Axis Mutual Fund has launched a new mutual fund scheme on 20th July 2018 – Axis Equity Hybrid Fund.

It is an open-ended scheme that invests across equity and debt markets to generate stable returns for investors in the medium term.

The product is suitable for investors who are seeking capital appreciation along with the generation of income over medium to long-term by investing in equity and equity related instruments as well as debt and money market instruments.

Lets look into this NFO in detail.

Axis Equity Hybrid Fund NFO- Facts

Axis mutual fund is a premier mutual fund in India and caters to the investment needs through a suite of mutual fund schemes.

It recently announced the launch of Axis Equity Hybrid Fund – Direct Plan NFO.

NFO Name Axis Equity Hybrid Fund – Direct Plan NFO
NFO Launch Date 19th July 2018
Last Date for Application 3rd August 2018
Minimum Investment Amount ₹5,000 and in multiples of ₹ 1 thereafter
Fund Type Hybrid Scheme
Nature Open-ended fund
Load Structure Entry Load: Nil
Exit Load: Nil if 10% of investments are redeemed or switched out within 12 months from the date of allotment
and 1% if remaining investments are redeemed or switched out after 12 months from the date of allotment.
Fund Manager Mr. Shreyash Devalkar & Mr. Ashish Naik (Equity), Mr. R.Sivakumar (Debt)
Benchmark CRISIL Hybrid 35+65 Aggressive Index

How Can You Invest in Axis Equity Hybrid Fund NFO 2018?

Log in to your Groww account.

If you are a new user, sign up first– it is online and takes 2-3 working days.

If you want to invest in Axis Equity Hybrid Fund – Direct Plan NFO, you have to follow the steps below:

1.Decide the amount you would like to invest in Axis Equity Hybrid Fund – Direct Plan NFO.

2.You can also email Groww support on support@groww.in with a request.

When investing in this NFO, you must remember that there is no entry load, but the exit load is 1% if the units are redeemed/switched within 1 year from the date of allotment.

Axis Equity Hybrid Fund NFO – Objective

This fund seeks to generate long-term capital appreciation along with current income by investing in a mix of equity and equity related Instruments, debt Instruments and money market instruments.

But there is no assurance that the objective of this scheme will be realized and the scheme does not assure or guarantee any consistent return either.

Axis Equity Hybrid Fund NFO – Fund Category

Axis Equity Hybrid Fund – Direct Plan NFO is categorized as a hybrid fund scheme which invest in equity and equity-related securities along with debt and money market instruments.

Axis Equity Hybrid Fund NFO is also an open-ended fundOpen-ended funds are schemes that offer mutual fund units to the investors on a continuous basis.

This means that the investors can buy units from, or sell units to the fund house at any time. These funds also do not have a fixed maturity period.

The success of these funds depends on the amount of effort invested by the fund house in researching and finding the right dark horse stocks in the small-cap segment, stable stocks among the large-cap segment and the right mixture of equity and debt in the portfolio.

Axis Equity Hybrid Fund NFO – Plans Available

The scheme offers the following plans: Regular Plan and Direct Plan

Both the regular and direct versions of any mutual fund are the exact same fund and are run by the same fund managers, investing in the same stock and bonds.

The difference is that in the case of direct mutual funds, there is no broker/distributor commission.

Which means, as an investor, you get higher returns from the exact same mutual fund.

Read More: Regular Plan V/S Direct Plan (Does It Really Matter?)

Additional Options

  • Growth Option
  • Dividend Option (with Payout and Reinvestment Facility – Regular, Monthly and Quarterly frequency)

If no option is indicated in the application form, then the default option will be the Growth Option.

Axis Equity Hybrid Fund NFO – Asset Allocation

This fund will contain equity & equity related securities from 65 – 80% (high-risk instruments) and money market & debt instruments between 20 – 35% (low to medium risk instruments) depending on market scenarios and conditions.

The equity component will follow a multi-cap bottom up best ideas strategy.

The debt component will follow a tactical approach across sovereign bonds and corporate bonds.

Axis Equity Hybrid Fund NFO – Benchmark

The fund will be benchmarked to CRISIL Hybrid 35+65 Aggressive. This index is a combination of the S&P BSE 200 (35%) and Crisil Composite Bond Index (65%).

