Axis Mutual Fund enters Balanced Advantage Fund category
by repositioning existing fund
· An open ended dynamic asset allocation fund
· To achieve dual objective of capital appreciation and income generation
· The fund will actively allocate between Equity and Fixed income based on market valuation and trend
· Benchmark: NIFTY 50 Hybrid Composite Debt 50:50 Index
· Repositioning effective date: October 1, 2021
Axis Mutual Fund, one of the leading mutual fund houses in India, renamed and repositioned its existing fund (Axis Dynamic Equity Fund) to Axis Balanced Advantage Fund. Axis Balanced Advantage Fund is an open ended dynamic asset allocation fund which manages exposure actively between Equity and Fixed income. The asset allocation is guided by an in-house proprietary methodology, which allows us to manage equity exposure in response to changes in underlying market conditions. This dynamic nature makes it an ideal investment solution for all investors as the fund not only manages to navigate market volatility better but also focuses on wealth creation over the long term. The repositioning becomes effective from 1st October 2021 and with this we aim to become a prominent player in the Balanced Advantage Fund category.
The inherent volatile nature of equities can sometimes lead to abnormality in price action in the near term. This can influence investor behaviour and lead investors to buy at market peaks and sell at market lows, causing massive wealth destruction. This very destruction can be mitigated if investors can be presented with a product that has intelligent risk management built in its core.
Axis Balanced Advantage Fund is aimed at finding a solution for this basic problem for investors. Through its proprietary methodology, it aims to dynamically manages Equity and Fixed Income exposure and tries to achieve the basic tenets of investing (Buy low, Sell High).
After the revision, Axis Balanced Advantage Fund will have greater flexibility to invest in a particular asset class with the minimum range of 0% to maximum range of 100% in both Equity and Fixed Income. The scheme also has the provision to invest 0% to 10% in units issued by REITs & InvITs.
While the in-house methodology guides the fund manager to allocation between asset classes, the stock selection is a complete bottom up process based on the Fund Managers view. The stocks picked in Axis Balanced Advantage Fund continue to remain backed by Axis Mutual Fund’s philosophy of unwavering focus on quality and will carry on looking for stocks that are expected to report faster growth than the relative benchmark (this includes sustainable earnings growth potential, credible management and acceptable liquidity), considering current times.
Axis Balanced Advantage Fund can be a part of an investors core allocation, irrespective of them being first timers or seasoned investors. The funds ability to manage asset allocation between equity and fixed income makes it an investment worthy for the long term.
On this development, Mr. Chandresh Nigam, MD & CEO, Axis AMC said, “As investors, we all want to invest with the confidence that our investments will not fall prey to vagaries of market volatility. Balanced Advantage funds allow investors to mitigate equity risk through a structured process that manages equity exposure dynamically. We believe that Balanced Advantage funds will transform investing experience for investors and allow them to benefit from the long term growth potential of equity while managing its risk.”
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