Angel One Mutual Fund
Angel One Mutual Fund
Introduction
Angel One Mutual Fund operates under Angel One Asset Management Company Limited (Angel One AMC), which is a wholly-owned subsidiary of Angel One Limited, a well-known Indian stockbroking firm. Established in May 2023, Angel One AMC is a relatively new entrant in the Indian asset management space. The AMC's core aspiration is "to become investors' North Star by empowering a billion lives through passive investing." They believe that passive investing democratizes access to financial markets by simplifying the investment process and eliminating the complexities of individual stock selection or active fund manager choice.
Fund Manager
Angel One Asset Management Company has appointed experienced professionals to manage its funds, particularly focusing on its passive investment strategy. Key fund managers include:
- Mehul Dama: Chief Investment Officer (CIO) and Fund Manager. He has extensive experience (over 19 years) in ETFs and passive funds, having worked with top financial institutions like Nippon India AMC and Goldman Sachs AMC. He is currently managing the Angel One Nifty Total Market Index Fund and Angel One Nifty Total Market ETF.
- Kewal Shah: Fund Manager. He brings over 10 years of experience in fund management, particularly in passive investing strategies, with prior associations like ICICI Prudential AMC.
Scope and Investment Philosophy
Angel One Mutual Fund's scope and investment philosophy are distinctly centered around passive investing. Their key tenets include:
- Passive-Only Approach: They firmly believe in the power of passive investing, specifically through Index Funds and Exchange Traded Funds (ETFs). This approach aims to mirror the performance of underlying market indices rather than actively trying to beat the market.
- Democratization of Investing: Their goal is to simplify access to financial markets, making investing cost-effective, transparent, and accessible to a wide range of Indian investors.
- Belief in Market Supremacy: The AMC operates on the belief that the collective wisdom and information aggregated in market prices are supreme, and consistent outperformance by individual active management is challenging.
- Simplicity and Cost-Effectiveness: By tracking indices, they eliminate the need for complex stock selection and manager discretion, potentially leading to lower expense ratios for investors.
- Broad Market Exposure: Their passive products, like the Nifty Total Market Index Fund, aim to offer diversified exposure across various market capitalizations (large, mid, small, micro) within the chosen index, reducing concentration risk.
List of Funds with Brief Explanation
As a newly established AMC focusing on passive products, Angel One Mutual Fund has a limited, but growing, set of offerings. As of recent information, their primary and inaugural schemes include:
- Angel One Nifty Total Market Index Fund - Direct Growth
- Brief Explanation: This is an Index Fund (Equity - Other Passive). It is designed to replicate and track the performance of the Nifty Total Market Index, which comprises a broad universe of 750 stocks across large-cap, mid-cap, small-cap, and micro-cap segments. This fund offers investors diversified exposure to the overall Indian equity market in a cost-effective manner.
- Angel One Nifty Total Market ETF
- Brief Explanation: This is an Exchange Traded Fund (ETF) that also aims to track the Nifty Total Market Index. ETFs are passively managed funds that trade on stock exchanges like individual stocks, providing investors with broad market exposure and diversification.
Given their "passive-only" strategy and recent launch, their initial offerings are focused on broad market index tracking. More specific index or sector-based passive funds may be introduced as their product basket expands.
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