Axis MF has launched its Nifty 500 Quality 50 Index Fund, augmenting its suite of factor based passive funds.
Thee key filters ensure selection of the best quality stocks from Nifty 500: high RoE, low leverage and consistent earnings growth.
Quality stocks have demonstrated a track record of outperforming broad market over time as well as reducing drawdown during market corrections – thus offering investors a more rewarding investment journey.
Well managed companies with sound governance practices (quality) have been big gainers from the Government’s efforts over the last 10 years to formalize our economy. With formalization now irreversible, quality can continue commanding the premium it does in the market.
A portfolio assembled on purely quality focused objective parameters – agnostic of sectors and cap sizes – is strikingly different from the usual diversified fund portfolios found in flexicap / multicap funds.
Industrials for example have a higher weight in this portfolio than financials – which almost always are on top in most portfolios given their dominant position in the index.
Vikash argues that the long term outperformance track record of this index coupled with its highly differentiated portfolio make this fund a strong contender for being added as a core holding in every investor’s equity portfolio.