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, 80 equity, 110 hybrid, 141 other, 20 solution oriented funds. The company is led by its CEO Gop Kumar Bhaskaran.
Axis Hybrid Funds are balanced funds that invest in stocks of companies for exposure to equities. Simultaneously, Axis Hybrid Mutual Funds invests in fixed income instruments or debt instruments to balance the risk of the portfolio.
Axis Hybrid Fund schemes have historically delivered higher returns in comparison to debt mutual funds.
Investors who seek diversification in their overall portfolio must invest in Axis Hybrid MF schemes.
Owing to the exposure to debt instruments, Axis Hybrid Mutual Funds are suitable for conservative investors who wish to balance risk and returns.
Axis Hybrid Funds are suitable for investors with a medium- to long-term investment horizon.
Things To Consider Before Investing in Axis Hybrid Mutual Funds
Investment Objective: The investment objective of Axis Hybrid Mutual Funds is to deliver long-term capital appreciation as well as liquidity to its investors. The scheme investment objective is to invest in a diversified portfolio comprising equity and equity-related securities along with debt instruments. Also, Axis Hybrid Mutual Funds are open-ended schemes that aim toward a balance of risk and diversification of investment portfolio.
Investment Strategy: The investment strategy of Axis MF Hybrid schemes is to generate long-term wealth creation from a mixed portfolio comprising majorly equity and equity-related instruments. The asset allocation strategy between equity and debt is per SEBI/AMFI guidelines and also depends on scheme type under the hybrid category, such as arbitrage, asset allocation, equity savings fund and so on. Therefore, knowing the investment objective will help them identify which Axis Hybrid Scheme is suitable.
Associated Risk: Owing to the minimum exposure of 65% to equity and equity-related instruments, Axis Hybrid Mutual Funds carries an associated risk to the equity market and other risks. To mitigate such risks, the Axis Hybrid Mutual Funds fund managers construct a portfolio according to the guidelines. However, due to the combination of equity and debt, Axis Hybrid Mutual Funds carry relatively lower risk than equity-oriented funds. Moreover, this combination of equity and debt help investors create a balance between risk and return.
Tax on Axis Hybrid Mutual Funds
The tax on Axis MF Hybrid funds depends on the percentage of exposure of the scheme towards equity and debt. If the scheme is exposed to equity securities of more than 65%, then the tax treatment is similar to that of an equity fund. Otherwise, it will be similar to that of debt fund taxation. Therefore, the following table shows the taxation of Axis Hybrid Mutual Funds –
Funds
Short Term Capital Gains (STCG)
Long Term Capital Gains (LTCG)
Equity oriented fund
Holding Period: less than 12 months Tax: at 15% flat in investor’s hands irrespective of the income tax slab rate.
Holding period: 12 months or more Tax: Capital gains up to Rs. 1 lakh are exempted. Above Rs. 1 lakh is taxable at 10%
Debt-oriented Fund (Till March 31st 2023)*
Holding Period: less than 36 months Tax: The capital gains are added to the overall income and taxed as per the individual income tax slab rate.
Holding Period: 36 months or more Tax: Capital gains are taxable at 20% with indexation.
*Note: From April 1st 2023, the capital gains from debt mutual funds are taxable as per the investor’s income tax slab rate. This is in accordance to the Finance Bill 2023. Debt mutual funds will no longer have LTCG benefit.
