The Axis Max Life Sustainable Wealth 50 Index Fund is a passively managed, equity-oriented fund designed to mirror the performance of the Axis Max Life Sustainable Yield Index. This index comprises 50 stocks selected based on their high percentile scores in Dividend Yield (for financial stocks) and Free Cash Flow (FCF) Yield (for non-financial stocks). The primary objective of the fund is to balance income generation and robust cash flow, while adhering to regulatory requirements.
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The fund’s underlying index is drawn from the Nifty 500 Index, which serves as its stock universe. As a result, the fund offers a diversified portfolio, encompassing stocks from various sectors and industries across different market capitalizations. However, it excludes investments in Axis Bank, Max Financial Services, and other companies within the Max Group, as per its investment policy.
Portfolio Structure and Weighting
The Axis Max Life Sustainable Yield Index follows an equal-weighted structure, meaning that the 50 constituent stocks in the fund’s portfolio are assigned equal weights, subject to sector and stock-specific capping limits.
Annual Reconstitution
To ensure the portfolio remains aligned with its objectives, the 50 stocks in the index undergo annual reconstitution. This process takes place on June 15th each year, during which the stock composition of the fund may change based on updated criteria and performance metrics.
The Axis Max Life Sustainable Wealth 50 Index Fund provides a structured, transparent approach to investing in high-quality, cash-flow-strong companies, making it an attractive choice for investors seeking a balanced and diversified equity investment.
The Axis Max Life Sustainable Wealth 50 Index Fund is a passively managed equity fund offered as part of Axis Max Life’s Unit Linked Insurance Plans (ULIPs), including the Online Savings Plan and the Flexi Wealth Advantage Plan. This fund, with its equity-oriented investment strategy, is categorized as a high-risk option, making it suitable for policyholders with a higher risk appetite. Here are some compelling reasons why policyholders might consider adding this index fund to their portfolio:
- Potential for High Long-Term Growth
Invest in companies with strong fundamentals, such as high dividend yields (for financial companies) or high free cash flow yields (for non-financial companies), to benefit from significant growth potential over the long term. - Inflation-Beating Returns
Achieve financial goals with long-term returns designed to outpace inflation, ensuring wealth preservation and growth over time. - Diversification Across Market Cap and Sectors
Enhance portfolio stability by diversifying equity investments across various market capitalizations, sectors, and industries, reducing the risk of over-concentration. - Passively Managed and Transparent
Enjoy the advantages of a passively managed equity fund with a transparent, factor-based stock selection process that minimizes fund manager bias. - Life Cover with Capital Appreciation
Combine the benefits of life insurance with potential capital growth, making it a valuable addition to Axis Max Life ULIP offerings.
This fund is an excellent choice for investors seeking a balanced approach to wealth creation and life protection, while capitalizing on the growth opportunities of a diversified equity portfolio.
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