Axis Mutual Fund has launched a new fund offer, Axis Equity Hybrid Fund, which opens for subscription today. It is an equity-oriented balanced fund and will close on 3rd August 2018. The fund will invest 65-80% of its assets in equity and 20-35% in debt. As a result, the fund will be classed as an equity fund for tax purposes.
The scheme will be benchmarked to the Crisil Balanced Fund Index which is an index composed of several major balanced mutual funds. In March 2018, the index had one-year returns of 8.94%, three-year returns of 9.03% and five-year returns of 16.05%. Axis Equity Savings Fund which uses equity, debt and arbitrage is comparable to some extent. This fund was launched in August 2015 and has delivered 7.75% since then. However, note that interest rates have risen sharply over the past year hurting debt and hybrid funds across the board.
As a fund house, Axis Mutual Fund has delivered some spectacular returns on the equity side with Axis Bluechip Fund (up 21.5% over the past year). Shreyas Devalkar who manages Axis Bluechip will be a co-fund manager at Axis Equity Hybrid. R Sivakumar and Ashish Naik will be the other co-fund managers. R Sivakumar is the head of fixed income at Axis Mutual Fund.
NFO Period: 20th July to 3rd August
Fund Manager: Shreyas Devalkar
Benchmark: Crisil Balanced Fund Index
Minimum Application Amount: Rs 5,000
Options: Growth, Dividend Payout and Dividend Reinvestment