Axis Mutual Fund manages assets worth 318704 crores and was set up on 2009-09-04. Its current offering of mutual fund schemes includes 305 debt, 84 equity, 110 hybrid, 141 other, 20 solution oriented funds. The company is led by its CEO Gop Kumar Bhaskaran.
Axis Debt Funds are less volatile in comparison to equity funds because they invest predominantly in fixed income instruments. Investing in Axis Debt Mutual Funds is better than traditional instruments like fixed deposits, recurring deposits and parking funds in savings accounts. These schemes are less volatile and can deliver higher returns than other traditional investment instruments. However, it is advisable to pick debt funds based on financial goals. Also, Axis Debt Funds are highly liquid, where investors can park their emergency or surplus funds for a shorter duration (usually less than 12 months). Moreover, many investors consider Axis Debt schemes as a measure to diversify a portfolio across asset classes.
Things To Consider Before Investing in Axis Debt Mutual Fund
Investment Objective: The investment objective of Axis Debt schemes is to generate reasonable returns with lower risk and high liquidity. To achieve its objectives, Axis Debt Mutual Funds invests in fixed income instruments, money market instruments, and government securities belonging to different maturities and risk profiles.
Investment Strategy: The Axis fund manager(s) aim to deliver reasonable returns keeping the risk factor low depending on the fund investment strategy. Also, Axis debt schemes optimise the risk opportunities and maintain the balance between risk and returns. Furthermore, the fund manager of Axis AMC keeps an eye on the country’s micro and macroeconomic situations to assess the direction of interest rates. Accordingly, it helps investors to align their investment goal with the fund investment strategy for wealth creation.
Associated Risk: Axis Debt Mutual Funds carry a lower risk in comparison to equity mutual funds but carry a risk higher than fixed deposits and similar fixed income products. However, these Axis Debt Mutual Funds also have the potential to deliver higher returns. Also, Axis Debt Funds are subject to interest rate, credit, and liquidity risk. Moreover, as a risk reduction and control technique, the Axis AMC’s fund manager will conduct a thorough credit evaluation of the issuer company. Therefore, it is vital for investors to understand the risk associated with these debt schemes while choosing to invest in them.
An income arising from the sale of Axis Debt Fund schemes generates a capital gain. Capital gain on Axis Debt Mutual Fund is taxable depending on the holding period. The following table shows the taxation of Axis Debt Mutual Funds till March 31st 2023 –
Short Term Capital Gains (STCG)
Long Term Capital Gains (LTCG)
Holding Period
If holding period is less than 36 months
If holding period is more than 36 months
Taxation
Capital gains are taxable as per investor’s income tax slab rates. The STCG is added to the gross total income for the financial year.
Capital gains are taxable at a rate of 20% with indexation benefit.
According to the Finance Bill 2023, from April 1st 2023, the capital gains are taxable as per the investor’s income tax slab rate without any indexation benefit.
