Axis Mutual Fund on Wednesday launched a manufacturing fund and has set a target of collecting at least ₹2,500 crore during the offer period. The Axis Bank subsidiary which competes with 44 other players, is also eyeing around ₹3 lakh AUM by the end of this fiscal, given the market rally.

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The fund house opened the year with an AUM (assets under management) of over ₹2.25 lakh crore. The open-ended equity scheme represents the manufacturing theme and opens for subscription on December 1 and closes on December 15.

The fund will track the Nifty manufacturing index and will be managed by Shreyash Devalkar and Nitin Arora, the company announced in Mumbai.

If 10% of the investment is redeemed/switched within 12 months from the date of allotment there will be no exit load, while for the remaining investments, there will be a 1% charge, B Gop Kumar, managing director & chief executive of the fund house said.

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On the overall AUM target for the year, Kumar said the growth has been very good for the company and hopes to close the year with ₹2.8-3 lakh crore in AUM driven by SIPs and fixed-income funds.

On the new fund offer, Raghav Iyengar said they have set an internal target of collecting at least ₹2,500 crore during the offer period. Kumar said the fund will endeavour to harness the potential of the country's growing manufacturing theme, which of late has been gaining increased traction.

The fund managers see increased scope for exports to the US and Europe when it comes to capital goods and power section equipment. The country is transitioning rapidly, thanks to significant government impetus, favourable policy frameworks, and improving cost competitiveness, said Ashish Gupta, a chief investment officer.