Axis RERA Opportunities Fund 2 AIF
Our view on the fund, the AMC, the strategy, the performance & the investment team.
IME's Review of Axis RERA Opportunities Fund 2 AIF
| Fund Rating | Strategy Rating | Performance Rating |
|---|---|---|
Upgrade | Upgrade | Upgrade |
View on the Fund
This is a decent fund for investors who are comfortable with real-estate lending and seeking professional mgmt & higher yields. However, we point out the higher risks of such a strategy, and would accordingly recommend this primarily to investors seeking higher-yield debt options and who are comfortable taking on a higher level of risk.
Strategy
Gap in Funding Environment provides opportunity but with risk
Fund's Strategy View
Banks and NBFCs have reduced exposure to real estate during a strong regulatory intervention period through RERA, GST and IL&FS causing a lack of funding sources for smaller credible regional players. Lack of competition presents better pricing opportunities for AIFs such as Axis RERA fund. Willingness to fund from the early to late stage of the funding cycle provides for higher returns, however, this comes with higher risk through project execution or delays, defaults and any other unforeseen external factors. There is a reasonably high chance of some credit events (delays or outright defaults) given the lending segment, that could impact IRRs for investors
Fund Performance
Most high-yield debt funds are close-ended. Funds that are open for subscription are new funds without a past performance track record - investors need to be careful about considering performance of previous fund series to new funds (since the underlying investment environment may have changed considerably).
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Axis RERA Opportunities Fund 2 AIF |
Performance as of: 31-Jan-26
Investment team
Hitesh Zaveri | 3-star rated FM
Head - Listed Equity Alternatives | 26 yrs Experience | 4 yrs at current firm
Past Experience: Plutus Capital, OSF Capital, Birla AMC, Enam AMC
Hitesh Zaveri joined Axis AMC in 2022 as SVP & Head – Listed Equity Alternatives. He is responsible for managing the Axis PMS portfolios along with relevant CAT-3 AIF strategies. Hitesh has over 25 years of experience in portfolio management, investment banking and equity research. Prior to joining Axis AMC, he served as Head of Investments in the PMS business at Aditya Birla Mutual Fund. He has pursued his MBA from Mumbai University, and has also completed a few programs from the Harvard Business School and from The Wharton School.
IME's Review of Axis AMC PMS
| AMC Rating | Pedigree Rating | Team Rating | Philosophy Rating |
|---|---|---|---|
Upgrade | Upgrade | Upgrade | Upgrade |
View on AMC
Axis AMC PMS faces common issues found in large MF-driven PMS firms, such as PMS being treated as an add-on instead of a separate business unit, high turnover in the investment team, lack of commitment from the CIO, and vague investment philosophies. While the AMC's distribution abilities can aid in scaling the PMS and provide research access, it is often not as strong as founder-driven PMS firms with a dedicated CIO.
AMC's Pedigree
Axis AMC is a top 10 asset manager in India known for managing mutual fund assets. While being part of a larger asset management house has benefits like a central research team and distribution strengths, the pedigree of an AMC-driven PMS may not compare to investor-cum-promoter driven PMS's with stable investment teams and defined investment processes.
AMC Team
AMC's top leadership has changed from Trideep Bhattacharya to Hitesh Zaveri, both experienced investment professionals in the alternate space. This turnover in leadership is a common issue with AMC-driven PMSs lacking substantial equity ownership by the core FM.
Investment Philosophy
Investment philosophy is not clearly defined at the PMS level; strategy is driven at the portfolio level instead.
PMS Background
Axis AMC PMS is part of Axis Asset Management, one of the larger mutual fund houses in India. The PMS platform benefits from the AMC’s strong research infrastructure, broker and corporate access, and extensive distribution capabilities. While this provides scale and process strength, the pedigree of the PMS is largely derived from the AMC’s mutual fund experience rather than from an investor–promoter–led heritage, which distinguishes it from more founder-driven PMS platforms.
PMS Investment Philosophy
Axis PMS strategies are centred around investing in strong consumer and business brands. Flagship strategies such as the Axis Brand Equity Portfolio and Axis Core and Satellite Portfolio are built on the belief that brands create durable competitive advantages through pricing power, customer stickiness, and bargaining leverage. The investment approach focuses on companies with strong intellectual property, marketing capabilities, and innovation, which together help reinforce brand strength and long-term resilience.
Strong brands are viewed as lower-risk franchises due to their ability to benefit from economies of scale, high barriers to entry, and presence in under-penetrated markets. These characteristics are expected to drive superior growth and more consistent returns across business cycles. As a result, the strategy adopts a thematic tilt towards brand-led businesses where competitive moats are structurally embedded.
Suitable For
Investors seeking the comfort of investing with a large, established asset management brand, while aiming for higher risk–return potential than traditional mutual fund strategies.
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