Axis Mutual Fund Revises Attributes of Axis All Seasons Debt Fund of Funds

Axis Mutual Fund has announced modifications to the Axis All Seasons Debt Fund of Funds, effective February 14, 2025. The scheme will be renamed Axis Income Advantage Fund of Funds. Alongside the name change, the investment objective has been updated. The scheme will now aim to generate optimal medium-term returns by investing in debt-oriented mutual funds and arbitrage funds, as opposed to its earlier focus solely on debt funds.

Revised Asset Allocation and Benchmark

The updated asset allocation allows the fund to invest 50-100% of its assets in debt-oriented mutual funds and up to 45% in arbitrage funds, with the remaining 0-5% allocated to money market instruments. Furthermore, the scheme’s benchmark will shift from the NIFTY Composite Debt Index to a hybrid benchmark of 65% NIFTY Composite Debt Index + 35% Nifty 50 Arbitrage TRI.

Management Team Update

The fund management team sees the addition of Karthik Kumar, who will join the existing managers Devang Shah, Hardik Shah, and Anagha Darade to co-manage the revised scheme.

Exit Window for Investors

To comply with regulatory requirements, unitholders are provided a 30-day exit window from January 15, 2025, to February 13, 2025. During this period, investors may redeem or switch their investments without incurring any exit load. This option is not mandatory, and those who choose to remain invested will automatically consent to the changes.

Special Instructions for Investors

Investors with Systematic Investment Plans (SIPs) must cancel future installments if they wish to discontinue investments in this scheme. Additionally, those with pledged units need to release their encumbrances before submitting redemption or switch requests.

Communication to Unitholders

Axis Mutual Fund has notified unitholders of these changes via a notice-cum-addendum and a detailed letter. Redemption requests will be processed within three working days of submission, provided they are lodged within the exit window.

From February 14, 2025, all transactions will attract the applicable exit load. Investors are encouraged to assess their options within the provided time frame.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.