 "Axis MF launches new close-ended equity scheme")
Axis Mutual Fund has launched 'Axis Small Cap Fund', a close-ended equity scheme with a 5-year lock-in period, a company release said.
As per the fund house, the scheme will be open-ended after the completion of five years.
The new fund offer, which has opened for subscription from November 11, will be closed on November 25, 2013.
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This scheme aims to generate long-term capital appreciation from a diversified portfolio of equity and equity-related instruments of small cap companies.
"Selective small caps have historically outperformed over large caps over a long period of time...
"The valuation gap between small and mid or large caps has widened over the last few years and this presents us with an opportunity to pick quality-strong business operating in niche markets with healthy balance sheets at lower prices," Managing Director and Chief Executive Officer of Axis MF, Chandresh Kumar Nigam said.
The fund house also said while the initial 5 years close- ended structure seeks to address liquidity of small caps, the subsequent open-ended nature will provide flexibility to investors.
Axis AMC is a joint venture between Axis Bank and UK based Schroders.