In the current economic cycle where the buzzword is uncertainly, one of the surest ways of ensuring that your investment doesn’t fall prey to specific market factors is to diversify as much as possible. Not just equity and debt, but look further into both of these categories to find value additions that can help shore up your portfolio and deliver gains on your investment.

Diversification also helps in making you more aware about different fund categories and the risks and rewards they carry, helping you to navigate between the ever-expanding choice you have as an investor to make the most of your portfolio.

Looking at the example of mutual funds, you might be tempted to only invest between equity funds and debt funds or sector-specific funds, depending on your investment strategy. There’s a new fund from Axis Mutual Fund that seeks to provide the ultimate diversification for individuals who are looking at new avenues to grow their investment.

Called Axis NASDAQ 100 Fund Of Fund, the fund’s focus is on replicating the performance of the NASDAQ 100 TRI by investing in ETFs whose primary objective would be to track/replicate the performance of the NASDAQ 100. The minimum application amount would be ₹500 per application and in multiples of ₹1 thereafter. The fund manager is Hitesh Das who has over 11 years of experience.

Here are five reasons why one must consider investing in this fund.

1 – Direct access to global leaders

The current NASDAQ 100 Index is a tech-heavy index and has exposure to new economy sectors such as healthcare, technology and consumer. It is predominantly led by some of the most innovative and rapidly expanding non-financial companies across the world. These companies have a large global footprint and generate the bulk of their revenue from different countries.

2 – Hedge against INR depreciation

Another way of looking at this fund is to look at it as a hedge against the sliding rupee. With the Indian rupee breaching the INR 83 mark against the dollar already, there’s no saying how much further pain lies for the domestic currency. Thus, apart from giving the benefit of global exposure and potentially reducing concentrated geographical risk for investors, NASDAQ-100 can also work as a hedge against INR depreciation.

3 – Ultimate diversification fund

We’ve already explained the importance of diversification in today’s complicated economic market. The Axis NASDAQ 100 Fund Of Fund not only invests across different companies in different sectors, these companies are also present in different countries and generate revenue from other countries as well. In a nutshell, investing in this fund is akin to investing in stocks from across the globe in such a way that you get the best of them as the NASDAQ 100, which this fund tracks, delivers winners across different sectors to give you the best returns.

4 – Easy way to hold global companies

With seamless access to the fund via Axis Mutual Fund, investors don’t need to worry about compliance and tax headaches etc. since the fund house itself will take care of all the nitty-gritty involved in holding and investing in global funds. Indeed, if you’ve been looking to invest in foreign markets, things couldn’t be easier than investing in Axis NASDAQ 100 Fund Of Fund.

5 – Understanding and investing in global markets

For those of you who have been on the fence about investing in global markets, Axis NASDAQ 100 Fund Of Fund offers the best gateway to do just that. You can start with a small amount and see how the fund performs before adding in more money. This could be a period of learning and understanding how global funds work for you as an investor. Who knows you might get a taste of it and make more profit than those who miss out on investing in the fund?

Axis NASDAQ 100 Fund Of Fund NFO closes for subscription today, ie October 21. Even if you miss out on the NFO, we would highly recommend you subscribe to the scheme when it reopens for subscription if you’re looking to diversify your portfolio.

You can find more details and subscribe to the fund here.

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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