That implies that Axis Equity Hybrid Fund is going to invest around 65% of its portfolio in equity instruments and the rest 35% in debt related instruments.

The fund reserves the right to change the benchmark for evaluation of the performance of the scheme from time to time, subject to SEBI regulations and other prevailing guidelines if any.

Axis Equity Hybrid Fund NFO – Fund Manager

This fund will be managed by 3 experts:

Shreyash Devalkar (for Equity)

Experience: Mr. Shreyash Devalkar is a fund manager of equities at Axis Asset Management Company Limited since November 16, 2016. Previously, Mr. Devalkar was a Fund Manager of Equities at BNP Paribas Asset Management India Private Limited since October 3, 2011.

From April 2011 to October 2, 2011, Mr. Devalkar was an Equity Analyst at BNP Paribas. Mr. Devalkar also served as an Equity Analyst in the PMS division at BNP Paribas from January 2011 till March 31, 2011.

He has over 5 years experience in equity markets and he specialises in the information technology, telecommunication services, industrial, and utilities sectors.

Education: He earned an MMS in Finance from Jamnalal Bajaj Institute of Management Studies, Mumbai University. Mr. Devalkar also holds a Bachelor of Chemical Engineering degree from UDCT, Mumbai. After engineering, Mr. Devalkar served as an Executive Engineer at Larsen and Toubro Limited from August 1999 to July 2001.

Ashish Naik (for Equity)

Experience: Prior to joining Axis Mutual Fund he was associated with organisations such as Goldman Sachs and has over 7 years of experience as an Equity Analyst.

Education: Mr. Naik is a B.E from Mumbai University and MBA from XLRI, Jamshedpur.

Mr. R.Sivakumar (for Debt)

Experience: Mr. R. Sivakumar is the Head of Fixed Income and Products at Axis Asset Management Company Limited since September 2, 2010. Mr. Sivakumar was employed at BNP Paribas Asset Management India Private Limited.

He also served as Secretary and Compliance Officer at Asian Cerc Information Technology Ltd. Mr. Sivakumar managed fixed income funds at Sundaram and ABN Amro mutual funds.

He served as Compliance Officer and Company Secretary at Religare Technova Global Solutions Ltd until November 1, 2006. He has several years of experience in the Indian asset management industry across asset classes.

Education: Mr. Sivakumar earned a P.G.D.M. from Indian Institute of Management, Ahmedabad and a Bachelor of Technology from Indian Institute of Technology, Madras.

Axis Equity Hybrid Fund NFO – Minimum Investment

Minimum Application Amount: ₹5,000 and in multiples of ₹1/- thereafter
Minimum Additional Purchase Amount: ₹100 and in multiples of ₹1/- thereafter

Note: The minimum application amount is applicable only at the time of creation of new folio and at the time of first investment in a plan

Axis Equity Hybrid Fund NFO – Risk

Axis Equity Hybrid Fund NFO falls in the moderately high-risk category as per the company scheme information document. You can download this SID from Axis Mutual Fund’s website too. This indicates that the principal invested by the investors will be moderately high risk.

Some of the risks associated with the fund are trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal.

The fund is an equity oriented hybrid fund and therefore is less volatile when compared to pure equity funds and more volatile than the pure debt mutual fund category due to their exposure to high performing equities.

These funds have given high returns on investments as compared to debt funds.

It is best suited to investors with a moderate risk appetite or for long-term investors.

Axis Equity Hybrid Fund NFO – Important Features

Following are some of the salient feature of Axis Equity Hybrid Fund NFO:

  • Growth potential is better than fixed income investments.
  • Lower volatility as compared to pure equity funds.
  • Dynamic equity & debt allocation based on Multi Parameter Strategy.
  • The fund manager will use a multi-cap bottom-up strategy for picking stocks related to fast-growing sectors. It will be predominantly inclined to large-cap stocks with up to 30 percent investment in mid-cap stocks.
  • Based on “Downside protection” which aim to reduce the frequency and/or magnitude of capital losses, resulting from significant asset market declines. Aims to limit the impact of potential losses from market downturns.
  • Benefit from active management. Fund manager adds value through active management within the asset class.

