Axis Mutual Fund has announced an NFO (New Fund Offer) for Axis Ultra Short Term Fund. The fund will be classified as an ultra short duration fund and hence will have to hold a portfolio of Macaulay Duration between 3 – 6 months. Macaulay Duration is the weighted average time to maturity of the cash flows from a bond portfolio. The NFO opened on 27th August 2018 and will close on 4th September.
Axis Mutual Fund has a good track record with short term debt funds and liquid funds. Its liquid fund has one year returns of 7.08% and three year returns of 7.28%, well in excess of its benchmark and peers. Axis Short Term Fund has one year returns of 4.65% due to rising interest rates, but this is still above its benchmark and peers. It has three year returns of 7.29%.
This new ultra short term fund is benchmarked against the CRISIL Ultra Short Term Debt Index. The scheme’s chosen index tracks a portfolio comprising various short maturity money market instruments as well as bonds rated AA+ and above. The index has produced returns of 7.12%, 7.50% and 8.40% for the 1 year, 3 year and 5 year periods as of 1st August 2018.
Aditya Pagaria who co-manages Axis Liquid Fund, Axis Treasury Advantage Fund and Axis Banking and PSU Fund will be the fund manager of this fund. The minimum application amount is Rs 5,000. The fund will offer the growth and dividend (daily, weekly, monthly and regular) options.
The following are the key details of the Axis Ultra Short Term Fund NFO:
| Minimum Investment | Rs. 5000 |
| Benchmark | CRISIL Ultra Short Term Debt Index |
| Fund Manager | Aditya Pagaria |
| Available Options | Growth, Dividend (daily, monthly, weekly and regular) |
| NFO Period | 27th August to 4th September |
Other Funds by Axis Asset Management Company
| Scheme Name | 3Y Returns (%) | AUM (Rs. Cr.) | Category |
| Axis Bluechip Fund | 20.03 | 1989.24 | Large Cap Fund |
| Axis Focused 25 Direct Plan | 18.38 | 3714.11 | Multi Cap Fund |
| Axis Midcap Direct Plan | 18.25 | 1416.77 | Mid Cap Fund |
| Axis Long Term Equity Fund | 17.35 | 17263.04 | ELSS |
| Axis Small Cap Fund | 15.98 | 448.04 | Small Cap Fund |
| Axis Triple Advantage Fund | 11.65 | 302.04 | Multi Asset Allocation |
| Axis Gold Direct Plan | 10.97 | 51.92 | Gold Funds |
| Axis Equity Saver Fund | 10.17 | 663.85 | Equity Hybrid Saving Fund |
| Axis Dynamic Bond Fund | 9 | 220.35 | Dynamic Bond Fund |
| Axis Banking & PSU Debt Direct Plan | 8.92 | 509.03 | Banking and PSU Fund |
| Axis Short Term Direct Fund | 8.37 | 5746.82 | Short Duration Fund |
| Axis Strategic Bond Fund | 8.32 | 1420.47 | Medium Duration Fund |
| Axis Gilt Fund | 8.16 | 47.74 | Gilt Fund |
| Axis Treasury Advantage Fund | 8.09 | 2921.86 | Low Duration Fund |
| Axis Credit Risk Fund | 7.21 | 1839.94 | Credit Risk Fund |
| Axis Liquid Direct Fund | 6.93 | 24161.44 | Liquid Fund |
| Axis Regular Saver Fund | 6.87 | 390.26 | Conservative Hybrid Fund |
| Axis Arbitrage Fund | 6.66 | 2053.07 | Arbitrage Hybrid Fund |
{Data as on Feb 18, 2020; Source: Value Research}