Axis Consumption Mutual Fund: Invest in New Famous Fund of Consumption

Table of Content

• Introduction
• Axis Consumption Mutual Fund: A Brief History
• Important Axis Consumption Mutual Fund Characteristics
• Advantages of Axis Consumption Mutual Fund Investing
• Things to Think About Before Investing in Axis Mutual Funds
• Who Oversees the Axis Mutual Fund?
• Does Investing in the Axis Consumption Mutual Fund have any Tax Implications?
• Conclusion

The Axis Consumption Mutual Funds stands out as an appealing investment choice for those who are seeking to profit from the increasing demand for consumer products and services in a world where consumer spending leads to economic growth.Those investors who are looking to concentrate on businesses that profit from rising demand.

Axis Consumption Mutual Fund: A Brief History

The primary objective of the Axis Consumption mutual fund is to invest in the stock and business related consumption topic. This covers industries including consumer durables, retail, fast-moving consumer goods (FMCG), and services that meet consumers’ daily requirements. The fund leverages these industries’ development potential to give investors long-term financial appreciation.

Important Axis Consumption Mutual Fund Characteristics

Here is the main characteristic of this consumption fund:

Emphasis on Consumer Growth

This fund mainly focuses on the businesses that invest in consumer service and rise with consumer spending. The demand to increase consumer goods and services is predicted to increase as the economies and disposable income. This will give the fund a chance to grow within the market.

Diversity

Consumption funds offer diversification across various consumer industries because there are different consumption equities and different sectors, which will help the fund reduce risk in the volatile market.

• Expert Management: To find attractive investment possibilities in the consumer sector, the fund’s managers, who have extensive expertise in the field, do in-depth research and analysis. Their knowledge is useful in choosing equities with promising future development prospects.
• Long-Term Investment Perspective:Investors with a long-term investment perspective can choose the Axis Consumption Mutual Funds. It seeks to profit from returns’ compounding impact as long as consumer spending keeps rising.

Advantages of Axis Consumption Mutual Fund Investing

Investing in this fund provides a variety of advantages across consumption mutual fund:

• Exposure to a Growing Sector:Investing in the consumer sector might provide substantial growth potential given the growing emphasis on consumerism in India and other emerging nations. By making investments in businesses that are positioned to gain from growing consumer demand, the fund takes advantage of this trend.
• Inflation Protection: Businesses in the consumption sector are often more robust during inflationary times because they may pass price increases on to customers. This may aid in safeguarding the fund’s investment value.
• Possibility of High Returns:Historically, the consuming sector has performed well, especially when the economy has grown. Investors who purchase Axis Consumption Mutual Fund may profit from capital growth as the industry develops.
• Provide Liquidity:Compared to other investment opportunities like real estate, mutual funds offer liquidity since investors can redeem their units at any moment.

 Things to Think About Before Investing in Axis Mutual Funds

• Market Volatility:Although the consumer sector is not immune to market volatility, it may be robust at times. The net asset value (NAV) of the fund may fluctuate, therefore investors should be ready for it.
• Expense Ratios:Keep an eye on the fund’s expense ratios, as increased costs may have an effect on total returns. Examine many funds to select one with reasonable fees.
• Investment Objectives: Make sure that your Axis Consumption Mutual Funds investments complement your overall investment plan and financial objectives. When making a choice, take your investment horizon and risk tolerance into account.

Who Oversees the Axis Mutual Fund?

The CEO of Axis AMC, an asset management company is B. Gopkumar the Managing Director (MD) and Chief Executive Officer (CEO) of Axis Mutual Fund as of March 2023. Gopkumar contributes substantial knowledge in sales, distribution, marketing, and the creation of digital ecosystems to his more than 28 years of experience in the financial services industry. He joined Axis Securities in October 2019 and served as its MD and CEO before taking on his current position at Axis Mutual Fund. Gopkumar assumed the leadership role at Axis Mutual Fund after former MD and CEO Chandresh Nigam decided to resign from his role.

Does Investing in the Axis Consumption Mutual Fund have any Tax Implications?

Like any mutual fund investment axis has its own tax implications that investors need to be aware of. Here is a brief description of its tax implication on its investments:

1. Tax on Capital Gain

Tax implication on the capital gain is the profit from the sale of the axis consumption units are liable to capital gain, the duration of your investment will decide the tax according to your tax slab.

• Short Term Capital Gain

The investments that are sold before one year’s time its known as short term capital gain, the tax is applied as 15%.

• Long Term Capital Gains: Capital gains that are defined as long-term are those that occur when you keep onto your investment for a period longer than a year. Without the advantage of indexation, long-term capital gains over ₹1 lakh in a fiscal year are subject to 10% taxation.

2. The DDT (Dividend Distribution Tax)

If dividends are paid out by the Axis Consumption Mutual Fund, Dividend Distribution Tax (DDT) may be applicable. However, the fund’s structure and the current tax rules determine the tax ramifications. For the time being, investors’ taxes on dividends are determined by the appropriate income tax bracket.

3. The Benefits of Section 80C Taxation

Investments made in particular mutual funds that satisfy the eligibility conditions for Equity Linked Savings Schemes (ELSS) are eligible for tax deductions under Section 80C of the Income Tax Act. However, as Axis Consumption Mutual Fund is not an ELSS, it is not eligible for tax advantages under this condition.

4. Making Tax Payments

Investors are required to record any capital gains from the sale of mutual fund units on their income tax returns. Having complete records of every purchase and sale is essential for accurate reporting.

Conclusion

To conclude, the axis consumption mutual fund it covers the whole consumption strategy in the mutual fund industry, in which it offers various benefits that will give investors the freedom to invest in the popular scheme that is trending in the market with low risk and a healthy portfolio. However, this fund also follows bottom up investing strategy and provides value investing to create a solid portfolio. If the investors invest in this scheme with SIP (Systematic Investment Plan), then they can gain the goodies of a systematic plan, which are rupee cost averaging and the power of compounding, with this plan you can invest with a small amount monthly to create a discipline investing.