Axis Asset Management Company Limited
Axis Mutual Fund is one of the most trusted and popular asset management companies in India. It is a subsidiary of Axis Bank, which was founded in the year 2009 and is one of the fastest growing AMCs in India. As of the year 2019, Axis Mutual Funds has a presence in over 90 cities, a product suite of over 50 plans, and has an investor base of more than 20 lakh investors.
25% of the total issued and paid up equity share capital is held by Schroder Singapore Holdings Private Limited (SSHPL) and also one share in Axis Mutual Fund Trustee Limited and Axis AMC.
The three pillars of Axis Mutual Fund success are Long term relationship with the investors, generation of wealth, and extraordinary in customers view.
- Presence in more than 90 cities.
- Globally, it has a customer base of over 7 lakh.
- Managed by highly experienced professionals and the investments are made by a number of clients.
- The huge amount of this money is invested in shares, securities, and debentures.
- The return on these investments is shared among the investors on the basis of the shares held by them.
Different Kinds of Funds Offered
The Axis Bank’s Mutual Funds are classified into two categories:
1. On the basis of Structure
- Open-ended Mutual Funds: These funds are not traded in the open market, hence they do not have a fixed maturity and that is the reason they are re-priced each day depending on the number of shares sold or purchased.
- Closed-ended Mutual Funds: These funds have a lock-in period for the capital invested by the customer and hence have a fixed maturity. Also, these funds give an option to the investor to repurchase them several times.
2. On the basis of Investment Goals
- Equity Schemes: In equity schemes, the investments are done in shares, in which the capital is eligible to be invested in high-growth stocks or value stocks of publicly listed companies. Also, equities are known to be one of the most rewarding asset class (when held for a longer period of time) among the various investment options and offer a lot of conveniences as they are managed by highly experienced fund managers. AMF schemes provide a number of equity schemes:
- Equity Diversified Schemes: These schemes are not stuck to any specific sector or theme and come with advantages of building wealth for long term and tax.
- Mid Cap Schemes: Under these schemes, the capital is invested in several stocks offered by different domains or sectors, primarily in listed Bombay Stock Exchange mid-cap stocks. Also, such companies are expected to become large size companies in the future and so are expected to yield good returns.
- Equity Liked Security Schemes: Three years is the maximum freezing period for the open-ended ELSS.
- Thematic Schemes: Under this scheme, the capital is invested into a number of sectors but in determined domains such as services, exports and many more.
- Sector-specific Schemes: Under this scheme, the capital is invested in specific sectors such as manufacturing, information technology, etc. However, there is high risk involved in these schemes, as the return is directly dependent on that specific sector’s performance.
- Flexi-cap Schemes: These schemes are fluid type, as the investment under this scheme is in market caps.
Benefits of Equity Funds are as follows:
- Equity funds help in minimizing the risk of loss by distributing the investments in different sectors, which in turn minimizes the risk in the overall portfolio of an investor.
- Investing in schemes like ELSS helps in tax exemption of up to Rs.1.5 lakhs on the taxable income under section 80C.
- You can invest in equity funds based on your convenience through SIPs or lump sum investment; also one can easily liquidate the investments.
- By investing in equity funds, an investor can also earn some extra income in the form of dividends.
- Anyone can invest in equity funds with an initial investment of Rs.1000 through SIP mode.
- Equity Funds have the potential to generate superior returns and beat inflation over a long span of time.
Various Equity Schemes offered by Axis Mutual Fund are:
- Axis Long Term Equity Fund
- Axis Focused 25 Fund
- Axis Bluechip Fund
- Axis Mid Cap Fund
- Axis Multi-cap Fund
- Axis Growth Opportunities Fund
- Axis Small Cap Fund
- Income or Debt Schemes: In these schemes, the capital is primarily invested in government securities and corporate bonds. Also, the profit in these schemes is earned through the trading of the securities or by the interest on these investments.
Benefits of Debt Funds are as follows:
- They help you achieve your short term goals such as your children’s school fees, buying a gift for someone special or even a contingency fund. There a number of debt funds ranging from 3 months to 3 years to achieve your short term goal.
- They offer a large amount of liquidity, without bothering about the penalty on the withdrawals.
- If you invest in Debt funds for a period more than 3 years than you will have to pay a tax of 20% on your profits even if you fall in a higher bracket.
- By investing your money in Debt Funds, not only you preserve your capital but also guarantee a regular income.
- Investing your money in Debt Funds helps in more stable returns along with reducing the overall risks in the portfolio.
- Debt funds perform much better than the traditional saving schemes, also, one can enjoy tax benefits if he invests for a period of more than 3 years.
Some of the Debt Funds offered by Axis Mutual Fund are:
- Axis Banking and PSU Debt Fund
- Axis Liquid Fund
- Axis Gilt Fund
- Axis Corporate Debt Fund
- Axis Dynamic Bond Fund
- Axis Strategic Bond Fund
- Axis Credit Risk Fund
- Axis Overnight Fund
- Axis Short Term Fund
- Axis Ultra Short Term Fund
- Axis Treasury Advantage Fund
- Special Situation Funds: Under this scheme, the money is invested in order to achieve long term future goals and hence direct investments are done towards these goals. Such funds are an amalgamation of debt and equity instruments, which offer both stability and wealth creation.
Benefits of Special Situation Funds are as follows:
- Helps in achieving future goals
- By investing in special situation funds, one needs to invest less over a long period of time and achieve much more than expected.
- Such funds help in the creation of wealth for the investors.
- Diversification of investment helps in the creation of wealth as well as stability is ensured with fixed income instruments.
- If you invest in Special Situation funds for a period of more than 1 years than you will have to pay a tax of 10%.
A special situation fund offered by the Axis Mutual fund is:
- Axis Children Gift Fund – Compulsory Lock-In (It is an open-ended fund, which is an investment for children, with a lock-in period of 5 years or till the child becomes an adult (whichever is earlier).
- Hybrid Schemes: Under this scheme, the capital is invested in a mixture of asset classes and there are two types of hybrid schemes offered by the Axis Mutual Funds. The type of hybrid fund you choose solely depends on the objective of your investment and risk preferences.
- Balanced Schemes: Under this scheme, a perfect balance is maintained by investing in debt and equity instruments, where the equity vehicles focus on the capital gains and the debt vehicle makes sure that the investor gets an interest regularly.
- Monthly Income Plans: This scheme is perfect for the traditional investors, as these investors are not interested in taking much risk and under these schemes, there is very low risk involved. A very little amount is invested in the equity vehicles and a major portion is invested in the debt vehicles.
Benefits of Hybrid Funds are as follows:
- Diversification: An investor need not worry about balancing his portfolio investment, as these funds are already diversified.
- Wealth Creation Potential
- Long Term Goal Planning: These are the best funds to invest for child’s higher education or for your retirement plans.
- Limit Downside market scenario and gives stability.
Various Hybrid Funds offered by Axis Mutual Fund are:
- Axis Dynamic Equity Fund
- Axis Arbitrage Fund
- Axis Equity Hybrid Fund
Axis Bank Equity Funds are a smart way to grow your money at a fast speed, as its schemes mainly focus on multiplying the gains and neutralizing the involved risks. As of 31st March 2019, the various benefits of selecting AMFs are:
- It’s managed by a strong and experienced advisory team.
- All the products are SEBI regulated.
- One of the fastest growing AMCs.
- Choosing a Devoted Relationship Manager.
- Online Snapshot of the Portfolio.
- More than 25 lakhs active investors accounts.
- A suite of more than 50 schemes to choose from.
- Tax Benefits under Section 80C.