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Axis Max Life Smart Innovation Fund NFO
Businesses need to evolve and they tend to do this by finding smart solutions to the challenges they are facing or by developing new products/services/technologies that disrupt the space they operate in. This is only possible through innovation and companies that innovate successfully have the potential to emerge as industry leaders no matter what their chosen field.
Disclaimer:
In Unit Linked Policies, the investment Risk in the investment portfolio is borne by the policyholder.
With Axis Max Life Investment Plans
Growth Potential: Smallcap companies can become midcap or even largecap companies in the future.
Unbiased Stock Selection: Prebuilt portfolio to match the components of the index result in unbiased stock selection.
What is the Axis Max Life Smart Innovation Fund?
The Axis Max Life Smart Innovation Fund is an actively-managed equity fund that will primarily invest in equity stocks of companies that are at the forefront of innovators. Since innovation is not specific to any market cap or industry, the Axis Max Life Smart Innovation Fund will have the flexibility to select stocks in a sector/industry and market-cap agnostic manner.
As per the fund’s mandate, at least 70% and up to 100% of the fund’s investible assets will be invested in equities. While the remainder of the fund’s assets accounting for up to 30% of investments may be made in debt instruments such as corporate bonds and government securities.
The Nifty 500 Index will serve as the stock universe for this fund and its performance will be benchmarked against the Nifty 500 Total Returns Index (Nifty 500 TRI). Due to the actively managed nature of the fund, a dedicated fund management team including a team of analysts will actively pick and invest in stocks with the aim of outperforming the benchmark index. Additionally, due to primarily being invested in equities, the fund is categorised as a high risk investment.
Apart from equities, the fund would also have the flexibility to invest in debt instruments such as Government Securities, Corporate Bonds and Money Market Instruments or Equivalents. While innovation is not limited to any specific sector/industry, stocks of companies belonging to emerging industries and themes such as big data, AI, healthcare, Fintech, etc. are expected to be part of the fund’s portfolio. This will allow investors to gain exposure to various new and upcoming industries, sectors and themes that might otherwise be unavailable to them.
Axis Max Life Smart Innovation Fund – Facts at a Glance
Below is a snapshot of some key details of the Axis Max Life Smart Innovation Fund that investors should know:
| Category | Details |
|---|---|
| Benchmark Index | Nifty 500 Total Returns Index (TRI) |
| Fund Type | Actively Managed Equity Fund |
| SFIN | ULIF03301/03/25INNOVATION104 |
| New Fund Offer (NFO) Period | 5 March to 20 March 2025 @ Rs. 10 per unit |
| Risk Profile | Very High |
| Asset Allocation Limits |
Equities: 70% - 100% Government Securities: 0% - 30% Corporate Bonds: 0% - 30% Money Market Instruments/Equivalents: 0% - 30% |
| Investment Objective | The fund will focus on investing in innovative companies and businesses benefiting from the evolving innovation ecosystem with the objective to generate long-term capital appreciation. |
How to Invest in the Axis Max Life Smart Innovation Fund?
The Axis Max Life Smart Innovation Fund will be offered as an investment option through Unit Linked Insurance Plans (ULIPs) of Axis Max Life Insurance. New as well as existing Axis Max Life ULIP investors will be able to invest in the new thematic equity fund through Max Life Online Savings Plan and Max Life Flexi Wealth Advantage Plan. During the NFO period between 5th March and 20th March 2025, units of the fund will be available to investors at Rs. 10 per unit. Subsequent to completion of the NFO period, other Axis Max Life ULIP plans would also offer this fund as an investment option.
Being offered as part of Axis Max Life ULIPs, investors will also receive the benefit of life cover which is built into the product. As a result, investors can look forward to receiving the dual benefit of inflation-beating returns and life cover benefit in a single package.
Stock Picking Methodology of Axis Max Life Smart Innovation Fund
In order for better understanding how the Axis Max Life Smart Innovation Fund will attempt to achieve its long-term capital appreciation goals, a clear understanding of the stock picking methodology being implemented is essential. Let’s take a closer look at how the Axis Max Life fund manager and analysts will select suitable stocks for inclusion into the fund portfolio.
Step 1. The NSE Nifty 500 Index will serve as the stock universe for this fund. The innovation potential of stocks featured on this index will then be assessed by the in-house team based on 3 key criteria:
1) Commitment: This factor acts a reflection of how committed a company is towards implementing innovations. Companies that invest heavily in innovation are more likely to achieve breakthroughs that give them a competitive edge.
2) Influence: This criterion evaluates the influence that a company’s innovation has or is expected to have on its chosen sector as well as the broader market. Companies that achieve greater influence through innovation are more likely to emerge as market leaders in their chosen segment.
