Axis Retirement Savings Fund: NFO review

Axis Mutual Fund has launched a new solution-oriented fund called the Axis Retirement Savings Fund. The new fund offer closes for subscription on December 13. Like the other retirement solution-oriented scheme, this scheme also comes with a lock-in period of five years or until retirement age.

The fund will be co-managed by Jinesh Gopani and R Sivakumar. Axis Retirement Savings Fund offers flexible portfolios to investors with different risk profiles. The scheme offers three investment plans: aggressive plan where equity exposure will range between 65-80%, dynamic plan where equity exposure will be dynamically managed between 65-100%, and conservative plan where debt exposure will range between 40 – 80%.

The fund offers a feature called iPlus SIP Insurance that offers a complementary life cover that is equal to the remaining commitment of their long-term SIPs.

Should you invest?

Mutual fund advisors maintain that fundamentally, retail investors should stay away from new fund offers. They should investors should go for an NFO only if it offers something that is not available in the market. “Axis Mutual Fund has been a good performer across categories in the last two years. The fund manager- Jinesh Gopani, has managed the other schemes really well. However, there are some retirement schemes which have a 10 year track record and have proven themselves in various market cycles with good returns. There are schemes from many fund houses which have a five-year track record,” says Santosh Joseph, CEO & Founder, Germinate Wealth Solutions LLP, a Bengaluru-based wealth management firm.

Santosh also says that investors who are savvy with their mutual fund investments can also choose plain vanilla equity schemes for retirement planning. “All equity schemes can serve your purpose of retirement planning. If you are a new investor or if you think you might get nervous or tempted in the market and pull the money out, you shuld invest in a retirement-oriented scheme with a long-term established track record,” says Satosh Joseph.

READ  Mervyn King presses Rishi Sunak over pay for self-employed

Scheme at a glance
Benchmark: The three portfolios of the scheme are benchmarked differently. Axis Retirement Savings Fund – Aggressive Plan is benchmarked against NIFTY 50 Hybrid Composite Debt 70:30 Index. Conservative Plan is benchmarked against NIFTY 50 Hybrid Short Duration Debt 25:75 and dynamic plan is benchmarked against NIFTY 50 Hybrid Composite Debt 65:35.

Minimum Investment: Rs 5,000

Plans: Growth, Dividend

Type: Open-ended

Lock-in period: 5 years or till retirement (whichever is earlier)



Please enter your comment!
Please enter your name here