Axis Mutual Fund has announced the launch of their new fund offer – Axis Floater Fund. The fund will open for subscription on July 12 and will be managed by Aditya Pagaria, Fund Manager –Fixed Income, Axis Mutual Fund. The portfolio of the scheme will look at 80% AAA/A1 holding along with 20% allocation to AA issuers.
The minimum amount of investment during the NFO period is Rs 5,000 and in multiples of Re 1 thereafter. According to the press release, the new fund will have a dynamic mix of high-quality instruments & AA issuers. It targets a portfolio average maturity of 6-18 months. The fund house believes that this product is suitable for investors looking to park short-term surplus funds or for those looking to limit the interest rate risks in their debt portfolio. The fund will primarily invest in floating rate instruments and fixed rate bonds that are swapped for floating rate characteristics.
“At Axis AMC, we have always believed in being ahead of time and introducing a product bouquet which gives our investors promising avenues for wealth creation. Every investor holds different goals, risk appetite and a different time horizon to achieve the set goals. Therefore, we aim at personalizing and intelligently crafting multiple investment options to fulfil the needs of our investors,” said Chandresh Nigam, MD & CEO, Axis AMC.
“The economic fundamentals are improving gradually and returning to normalcy. These are early signs of a pickup in demand and we believe we are the cusp of a new growth cycle. The country is also likely at the bottom of the interest rate cycle and we expect rates to see a gradual rate hike cycle in the medium term. With the launch of this fund, we believe that we will provide an efficient solution for short-term investors looking to navigate a possible rising rate environment,” Chandresh Nigam added.