3) Originality: This criterion acts as a measure of how unique the innovation made by a company is. A higher level of originality and uniqueness when making innovations can help companies achieve a dominant position in their chosen sector/industry as well as the broader market.
Step 2. In the next step, traditional parameters of performance including financial health indicators of companies such as return on equity, leverage, etc. are overlaid on top of the innovation parameters of the earlier step. By combining key traditional parameters with innovation parameters, the fund management team can get a more holistic view of a company’s ability to maintain its competitive edge and deliver sustainable growth.
Step 3. Once companies that score high on both traditional fundamental metrics and innovation capabilities have been identified, these stocks are selected for inclusion into the fund portfolio. These are the stocks that are determined to have the highest potential to provide long-term capital appreciation due to their solid fundamentals as well as their ability to innovate. This approach is expected to provide a high degree of diversification across industries and market–caps while mitigating the potentially high short-term volatility risk associated with equity investments.
Who Should Consider Investing in this Fund?
The Axis Max Life Smart Innovation Fund offers investors a unique investment opportunity however, it is important to bear in mind that this fund primarily invests in equities. As a result, this fund is designated as a high risk investment and it might not be suitable for all investors. Below are some key reasons why Axis Max Life Smart Innovation Fund might be a suitable investment option:
If you fit into any of the above categories, the Axis Max Life Smart Innovation Fund can be a suitable investment option for you. Do note the above list is for illustrative purposes only and not exhaustive, hence, there might be other investor groups who may benefit from investing in this fund.
Other Actively Managed Equity Funds of Axis Max Life Insurance
Currently the in-house team at Axis Max Life Insurance operates 14 actively managed funds and a majority of these have outperformed their benchmark over various time periods. While historical performance of these schemes is no guarantee of future performance, the track record of these fund does provide investors with insight into how effective the fund management team at Axis Max Life is. This past experience of active fund management can play a crucial role in ensuring that the new fund is able to stay on track to achieve its long-term investment objectives. Here’s a closer look at 3 of the actively managed equity funds of Axis Max Life Insurance:
Max Life UL Life High Growth Fund
The Max Life UL Life High Growth Fund (SFIN: ULIF01311/02/08LIFEHIGHGR104) was launched in February 2008 and is an actively managed multi-cap equity fund that primarily focuses on investing in midcap stocks. This fund is one of the top performers in the category having received the highest rating of 5 Star from Morningstar in January 2025 and is benchmarked against the Nifty Midcap Free Float Index. Mandated to maintain a minimum 70% exposure to equities, this fund has outperformed its chosen benchmark over various time periods as shown below:
| Fund/Benchmark Index | 3 Year Returns | 5 Year Returns | Returns Since Inception |
|---|---|---|---|
| High Growth Fund | 23.22% | 27.12% | 15.04% |
| Nifty Midcap Free Float 100% | 21.04% | 24.04% | 10.11% |
Note: The returns shown above are CAGR returns as of 31 January 2025. The fund returns shown above are after deduction of fund management charges (FMC).
Max Life UL Life Diversified Equity Fund
The Max Life UL Life Diversified Equity Fund (SFIN: ULIF02201/01/20LIFEDIVEQF104) is an actively managed equity fund that invests across market capitalizations while focusing on large-cap and midcap stock irrespective of the sector they operate in. This fund was launched in June 2020 with the NSE Nifty 200 Index serving as its benchmark and in January 2025, it received the highest 5 Star rating from Morningstar. Since its launch, the fund has consistently outperformed its benchmark as shown below:
| Fund/Benchmark Index | 3 Year Returns | 4 Year Returns | Returns Since Inception |
|---|---|---|---|
| Diversified Equity Fund | 17.30% | 19.78% | 25.13% |
| Nifty 200 TRI | 12.47% | 16.55% | 21.56% |
Note: The returns shown above are CAGR returns as of 31 January 2025. The fund returns shown above are after deduction of fund management charges (FMC).
Max Life UL Life Growth Super Fund
The Max Life UL Life Growth Super Fund (SFIN: ULIF01108/02/07LIFEGRWSUP104) is rated 4 Star by Morningstar as of January, 2025, and was launched in May 2007. This is an actively managed equity fund that is mandated to maintain minimum 70% equity allocation and primarily focuses on making large-cap stock investments. Benchmarked against the NSE Nifty 100 Index, this fund has also outperformed its benchmark large-cap index over various time periods as shown below:
| Fund/Benchmark Index | 3 Year Returns | 5 Year Returns | Returns Since Inception |
|---|---|---|---|
| Growth Super Fund | 12.76% | 15.65% | 12.27% |
| NSE Nifty 100% | 10.67% | 14.45% | 10.12% |
Note: The returns shown above are CAGR returns as of 31 January 2025. The fund returns shown above are after deduction of fund management charges (FMC).
PDP/SIF/060325
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