Fund Outlook – Axis Nifty Midcap 50 Index Fund<\/strong><\/p>\n\n\n\nAxis Nifty Midcap 50 Index Fund aims to mirror the performance of the Nifty Midcap 50 Index, which captures the movement of the mid-cap segment of the market. The scheme endeavours to invest in securities in similar proportion as the underlying index to generate parallel returns, subject to tracking errors.<\/p>\n\n\n\n
The scheme endeavours to replicate the underlying index that represents the top 50 Mid-cap stocks from the NIFTY Midcap 150 index based on defined criteria. Midcaps are considered future large caps and offer higher potential for growth while being prone to significantly higher risk.<\/p>\n\n\n\n
The scheme offers investors a diversified portfolio that focuses on sustainability for picking stocks and provides access to top 50 midcaps by market cap in a single fund. The fund manager will mirror the index, which identifies and invests with an aim to capture the growth phase of emerging companies. The fortune of this scheme will depend on the performance of the underlying index.<\/p>\n\n\n\n
However, investment in Mid-cap stocks is considered a high-risk, high-return investment proposition. They may be prone to higher market volatility in the near term, as the looming threat of the Omicron variant, RBI’s stance of monetary policy normalisation amidst the inflationary pressures, and the recent geopolitical tensions between Russia-Ukraine with a surge in crude oil prices may pose a risk to the economic growth and would have an adverse impact on mid-sized companies. This may weigh down the NIFTY Midcap 50 Index and its top constituents.<\/p>\n\n\n\n
After the swift rally seen in the last 18 months, the margin of safety in mid and small caps appears to be narrow, and the direction of the equity markets from the current elevated levels is uncertain. These factors, among many others, could have a bearing on the scheme’s performance, and the portfolio may face intensified volatility in the near term.<\/p>\n\n\n\n
Thus, Axis Nifty Midcap 50 Index Fund is suitable for investors with a long investment horizon of at least 5-7 years and a high-risk appetite to sustain the market volatility; however, you should ensure that your investment objective is aligned with the fund.<\/p>\n\n\n\n
This article first appeared on PersonalFN\u00a0here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"India is in the midst of a secular development phase, where various emerging companies are showcasing their potential for growth. In addition to an established track record, these companies are flexible and have evolving business models that carry moderate risk. As a result, investors may consider taking advantage of the growth phase of these emerging…<\/p>\n","protected":false},"author":7,"featured_media":4226,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cybocfi_hide_featured_image":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/4225"}],"collection":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/comments?post=4225"}],"version-history":[{"count":1,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/4225\/revisions"}],"predecessor-version":[{"id":4227,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/4225\/revisions\/4227"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/media\/4226"}],"wp:attachment":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/media?parent=4225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/categories?post=4225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/tags?post=4225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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