Axis Mutual Fund has filed an offer document with securities and exchange board of India (SEBI) to launch Axis Short Term Fund, an open-ended debt scheme.
The new fund offer (NFO) price for the scheme is Rs 10 per unit.
Investment objective:The scheme will endeavor to generate stable returns with a low risk strategy while maintaining liquidity through a portfolio comprising of debt and money market instruments.
Plans: The scheme offers growth and monthly dividend option. Monthly dividend option will have payout and reinvestment sub options.
Asset allocation: The scheme would invest 30-100% of asset in money market instruments and debt instruments including government securities, corporate debt, securitized debt (includes securitized debt (excluding foreign securitized debt) up to 30% of the net assets of the scheme) and other debt instruments with maturity/average maturity/residual maturity/interest rate resets less than or equal to 375 days or have put options within a period not exceeding 375 days. 0-70% in debt instruments including government securities, corporate debt, and securitized debt (includes securitized debt (excluding foreign securitized debt) up to 30% of the net assets of the scheme) and other debt instruments with maturity/average maturity/residual maturity/interest rate resets greater than 375 days. The scheme shall not invest in foreign securitized debt. Investment in derivatives will be up to 100% of the net assets of the scheme. Investment in derivatives shall be for hedging, portfolio balancing and such other purposes as maybe permitted from time to time. The scheme can invest up to 50% of net assets in foreign securities.
Minimum application amount:The minimum application amount is Rs 5,000 and in multiple of Re 1 thereafter.
Target amount:The fund seeks to collect a minimum subscription amount of Rs 10 million.
Benchmark index:The schemes performance would be benchmarked against Crisil Short Term Bond Fund Index.
Fund mangers:Sriraj Bhattacharjee and Ninad Deshpande are the fund mangers of the scheme.
