Axis Fixed Term Plan - Series 119 (71 Days), an offering from Axis Mutual Fund, has opened for subscription on Wednesday, January 3. The mentioned new fund offer (NFO) will be available till January 9. This close-ended income scheme aims to generate returns through a portfolio of debt and money market instruments maturing on or before the scheme's maturity date.
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However, the scheme does not guarantee any specific returns, and its success in achieving its investment objective is not assured, the fund house said.
Understanding fixed maturity plan
Fixed Maturity Plan (FMP) is a fixed tenure mutual fund scheme, that invests its corpus in debt instruments maturing in line with the tenure of the scheme.
The investment window opens with a new fund offer (NFO) with defined opening and closing dates. One can only invest in that specific offer before the closing date.
The tenure of Axis Fixed Term Plan - Series 119 is 71 days from the date of allotment.
Load structure
There is no load structure with Axis Fixed Term Plan - Series 119 (71 Days).
Subscription amount
One can invest a minimum of ₹5,000 and multiples of ₹10 thereafter in Axis Fixed Term Plan - Series 119 (71 Days).
Liquidity
Units cannot be redeemed directly until the maturity date. However, they will be listed on stock exchanges, allowing buying and selling during trading hours.
Details on trading and settlement
The units will be listed on stock exchanges, allowing investors to trade during market hours.
The pricing will depend on demand, supply, and the Net Asset Value (NAV) of the units. Investors must note the suspension of trading one day before the record date for redemption.
Dematerialisation and Transfers
Investors have the option to hold units in physical form or dematerialised form (Demat).
Units held in demat form are freely transferable in accordance with SEBI regulations.
Expenses and asset allocation
The AMC will bear New Fund Offer (NFO) expenses. The scheme's recurring expenses are estimated at up to 1.00% of the daily net assets.
The asset allocation predominantly focuses on debt and money market instruments, ranging from 0 to 100% of net assets, Axis Mutual Fund said.
A look at fixed maturity plans' returns
| Scheme Name | 3-month | 6-month |
| HDFC FMP 1204D December 2022 (47) - Direct Plan - Growth | 1.65% | 2.63% |
| HDFC FMP 1204D December 2022 (47) - Direct Plan - Growth | 1.65% | 2.63% |
| Aditya Birla Sun Life Fixed Term Plan - Series UB (1224) - Direct Plan - Growth | 1.67% | 2.65% |
| Aditya Birla Sun Life Fixed Term Plan - Series UB (1224) - Direct Plan - Growth | 1.67% | 2.65% |
| SBI Fixed Maturity Plan (FMP) - Series 43 - Direct Plan - Growth | 1.62% | 2.99% |
| SBI Fixed Maturity Plan (FMP) - Series 43 - Direct Plan - Growth | 1.62% | 2.99% |
| Union Fixed Maturity Plan - Series 13 - Direct Plan - Growth | 1.60% | 2.61% |
| Union Fixed Maturity Plan - Series 13 - Direct Plan - Growth | 1.60% | 2.61% |
| SBI Fixed Maturity Plan (FMP) - Series 47 - Direct Plan - Growth | 1.66% | 3.04% |
| HDFC FMP 2638D February 2023 (47) - Direct Plan - Growth | 1.38% | 1.70% |
| HDFC FMP 2638D February 2023 (47) - Direct Plan - Growth | 1.38% | 1.70% |
(Source: Moneycontrol)
Should one invest?
Axis Fixed Term Plan - Series 119 (71 Days) focuses on short-term returns from debt and money market instruments within 71 days. It could be suitable for investors seeking short-term, low-to-moderate-risk investments.
However, since the investment objective doesn't assure returns and the fund's success depends on market conditions, individuals should carefully evaluate their financial situation and consult financial advisors before investing, experts say.
(Edited by : Amrita)
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