Axis Mutual Fund on Wednesday launched an exchange-traded fund focused on technology stocks. The new fund, Axis Technology ETF, opens on Thursday and closes on March 23. It will track the Nifty IT index, and offers investors an opportunity to invest in the biggest IT companies, the fund house said. It said globally, passive funds have been the fastest growing investment segment over the past several years as investors have warmed up to their simplicity and low cost-efficient structures. Passive investing has been gaining ground over the last few years in the domestic market as well, primarily due to wider participation of retirement trusts and greater investor awareness and maturity.
The new scheme will undergo changes on the fund allocation across asset classes, an official statement said. Peeved at fund houses allocating a bulk of multicap fund investments in large cap stocks, capital markets regulator Securities and Exchange Board of India (Sebi) had in September asked fund houses to ensure at least 25 per cent of the assets under management are invested in small cap, mid cap and large cap stocks to ensure proper nomenclature. As per a September media report, Axis Multicap Fund would have had to increase its midcap exposure by 14.3 per cent and small cap exposure by 16.1 per cent to comply with the Sebi requirements.
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