Should you invest in Axis Global Innovation FoF?

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Mutual funds are the preferred investment tools for investors who are looking to invest in global markets. An investor can expand his/her portfolio on the basis of how well the global economy is performing and benefit from its growth.

Recently, the Axis Mutual Fund has announced the launch of its new fund- Axis Global Innovation Fund of Funds. With this FoF, the investors will soon have a new option available to invest in foreign markets.

Axis Global Innovation FoF, is a Fund of Funds, which means that any investment made will go into another international fund and not directly into the foreign stocks. Investments made to Axis Global Innovation FoF will go to Schroder International Selection Fund Global Disruption. Being in the equity category, this fund can lead to good returns, if the investment is made for a long period of time. About 57% of this fund is in the American market and more than 10 % in developed countries of Asia.

The subscription period for this new fund offer (NFO) is from 10 May to 21 May. The net asset value (NAV) is not decided during NFO. The investors will be able to buy once the NAV is decided and units are allotted to this fund.

The minimum amount that one can invest during the new fund offer is Rs 500. At the same time, if one redeems up to 10% of the amount, within a year of the unit allocation, then there will be no exit load. But at the same time, if you redeem more than 10%, then a 1% exit load will be incurred. There are no charges for withdrawing money after 1 year.

At the NFO launch, Axis AMC MD and CEO, Chandresh Kumar Nigam said, “At Axis AMC, we have been at the forefront of successfully developing product innovation and diversifying solutions. We aimto create a long-term earning option for investors.”

Should you invest in this FoF?

The director of financial advising company Anchor Edge, Jigar Parekh, says that such funds provide diversification in the portfolio of investors.

In India, investors can diversify their funds, but the facility to invest in shares directly on the global stage is limited. Such ‘Fund of Funds’ gives investors the opportunity to invest in the global market (International Funds). Parekh advises that before investing in this fund, the investor should assess their portfolio.

Parekh further states that one should keep a time frame of at least 4 to 5 years when investing in such funds. Under the supervision of a financial advisor, 4 to 5% of allocation can be done in such funds.

Vishal Shah, a certified financial planner says, ” The world has opened its doors for Indian investors today, 10 years ago this was not the case. Now you can invest in FoF, which means that your money is invested in a company’s mutual fund or in another fund of the same company. “