Axis Mutual Fund to launch Axis Dynamic Equity Fund

Axis Mutual Fund, one of the premier asset management companies in India, has announced the launch of Axis Dynamic Equity Fund, an Open-Ended Equity Scheme. The key feature of the fund is that it does not maintain a fixed allocation to equity but instead uses a systematic rules based model to dynamically adjust its equity allocation over time.


Traditional equity funds tend to remain fully invested across market cycles and have delivered great returns over the long term. However equity markets are cyclical in nature and exhibit intermittent episodes of market fluctuations/ sell-offs including occasionally large falls. Consequently many investors tend to not remain invested in equity funds across cycles and instead redeem or stop investing during challenging market periods and miss out on the long term benefits. In fact as per a study by Axis AMC over the period 2003-16, investors lost out on 6.3% of returns per annum compared to what the average equity fund has delivered over this period!

Axis Dynamic Equity Fund has been conceived as a tool for conservative investors who would prefer to see lower volatility and drawdowns in their equity allocations. This can be achieved by systematically adjusting equity allocations using a fixed set of variables that look at the fundamental, technical and risk picture of the market to arrive at the appropriate allocation.

Key Product Highlights:

  • Axis Dynamic Equity Fund will work on 2 tiers – the first tier is the model that decides the equity allocation and the second tier is the actively managed portfolio within that allocation
  • The fund will use a proprietary in-house quantitative model to determine appropriate equity allocation using a 3-pillar approach that considers the valuation, trend and risk of the market. The model will help the fund arrive at the dynamic allocation on a non-subjective basis.
  • The net equity allocation can be between 30-100% of the portfolio. The fund will use hedging to reduce net equity exposure below 65%, such that the fund continues to enjoy equity taxation. The allocation to debt is the residual number that is arrived at after deciding the equity and derivative allocation.
  • Once the model decides the equity allocation, the fund manager, wouldthenconstruct the stock portfolio, which would be a high quality multi-cap portfolio constructed on a bottom-up basis. The role of the model is limited to deciding the equity allocation only and the portfolio is actively constructed by the fund manager.
  • The asset allocation decision is reviewed on an on-going basis (once every 2 months) and is dynamically linked to movements in market variables.

It is important that dynamic funds should not be seen as market timing but instead as risk management strategies. By isolating the different variables that affect the market in the medium term and by systematically adjusting exposure to deal with them, the fund is consciously managing the market risk. While such an approach may make it likely that such funds will lag the equity market during a sharp rally, it should allow the fund to reduce drawdowns during periods of turmoil and thus can help deliver reasonable equity exposure with sharply lower risk over a cycle.

Speaking on the launch of this fund and the thought behind it, Mr Chandresh Kumar Nigam, MD&CEO, Axis Asset Management Company Ltd. said, “It is very important to align the investment objective of mutual funds to investor needs. With Axis Dynamic Equity Fund, we are trying totackle the single biggest concern that has held back investors from experiencing equity – worry of sharp swings in the market.We believe that this fundissuitable for all class of investors but especially so for conservative investors to help them participate in wealth creation and compounding potential of equity overthe long term”

Key Features:

Minimum Amount: Rs. 5,000 and in multiples of Re. 1/- thereafter

Plans/Options: Growth and Dividend (pay out and reinvestment options)

Benchmark: CRISIL Balanced Fund –Index

Fund Manager: Mr. AnupamTiwari and MrAshwinPatni would manage Equity portion while MrR. Sivakumarwould manage the Debt portion

About Axis Mutual Fund:

Axis AMC has completed seven years of operations and within a short span has over 20 lakh active investor accounts. It currently has a well-rounded product suite of over 50 schemes across asset classes and a presence in over 90 cities. Axis AMC is a joint venture between Axis Bank, India’s third largest private sector bank and Schroders ‐ one of the largest asset managers in UK.

For more information, please visit

This product is suitable for investors who are seeking*:

• Capital appreciation while generating income over medium to long term

• Investment in equity and equity related instruments as well as debt and money market instruments while managing risk through active asset allocation

* Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC). Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

Jul 17, 2017
More News

Post Your Comments
Security Code*
More News
Photo Gallery

Trailer of Neethane En Ponvasantham

Trailer of 'Nanban'