Axis Equity Hybrid Fund NFO- AMC Details

Key Information

Mutual Fund Axis Mutual Fund
Setup Date 04th September 2009
Incorporation Date 13th January 2009
Sponsor Axis Bank Limited
Trustee Axis Mutual Fund Trustee Limited
Chair Person Mrs. Shikha Sharma
CEO / MD Mr. Chandresh Kumar Nigam
Assets Managed Rs. 77325.41 (31st March 2018)

Axis Bank is a first private sector bank in India, they began their services in 1994.

The Axis Bank was also promoted by the Unit Trust of India, General Insurance Corporation of India and Life Insurance Corporation of India and other insurance companies. Axis Mutual Fund began their first scheme in the month of October 2009.

Axis Bank is the third largest private sector bank in India. Axis Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses.

The Bank’s Registered Office is at Ahmedabad and its Central Office is located at Mumbai. The Bank has a large footprint of 2402 domestic branches (including extension counters) and 12,922 ATMs spread across the country as on 31st March 2014. This is one of the largest ATM networks in the country.

The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.

Key Reasons to Invest in Axis Equity Hybrid Fund NFO

Conservative investors who are trying to seek income from their investment and not take a great risk, should look at this NFO.

Hybrid funds are desirable funds for conservative investors seeking reasonable returns with great stability.

Advantages of Equity Saving Funds

  • Highly diversified when compared to other equity-oriented mutual funds.
  • Equity exposure helps to ride the growth wave and enhances the potential to earn higher returns.
  • Fixed income/debt provides stability to the portfolio by being less volatile and generating income regularly.
  • Tax benefits as applicable to equity funds.
  • They have given more return on investment than pure debt-oriented balanced funds.
  • Balanced funds provide the fund manager with the flexibility of changing the debt and equity proportion, depending upon the market situation.
  • It enables the fund manager to book profits when the market is rising and purchase stocks at a cheaper price when the market is falling.
  • The investor also does not need to re-balance his portfolio as it is done by the fund manager.

What are Your Other Options?

If you think Axis Equity Hybrid Fund – Direct Plan is too new and lacks a track record, you can invest in hybrid funds that have been in the market for some time. Top options in hybrid category are:

1. Reliance Equity Hybrid Fund – Direct

Launched on 1st January 2018, this is a fund with moderate risk and has given a return of 15.35% since its launch.

Returns from this fund over the years

Duration Returns (per annum)
1 year  4.6%
3 year  10.9%
5 years  18.6%

Key Features

  • This is a 5-star rated fund by Groww.
  • It has an AUM of ₹ 13,593 Cr approximately
  • It has not consistently outperformed its benchmark, CRISIL Balanced Fund Aggressive, since its launch. 1Y return are lower than benchmark.
  • Minimum SIP – ₹500.

2. HDFC Balanced Fund

Launched on 1st January 2013, this is a fund with moderate risk and has given a return of 17.06% since its launch.

Returns from this fund over the years

Duration Returns (per annum)
1 year  8.3%
3 year  12.1%
5 years  19.8%

Key Features

  • This is a 5-star rated fund by Groww.
  • It has an AUM of ₹ 22,109 Cr approximately
  • It has consistently outperformed its benchmark, CRISIL Balanced Fund Aggressive, since its launch.
  • Minimum SIP – Not Supported.

3. Principal Hybrid Equity Fund

Launched on 1st January 2018, this is a fund with moderate risk and has given a return of 16.17% since its launch.

Returns from this fund over the years

Duration Returns (per annum)
1 year   9.7%
3 year  14.2%
5 years  18.9%

Key Features

  • This is a 5-star rated fund by Groww.
  • It has an AUM of ₹ 1,408 Cr approximately
  • It has not consistently outperformed its benchmark, CRISIL Hybrid 35+65 Aggressive, since its launch. 1Y return are lower than benchmark.
  • Minimum SIP – ₹500.

There are many myths and false beliefs about mutual funds circulating in the markets from time to time. The most successful investors are the ones who ignore these myths and remain invested.

Read More: 10 Secrets Only Successful Mutual Fund Investors Know

Investing in mutual funds online is very simple and paperless. Simply log in to your Groww account, choose a fund, and invest using net banking – exactly like you would when shopping online.

Also Read: 5 Best Balanced Funds to Invest In

Happy Investing!