Mutual Fund News : Axis Mutual Fund Introduces Axis Long Duration Fund

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Axis Mutual Fund has launched – Axis Long Duration Fund

It is an open-ended debt scheme investing in instruments such that the Macaulay duration of the portfolio is greater than 7 years. Relatively High interest rate risk and Relatively Low Credit Risk.

Accordingly, the investment objective is to generate optimal returns consistent with moderate levels of risk. This income may be complemented by capital appreciation of the portfolio. Accordingly, investments shall predominantly be made in Debt & Money Market Instruments. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.

Under normal circumstances, Axis Long Duration Fund will hold an allocation of 0% to 100% of its assets in Debt Instruments & Money Market Instruments.

As per the Scheme Information Document, Axis Long Duration Fund aims to maximize risk adjusted returns to the investor through an active management of the portfolio, by elongating the duration of the portfolio in a falling interest rate scenario and reducing the duration at a time when interest rates are moving up. With the discretion to take aggressive interest rate/duration risk calls, this could mean investing the entire net assets in long dated Government securities and debt instruments (carrying relatively higher interest rate risk/duration risk), or on defensive considerations, entirely in money market instruments.

Accordingly, the interest rate risk/duration risk of the scheme may change substantially depending upon the Fund’s call. The fund manager will carry out rigorous in depth credit evaluation of the money market and debt instruments proposed to be invested in. The credit evaluation will essentially be a bottom up approach and include a study of the operating environment of the issuer, the past track record as well as the future prospects of the issuer and the short term / long term financial health of the issuer.

Axis Long Duration Fund’s performance will be benchmarked against NIFTY Long Duration Debt Index A - III

The scheme will be managed by Mr Devang Shah, Mr Kaustubh Sule and Mr Hardik Shah.

The NFO opens for subscription on December 07, 2022 and closes on December 21, 2022. The schemes will reopen for continuous sale and repurchase within five Business Days from the date of allotment.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000/- and in multiples of any amount thereafter.

The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.