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Axis AMC to launch maiden healthcare ETF on Friday, aims to mop up Rs 200 cr

·1-min read

Mumbai, Apr 29 (PTI) Mutual fund house Axis AMC is launching the industry's first healthcare fund based on the 20-stock Nifty Healthcare index on Friday and expects to garner around Rs 200 crore from the exchange traded fund (ETF) offer.

While there are many funds based on the pharma index, this is the first ETF based on the entire healthcare value chain covering hospitals, diagnostics firms, pharmaceutical manufacturers and R&D players, involving the 20-stock Nifty Healthcare index, Axis AMC chief executive and managing director Chandresh Kumar Nigam told PTI on Thursday.

Nigam said though the fund house has not formally set a collection target given the worsening pandemic situation, they expect to easily garner around Rs 200 crore from the new ETF offer that opens on Friday. Moreover, there is no point in setting targets for a passive fund, he added.

Axis' presence in the ETF category is very small with asset under management (AUM) of only Rs 522.34 crore as of end-March, while its overall AUM was Rs 1,91,919.7 crore. Nigam is hopeful of reaping the early bird benefit from the new fund offer (NFO) as he expects the healthcare sector to grow much bigger over the next few years, given the stress that the governments are giving to public health.

The Axis healthcare ETF offers investors an opportunity to invest in the biggest healthcare companies in the country at their own pace as it gives exposure to them all in a neatly packed bite-sized exchange traded fund (ETF).

The Nifty Healthcare index has been a long-term wealth creator. It comprises the 20 largest healthcare-oriented companies by free-float market capitalisation. PTI BEN ABM ABM