Axis Mutual Fund is one of the largest mutual fund company of India. In the short span, It has come in the league of big fund houses. Not to mention most of the mutual fund investors know about the Axis long term equity fund. This fund is among the best equity linked saving schemes.
- 1 Parent Of Axis Mutual Fund
- 2 History
- 3 Philosophy of Axis Mutual Fund
- 4 The Mechanism To Choose the Stock
- 5 How Axis Mutual Fund Manages Risk
- 6 Axis Mutual Fund Schemes
- 7 Types of Axis Mutual Fund Scheme By Investment Objective
- 8 Tax Benefits of Axis Mutual Fund Scheme
- 9 Registered Office
Parent Of Axis Mutual Fund
The Axis bank is the parent of the Axis Mutual Fund. The old timer would recall that this bank was earlier called as the unit trust of India. Now you can see the branches of Axis bank in every city.
The headquarter of Axis Bank is in Mumbai. But you can find the branches of Axis bank in almost every city of India. Moreover, It has the international presence. It is present in countries like UAE, UK, Sri Lanka, China and Hong-Kong.
The Axis mutual fund has the collaboration with the Schroder Asset Management company of the Singapore. The Schroders has 25% share of Axis Mutual fund.
Today, Axis mutual fund has offices in 75 cities. It has 49 mutual fund schemes. Over 13.5 lacs people has invested in the mutual fund schemes of the Axis mutual fund.
Philosophy of Axis Mutual Fund
The Axis Mutual fund credits it success to the focus on ‘Long term wealth creation, Outside in (Customer) view and Long term relationship’. The Axis Mutual fund has the following objective.
- To identify the high growth companies which will grow over the long period of time. These companies have the potential to build wealth for the investors.
- Invest in only those companies which have the potential to give 15% annual return for the next five years.
- Invest in Businesses rather than the stocks
- Outside-in View
- Every decision is taken considering about the investors.
- Communicate in investors language
- Consistent Wealth Creation
- Investor money should grow consistently over a long period
- Encourage investors to build a long-term perspective
- Long-term Relationships
- The company want to build the axis brand for a long term.
- The company aims to retain its investor forever.
The Mechanism To Choose the Stock
The Axis mutual fund follows these steps while selecting a company for the investment.
- Talk to Company Managements
- Visit the units of Company
- Understand their products
- Work with them
- See the profitability of the company
- Assess the Sustainability of the Company
How Axis Mutual Fund Manages Risk
The axis mutual fund company follow these principles to manage the risk. I have taken these points from the website of axis mutual fund.
- Buy at a good price. Detailed in house research facility.
- Invest in High Quality businesses
- Sophisticated risk management system
- Choose those stocks where volatility is low
Axis Mutual Fund Schemes
We can divide the schemes of axis mutual fund into two categories. This can be on the basis of structure, Mode and investment objective.
the most of the mutual fund scheme of the axis bank are open ended. In these funds, you can invest any time. Similarly, you can get back your investment any time.
Closed Ended Fund
These funds are not always open. You have to buy the units of the closed-ended fund during the NFO period. While the redemption is also possible after the completed duration of a scheme.
The regular scheme of axis mutual fund is distributed through the mutual fund distributors. This scheme gives commission to the distributors thus the return of this scheme is slightly low.
The direct schemes are sold directly through the axis mutual fund offices or Axis mutual fund website (www.axismf.com). Some online companies also sell the direct mutual fund schemes.
Growth Option of Axis Mutual Fund Schemes
Every mutual fund scheme of axis mutual fund has the two options. In the growth option, you did not get money till the redemption of mutual fund units.
Dividend Option of Axis Mutual Fund Schemes
The dividend option of axis mutual fund scheme gives a dividend to the investor before the redemption. This dividend is given if the mutual fund scheme earns a profit. Because of this intermediate payment, the final redemption value of dividend option is lower than the growth option.
Types of Axis Mutual Fund Scheme By Investment Objective
Every mutual fund house has the scores of mutual fund schemes. This happens because of the different investment objectives. Some mutual fund scheme focuses on the investment which gives fixed return while some focus on the share market. Similarly, there are various objectives of mutual fund schemes.
Equity schemes invest in shares. The investment in share does not guarantee the return. You can get a high return or a big loss. The equity mutual fund schemes are further divided.
These schemes can invest in any type of shares. These are not restricted to any sector or size of the company. However, these funds do not invest in small companies. Example – Axis Equity Fund
The midcap funds invest in shares of medium size companies. These funds avoid the big and small companies. e. g. Axis Midcap Fund
Equity Linked Saving Schemes
The ELSS are the mutual funds to which this site is dedicated. Basically, these funds are the equity diversified fund but with the lock in period of 3 years. You can’t redeem your investment before the 3 years. e. g. – Axis Long Term Equity Fund
These mutual fund schemes invest money in various sectors but stick to a fixed theme like services, exports, new economy etc. e. g, Axis Focused 25 Fund
These funds invests in shares but from a specific sector. These sectors may be banking, pharma, infrastructure etc. Only sector expert should try these funds. e. g. Axis Banking Fund
These mutual funds schemes cab invest across the share market. These fund son not restricts themselves to the large cap or midcap.
These funds do not invest in share market. Rather they invest in debt securties. The government bonds, corporate bonds are debt securities. These bond gove almost fixed return. The debt funds give return similar to fixed deposit. e g. Axis Liquid Fund, Axis Short term bond fund
Balanced /Hybrid Funds
These mutual fund scheme invest in the shares as well as in the bonds. The investment in equities may give high return while investment in bonds give the security. The balanced fund which are tilted towards shares are called as the equity oriented balanced fund. Whereas, the balanced fund which are tilted towards bonds are called as the debt oriented balanced fund. e. g. Axis Hybrid Fund
Tax Benefits of Axis Mutual Fund Scheme
The Equity funds (diversified, midcap, flexicap, ELSS) enjoy the tax benefit of share investment. Like shares, the profit from the equity mutual fund is not subject to capital gains tax.
Tax Benefit To ELSS
The ELSS mutual fund enjoy extra tax benefit. The investment into ELSS give tax deduction under section 80c. Along with this, there is no capital gains tax on ELSS. For, it is an equity mutual fund.
The registered office of the axis mutual fund is in the Mumbai. The address of Axis Mutual Fund is given below
Axis House, 1st Floor, C-2, Wadia International Centre, Pandurang Budhkar Marg, Worli, Mumbai – 400025.