Axis Mutual Fund Company has changed the name and categories of its mutual funds in adherence with the SEBI guidelines (Security Exchange Board of India).  This new rule states that there can only be one offering under each mutual fund category by a fund company.

This step is taken by SEBI to in order to simplify the investment process for investors.

Axis Mutual Funds Whose Names and Categories Have Changed

 Old Name  New Name   Old Category  New Category
Axis Banking & PSU Debt Fund Axis Banking & PSU Debt Fund Debt-Income
Debt-Banking & PSU
Axis Children’s Gift Fund Axis Children’s Gift Fund – With Lock in Hybrid-Equity Oriented
Solution Oriented-Children’s
Axis Corporate Debt Fund Axis Corporate Debt Fund Debt-Income
Debt-Corporate Bond
Axis Credit Risk Fund Axis Credit Risk Fund Debt-Credit Opportunities
Debt-Credit Risk
Axis Dynamic Equity Fund Axis Dynamic Equity Fund Hybrid-Equity Oriented
Hybrid-Dynamic Asset Allocation
Axis Equity Saver Fund Axis Equity Saver Fund Equity-Arbitrage
Axis Focused 25 Fund Axis Focused 25 Fund Equity-Diversified
Equity-Multi Cap
Axis Gold Fund Axis Gold Fund Gold-Fund of Funds
Others-FoF Domestic
Axis Income Fund Axis Strategic Bond Fund Debt-Income
Debt-Medium Duration
Axis Liquid Fund Axis Liquid Fund Liquid-Liquid Debt-Liquid
Axis Long Term Equity Fund Axis Long Term Equity Fund Equity-Tax Planning Equity-ELSS
Axis Regular Saver Fund Axis Strategic Bond Fund Debt-MIP
Debt-Medium Duration
Axis Short Term Fund Axis Short Term Fund Debt-Short Term
Debt-Short Duration
Axis Treasury Advantage Fund Axis Treasury Advantage Fund Debt-Ultra Short Term
Debt-Ultra Short Duration
Axis Triple Advantage Fund Axis Triple Advantage Fund Hybrid-Dynamic/Asset Allocation
Hybrid-Multi Asset Allocation

Axis Mutual Funds Whose Names and Categories Have Not Changed

Old Name  New Name  Old Category   New Category
Axis Bluechip Fund Axis Bluechip Fund Equity-Large Cap
Equity-Large Cap
Axis Enhanced Arbitrage Fund Axis Enhanced Arbitrage Fund Hybrid-Arbitrage
Axis Gilt Fund Axis Gilt Fund Debt-Gilt Debt-Gilt
Axis Midcap Fund Axis Midcap Fund Equity-Mid Cap
Equity-Mid Cap
Axis Multicap Fund Axis Multicap Fund Equity-Multi Cap
Equity-Multi Cap

Axis Mutual Fund Renaming and Re-Categorization: What Should Investors Do?

As an investor, you might have to change your investment strategy and make your investments according to the new guidelines by SEBI. There are primarily three consequences to the effect:

1. If Mutual Funds Are Being Merged:

The Asset Management Company will take care of the merger because there is no real change in the category and therefore the investor does not need to make any change to his/her investment strategy.

2. If  Mutual Fund Name Has Changed:

If only the name has changed, the investor need not worry. They can keep investing the way they did before.

3. If Mutual Fund Category Has Changed:

If the category of the fund has changed, then you need to modify your investments in such a way that it is in sync with the characteristics of the new category.

Benefits of Re-Naming and Re-Categorization

The Security Exchange Board of India (SEBI) wants to simplify the process of investing for investors and omit confusion. There are three basic benefits of the above phenomenon:

1. It reduces the category of funds, thereby removing confusion
2. It reduces the effort of selecting mutual funds
3. It is easier and more convenient to understand the different categories of mutual funds

Happy Investing!

DisclaimerThe views expressed here are that of the author and do not reflect those of Groww.