Axis Mutual Fund announced the launch of their New Fund Offer Axis Long Duration Fund. It is an open-ended debt scheme investing in instruments such that the Macaulay Duration of the portfolio is greater than 7 years; a relatively high-interest rate risk and a relatively low credit risk. The new fund will track the NIFTY Long Duration Debt Index A – III. The NFO for Axis Long Duration Fund opens on 7th December 2022 and closes on 21st December 2022. Additionally, the fund will be managed by Devang Shah, Kaustubh Sule, and Hardik Shah and the minimum investment amount would be Rs. 5,000 and in multiples of Re. 1/- thereafter.
The primary investment objective of the Axis Long Duration Fund is to generate optimal returns consistent with moderate levels of risk. This income may be complemented by a capital appreciation of the portfolio. As the current fund positioning aims to invest and hold onto long-dated Government securities, the Axis Long Duration Fund can be used to build and structure long-term income solutions at the time of retirement.
Commenting on the launch of the fund, Chandresh Nigam, MD & CEO, Axis AMC said, “In the current macro environment, fixed income strategies have the potential to be an attractive option for investors, especially those who are in the middle of their career lifecycle and wish to plan for post-retirement. In effect, the gap in earning potential over a meaningfully long period can have a material impact on the end corpus. Using systematic investing solutions like SIP & SWP, investors can create a completely flexible investment plan using long-dated government bonds.”
