Fund of Fortnight

Every fortnight, we recommend one open-ended equity diversified fund that has the best potential of returns for the next one year considering its constituents remain the same.[EasyDNNnews:PaidContentStart]

Reason for recommendation
Indian investors often focus on domestic markets and it has worked till now. However, in an increasingly uncorrelated world, global diversification is key to long-term wealth creation. Axis Global Equity Alpha FoF (Direct) offers investors a route to participate in global opportunities by investing in the Schroder International Selection Fund Global Equity Alpha, a proven international Equity Fund with a consistent track record of performance. Investing beyond India’s borders allows investors to capture growth from companies driving global innovation. The fund provides exposure to large, well-established names such as Microsoft, Alphabet, Meta Platforms, Visa, and Netflix, which dominate the technology and consumer ecosystems worldwide.

Such holdings not only diversify sectoral risk but also ensure participation in global megatrends like digital transformation, AI, and cloud computing — themes that are shaping the future of business. With 53 holdings across 25+ countries, the underlying fund demonstrates true diversification — both by geography and sector. The United States accounts for around 77 per cent of the portfolio, complemented by meaningful exposure to Europe, Japan, and emerging markets. Sectorally, it is balanced between information technology (24.9 per cent), financials (17.4 per cent), healthcare (13.4 per cent), and consumer discretionary (10.3 per cent), ensuring resilience through market cycles. Over the past five years, the fund has delivered a 75.5 per cent cumulative return, reflecting disciplined fund management under Frank Thormann. With an annualised 3-year return of 17.86 per cent, it has demonstrated its ability to outperform during both up and down markets. Axis Global Equity Alpha FoF is an ideal choice for investors looking to broaden their horizons beyond India. It combines global exposure, sectoral balance, and long-term growth potential — providing a well-rounded international diversification tool within one fund. The fund is ideal for risk-taking investors with an investment horizon of more than three years. Investors should not put more than five per cent of their portfolio in international funds.

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