund is a passive investment option that aims to replicate the performance of the Nifty 100 Index, comprising the top 100 large-cap companies in India. It is ideal for investors seeking long-term growth through equity exposure while minimizing risks associated with individual stock selection. This fund matters as it provides a diversified investment avenue, making it suitable for both new and seasoned investors looking to build wealth over time.
- Replicates Nifty 100 Index performance
- Diversified exposure to top 100 large-cap companies
- Ideal for long-term wealth creation
- Lower expense ratio compared to actively managed funds
- Suitable for both new and experienced investors
Investment Thesis
The Axis Nifty 100 Index Fund presents a compelling investment opportunity due to its strong backing from a credible promoter group, significant growth potential in digital services, and attractive valuations compared to its peers. This fund is well-positioned to capitalize on India's economic growth.
- Strong promoter group with a proven track record in asset management.
- Significant growth expected in digital services, enhancing fund performance.
- Attractive valuation metrics compared to peer index funds.
- Diversified exposure to top-performing Nifty 100 companies.
- Ideal for long-term investors seeking stable returns.
Opportunity vs Risk
- Diversified exposure to top 100 stocks
- Potential for long-term capital appreciation
- Low expense ratio compared to peers
- Suitable for passive investment strategy
- Market volatility may impact returns
- Limited to Nifty 100 performance
- Economic downturns affect overall market
- No active management to mitigate losses
Peer Perspective
Axis Nifty 100 Index Fund trades at a slight premium compared to peers like HDFC Nifty 50 Index Fund and ICICI Nifty Next 50 Index Fund. A consistent growth in underlying assets could trigger a rerating.
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10BusinessHighThe fund is invested in a diversified portfolio of large-cap companies, which are generally in future-ready sectors.
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10GrowthHighThe fund has shown consistent revenue and profit growth due to its exposure to top-performing companies.
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10ProfitabilityHighThe underlying companies exhibit strong ROE and ROCE, with healthy operating cash flows.
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8ValuationHighValuation metrics like P/E and P/B are in line with peers, indicating fair pricing.
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7BalanceHighThe fund's underlying companies maintain a reasonable debt/equity ratio and good liquidity.
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6GovernanceGoodPromoter holding is stable, with minimal pledging and good disclosure practices.
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5DriversGoodThe fund benefits from strong market drivers but faces execution risks in volatile markets.
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5TechnicalsGoodMarket sentiment is generally positive, but liquidity can fluctuate.