Axis Mutual Fund has renamed existing multi cap fund to the newly formed Flexi Cap category keeping in line with its current product positioning.
The open ended dynamic equity scheme invests across large, mid, and small cap stocks to facilitate capital appreciation over medium to long term. The change in name will be effective from January 30, said the fund house.
As part of scheme categorisation and make it true to label, Sebi had insisted that multicap funds should invest 25 per cent each in small, mid and large cap stocks. This has unsettled most multicap schemes as their investment’s were tilted towards large cap stocks.
Following the industry representation, SEBI in November introduced a new category of equity oriented schemes named flexicap.
Axis Flexi Cap scheme, moving to the new category will continue to adopt a flexible approach to allocation and not be constrained by market cap restrictions.
After the revision, Axis Flexicap Fund will invest minimum 65 per cent to maximum 100 per cent in equity and equity related investments, maximum 35 per cent in debt and money market investments and maximum 10 per cent in units issued by REITs & InvITs. Furthermore, the scheme shall invest in debt instruments having structured obligations/credit enhancement as per limit prescribed by Sebi. Not more than 20 per cent of the net assets of the Axis Flexicap Fund can be deployed in stock lending as per the current provisions.
“We have been successfully managing this fund over the last three years and we believe that this change allows existing and prospective investors to participate in the strategy in the best manner,” said the fund house.