Axis Mutual Fund on Thursday, January 18, launched the Fixed Term Plan - Series 120 (91 Days). The new fund offer (NFO), falling under the income category and characterised as a close-ended plan, will be available till January 23, 2024. The primary goal of the scheme is to deliver returns by investing in a diversified mix of debt and money market instruments.
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However, there is no assurance that the investment objective of the scheme will be achieved, Axis Mutual Fund said.
With a tenure of 91 days from the date of allotment, the scheme's liquidity feature allows units to be listed on the stock exchange(s) but cannot be directly redeemed until the maturity date.
Asset allocation
Under normal circumstances, the fund's asset allocation will range from 0-100% in debt and money market instruments, reflecting a low to moderate risk profile.
Plans and options
Investors have the flexibility to choose between the regular plan and the direct plan.
Each plan offers two distinct options: Growth and Income Distribution-cum-Capital Withdrawal (IDCW).
Minimum application amount and mode
Interested investors can participate in the scheme with a minimum application amount of ₹5,000 and subsequent multiples of ₹10.
Notably, non-CTS/outstation cheques/demand drafts will not be accepted.
Applications in the New Fund Offer (NFO) will be processed exclusively through the Direct Credit mode (Transfer/NEFT/RTGS), the fund house said.
Switch-in requests
For investors looking to switch from equity and hybrid schemes, requests will be accepted until January 22, 2024.
Meanwhile, those switching from debt schemes will have time until January 23, 2024, to submit their requests.
Expense details
With no entry load applicable and an exit load set at nil, the scheme's expenses, as estimated by the Asset Management Company (AMC), are expected to be up to 1.00% of the daily net assets.
Listing
Units of the Axis Fixed Term Plan - Series 120 (91 Days) will be listed on the capital market segment of the BSE and/or any other stock exchange.
In Conclusion
While the Axis Fixed Term Plan - Series 120 (91 Days) offers a decent investment opportunity with its diversified portfolio and strategic focus, investors should evaluate their investment goals and risk tolerance.
As market conditions remain unpredictable, prospective investors should conduct thorough research or seek professional financial advice before making any investment decisions, experts say.
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