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Make money

responsibly^.
Presenting

AXIS ESG EQUITY FUND


(An open-ended equity scheme investing in companies demonstrating sustainable
practices across Environment, Social and Governance (ESG) theme)

^Make money does not signify any assurance of return / capital appreciation on investment.

NFO Period: 22nd Jan, 2020 to 5th Feb, 2020

The 3 pillars of ESG

• Climate Change • Human Capital • Transparency


• Natural Resource Use • Product Safety • Business Ethics
• Waste Management • Social Opportunities • Government & Public Policy

Environmental Social Governance


Source: MSCI, Institute and Faculty of Actuaries

Does ESG add value?

Nifty 100 ESG Index Nifty 50 Index


Returns
14.5% 12.9%
(2011 – 2019)
The NIFTY100 ESG Index has outperformed the NIFTY50 Index in the last 8 years*.
Data Source: Bloomberg, NSE, Axis AMC analysis. *8 year period is from 31st December, 2011 to 31st December, 2019 (CY).
Past performance may or may not be sustained in future. Returns provided are CAGR for the period 31st Dec 2011 to 31st Dec 2019.

Why should you invest?


Sustainable stocks deliver sustainable growth

Aim for long term capital Sustainable companies Axis is well positioned to
appreciation by investing are expected to have incorporate ESG while
in quality companies lower risk and deliver investing basis our core
with sustainable growth sustainable growth focus towards quality and
prospects sustainable growth
Weak ESG = Business Risks Strong ESG = Sustained Growth

Environmental Risks Maintain structural growth

Sustainable companies
Run for the long term
Firm generating high levels of pollution may suffer from a future tax
• Deliver compounding returns
Social Risks
• Have a lower cost of capital
Firm that poorly treats its employees or suppliers may be boycotted
by consumers • Command premium valuation
Governance Risks Take into account impact • Have lower volatility and
Firm with poor governance may be heavily fined by the regulator on all stakeholders reduced drawdown risk
Source: Axis AMC analysis, Institute and Faculty of Actuaries

How do we select companies for ESG fund?

Sector-Level screening: Stock-Level screening:


• Exclude sectors/themes that are deemed • No investments in stocks which throw
harmful from a societal perspective. Eg.: up ESG red flags as a part of our review
Exclude Tobacco, Liquor, Gambling stocks

Portfolio Construction:
• Allocation based on a detailed
qualitative ESG review of each company,
complementing the existing
fundamentals based investment process

Please refer SID for detailed investment strategy.

Portfolio to reflect both growth and sustainability

Min 80% of the portfolio will be


in stocks that rate highly on
internal ESG review

Top Allocation Moderate Allocation Selective Allocation


(Improving ESG Trend)

Growth/cash-flow projections
ESG/sustainability review

Please refer SID for detailed asset allocation and investment strategy. The table indicates the investment philosophy proposed to be followed by the Fund Manager.

Riskometer
Axis ESG Equity Fund
(An open-ended equity scheme investing in companies demonstrating sustainable practices ely
Moderate M
od
at e
across Environment, Social and Governance (ESG) theme) er Hi rate
od o w gh ly
M L
This product is suitable for investors who are seeking*:
• Capital appreciation over long term
High

• Investments in companies demonstrating sustainable practices across


Low

Environment, Social and Governance (ESG) parameters.


*Investors should consult their financial advisers if in doubt about whether LOW HIGH
the product is suitable for them. Investors understand that their principal will be at high risk

Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to
Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC).
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

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