Axis Mutual Fund has launched a new fund offer of ‘Axis Technology ETF’. The Exchange Traded Fund offers investors an opportunity to invest in a basket of the biggest IT companies in India. The new fund offers closes on March 23.

The fund is designed in a manner that it tracks the performance of the NSE IT index that tracks the 10 largest IT companies by free float market capitalisation listed on the NSE. With exports of over $100 billion annually, the IT space is the largest service exporter. Nifty IT Index has outperformed the Nifty over the long-term.

The IT sector growth has accelerated on the back of significant push by corporates on adopting new age technology and digital platforms. Indian companies have invested extensively in upgrading their capabilities in this space and are gaining market share consistently.

Additionally, Indian IT companies have continued to optimise capital use and have returned significant capital by way of dividends and buy backs. The high PEG of the sector reflects its resilient business models, growth prospects and low debt.

Chandresh Kumar Nigam, Managing Director, Axis AMC said the launch of Axis Technology ETF continues to take forward the endeavour to build a passive product suite over time.

Kotak’s Nifty Next 50

Kotak Mutual Fund has filed papers with SEBI for launching Nifty 50 Index Fund. The passively managed fund tracks the component of the index. The ETF will provide broad market exposure, low operating expenses and low portfolio turnover. The investment objective of the scheme is to replicate the composition of the Nifty 50 and to generate returns that are commensurate with the performance of the Nifty-50 Index.

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