Axis Mutual Fund Boosts Overseas Exposure to 9%

Axis Mutual Fund has increased the overseas allocation in its Axis Large & Mid Cap Fund to 9%.

This decision is driven by the opportunities emerging from the artificial intelligence (AI) theme and relatively attractive global markets.

The fund house remains cautious about elevated valuations in certain international markets, particularly those linked to AI.

The move comes at a time when AI-led technology stocks continue to dominate investor interest globally, while domestic equities have seen valuation concerns in several pockets despite a recent market correction.

The fund's overseas investments are made based on advice from Schroders Investment Management and follow a high-conviction alpha strategy.

The global allocation complements the fund's domestic portfolio, which also follows a quality-focused, bottom-up investment approach aimed at generating sustainable long-term returns.

Alongside the increase in overseas exposure, Axis has reshaped its domestic portfolio following recent market volatility.

The fund has raised exposure to sectors such as electrical equipment, auto components, and industrial products, citing themes including electric vehicle adoption, power infrastructure spending, and supply-chain diversification.

The portfolio has also become more concentrated, with the number of holdings falling from 96 to 86.

Despite adding to overseas equities and increasing exposure to select mid- and small-cap opportunities, the fund continues to maintain a large-cap bias because of valuation comfort.