Axis Children’s Gift Fund

Axis Mutual Fund recently launched its 19th mutual fund scheme—Axis Children's Gift Fund. This is the first open-ended balanced scheme launched by the fund house.  

 

This child plan scheme is targeted at individuals who wish to invest for their child’s financial goals like higher education etc.  

The chid plan scheme of Axis MF will invest 40-60% of its portfolio in equity stocks, 25-55% in debt and 5-15% in arbitrage opportunities. 

 

The scheme will be benchmarked to a composite index having an equity weightage to the Nifty 50 index and CRISIL Composite Bond Fund index.

 

The scheme will offer two sub-plans— Compulsory Lock-in and No Lock In.

 

 Under the Compulsory Lock-in, the investment will be locked-in till the unitholder (being the beneficiary child) is 18 years. Investment may be redeemed after the unitholder is 18 years or three years whichever is later. 

 

In the No Lock In, the investment can be redeemed at anytime, but exit load may be applicable. If the units are redeemed within a year, an exit load of 3% will be applicable. 

 

Within one to two years, an exit load of 2% will be applicable and within two to three years, an exit load of 1% will be payable. After three years, there will be no exit load charged.

In 2001-02, four fund houses namely HDFC MF, ICICI Prudential MF, LIC Nomura MF and SBI Magnum MF, launched similar schemes oriented to child oriented goals.

Apart from these four fund houses, Tata MF and UTI MF too manage similar schemes which were launched in the 1990’s.

 Fund houses like Peerless MF and Franklin Templeton MF have relaunched and merged their respective child plan schemes.

 Apart from UTI Children Career Balanced Plan which has a corpus of Rs2,795 crore, the combined corpus of remaining child plan schemes is just around Rs995 crore, despite being launched over a decade back.

Axis Mutual Fund, launches new fund as Axis Children’s Gift Fund, an open ended balanced scheme, which would endeavor to generate income by investing in debt & money market instruments along with long-term capital appreciation through investments in equity & equity related instruments.

Read more at: http://www.moneycontrol.com/news/mf-news/axis-mf-launches-axis-childrens-gilt-fund_4259881.html?utm_source=ref_article

Axis Mutual Fund, launches new fund as Axis Children’s Gift Fund, an open ended balanced scheme, which would endeavor to generate income by investing in debt & money market instruments along with long-term capital appreciation through investments in equity & equity related instruments.

Read more at: http://www.moneycontrol.com/news/mf-news/axis-mf-launches-axis-childrens-gilt-fund_4259881.html?utm_source=ref_article