An open-ended equity oriented asset allocation scheme.
Summary
| Type |
An open ended equity scheme |
Benchmark Index |
Crisil MIP Blended Fund Index |
Min. investment:
Additional purchase: |
Rs.5,000/- & in multiples of Re 1 thereafter
Rs 100 and in multiples of Re 1 thereafter |
Plans:
Options under each plan: |
- Direct Plan:
- Regular Plan:
- Growth
- Dividend
- Dividend Pay-out and Dividend Reinvestment option (Monthly and Quarterly Dividend frequency)
|
| Face Value |
Rs 10 per unit |
Expense Ratio: |
Up to 2.50% |
| Entry Load |
Nil |
Exit Load: |
1% if redeemed / switched - out within 12 months from the date of allotment |
| Issue Opens |
July 27, 2015 |
Issue Closes: |
August 10, 2015 |
Investment Objective*
The investment objective of the scheme is "to provide capital appreciation and income distribution to the investors by using equity and equity related instruments, arbitrage opportunities, and investments in debt and money market instruments."
*Source: Scheme Information Document
Is this fund for you?
Axis Equity Saver Fund (AESF) has a dual objective of providing capital appreciation and income distribution to the investors by using equity and equity related instruments, arbitrage opportunities, and investments in debt and money market instruments.
The scheme seeks to benefit from the concept of asset allocation. The aim of asset allocation is to provide superior risk-adjusted returns through diversification across various asset classes like equity, fixed income & arbitrage which have historically had low correlation with each other.
The asset allocation under normal circumstances:
| Instruments |
Allocation Range (%) |
Risk Profile
High/Medium/Low |
| Minimum |
Maximum |
| Equity and Equity related securities# Of which: |
65% |
80% |
High |
| i) Equities & equity related instruments (unhedged)* |
20% |
45% |
High |
| ii) Equities, equity related instruments and derivatives including index futures, stock futures, index options, & stock options, etc. as part of hedged / arbitrage exposure* |
20% |
60% |
Medium to High |
| Debt & Money Market Instruments#$ |
20% |
35% |
Low to Medium |
*Equity allocation is measured as the Gross exposure to equities, equity related instruments and derivatives.
#The Scheme may also use derivatives for such purposes as maybe permitted by the Regulations, including for the purpose of hedging and portfolio balancing, based on the opportunities available and subject to guidelines issued by SEBI from time to time.
$Investment in Securitized debt, if undertaken, would not exceed 20% of the net assets of the Scheme.
*Source: Scheme Information Document
If the debt / money market instruments offer better returns than the arbitrage opportunities available in cash and derivatives segments of equity markets then the investment manager may choose to have a lower equity exposure. In such defensive circumstances the asset allocation will be as per the below table:
| Instruments |
Allocation Range (%) |
Risk Profile
High/Medium/Low |
| Minimum |
Maximum |
| Equity and Equity related securities# Of which: |
20% |
70% |
High |
| i) Equities & equity related instruments (unhedged)* |
20% |
45% |
High |
| ii) Equities, equity related instruments and derivatives including index futures, stock futures, index options, & stock options, etc. as part of hedged / arbitrage exposure* |
0% |
25% |
Medium to High |
| Debt & Money Market Instruments#$ |
30% |
80% |
Low to Medium |
*Equity allocation is measured as the Gross exposure to equities, equity related instruments and derivatives.
#The Scheme may also use derivatives for such purposes as maybe permitted by the Regulations, including for the purpose of hedging and portfolio balancing, based on the opportunities available and subject to guidelines issued by SEBI from time to time.
$Investment in Securitized debt, if undertaken, would not exceed 20% of the net assets of the Scheme.
*Source: Scheme Information Document
Fund Manager Profile
Mr R. Sivakumar is Head of Fixed Income & Products, Axis Asset Management Co. Ltd. He is a Bachelor of Technology graduate from IIT, Madras andhas done Post Graduate Diploma in Management from IIM, Ahmedabad. Prior to joining Axis Asset Management Co. Ltd., Mr Sivakumar was associated with Fortis Investment Management (India) Pvt. Ltd. - previously known as ABN AMRO Asset Management (India) as a Chief Operating Officer, Sundaram Asset Management Company Ltd. as a fund manager, Zurich asset Management (India) Pvt. Ltd. as a Research Analyst.
Mr Jinesh Gopani is a fund manager - Equity at Axis Asset Management Co. Ltd. He is a B.Com graduate and has done Master of Management Studies (MMS) from Bharati Vidyapeeth Institute of Management Studies and Research. He has a total work experience of about 12 years. Prior to joining Axis Asset Management Co. Ltd., Mr Gopani was associated with Birla Sun Life Asset Management Company Ltd. as a portfolio manager, Voyager India Capital Pvt. Ltd. as a Research Analyst, Emkay Shares & Stock Brokers Ltd. as a Research Analyst and Net worth Stock Broking Ltd. as a Research Analyst.
Fund Outlook
Considering the fund’s investment objective, indicative asset allocation and suggestive portfolio strategies, it is likely that, the fund will invest predominantly in equity and partially in debt and money market instruments. Given the current investment climate, the outlook of the fund will depend on the fund manager’s ability to efficiently allocate capital to asset classes depending on opportunities prevalent in the market. As equity markets around the globe and particularly in Asia are going through a consolidation phase right now the fund is likely to position its portfolio towards Arbitrage opportunities or debt and money market instruments initially. However as valuations start to look more appealing from their current levels the fund may shift the portfolio balance towards equities.
Since the fund is mandated to invest across asset classes the return potential of the fund may also be on the lower side as compared to that of a pure equity fund while the losses would be lesser as well compared to a pure equity scheme. This would insure lower risk while also generating lower returns. The goal of the fund would therefore be to generate higher returns on a risk adjusted basis as is mentioned in its scheme information document. Success of AESF is contingent primarily upon market volatility and investment and arbitrage opportunities prevailing in the markets.
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