Axis Equity Hybrid Fund (An open ended hybrid scheme investing predominantly in equity and equity related instruments) This product is suitable for investors who are seeking*: Capital appreciation along with generation of income over medium to long term Investment in equity and equity related instruments as well as debt and money market instruments *Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
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Axis Equity Hybrid Fund · Bajaj Finance Limited Tech Mahindra Limited Hindustan Unilever Limited Housing Development Finance Corporation Limited Titan Company Limited ICICI Bank
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Axis Equity Hybrid Fund (An open ended hybrid scheme investing predominantly in equity and equity related instruments)
This product is suitable for investors who are seeking*:
Capital appreciation along with generation of income
over medium to long term
Investment in equity and equity related instruments as
well as debt and money market instruments
*Investors should consult their financial advisers if in
doubt about whether the product is suitable for them.
Best way is driving at moderate/economy speed with
controlled use of throttle
What gives best mileage
in a two wheeler
vehicle?
Commuter motorcycles usually come with an economy
indicator or a „green zone‟ painted on speedometer to display
sweet spot
2
Making the ride frugal!
MODERATE SPEED
Consumes less fuel
Offers optimum grunt
LESS THROTTLE MAXIMUM MILEAGE
Increases fuel efficiency
Reduces load on engine
Gives better control on the vehicle
3
Making the ride frugal!
EQUITY
Opportunity to capture growth
Potential of higher returns
FIXED INCOME RISK ADJUSTED RETURNS
Potential of higher return with relatively
lesser risk
Stability by being less volatile
Regular income generation
Minimum -2.6 2.4 1.1
Maximum 59.5 12.6 41.1
Average 17.3 6.9 14.5
Std Deviation 10.0 2.5 7.1
3 year performance (Rolling return - Apr 02 – Mar 19)
Risk Adjusted Return: 70% Equity + 30% Debt with monthly rebalancing. Equity: Nifty 50 TRI Index, Fixed Income: Crisil Composite Bond Fund Index; Data period: April 2002 – 31st Mar 2019. Source:
MFI, Axis Internal Analysis. Past performance may or may not be sustained in future. For illustration & explanation purpose only. Does not reflect performance of any scheme. All numbers are
annualized. 4
Different Reactions Every asset has its unique benefit in a portfolio to achieve a common goal
Equity: Nifty 50 Index, Debt: Crisil Composite Bond Fund Index; MFI, Axis Internal Analysis. Past performance may or may not be sustained in future. For illustration & explanation purpose only. Does not reflect performance of any scheme.
Lesser the correlation among assets, lower the risk Lower correlation among assets improves diversification gains
Not all asset class will move in same direction at all
times.
If correlation is higher, sensitivity to market
movement rises. This can add to overall risk.
Lower correlation acts as hedge against each other and
hence reduces risk and optimizes return
DEBT EQUITY
Returns (CAGR)
Bull market
(2004 - 07) 2.4% 48.6%
Bear market
(2008 - 09) 18.6% -50.3%
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Equity: Nifty 50 Index, Debt: Crisil Composite Bond Fund Index; MFI, Axis Internal Analysis. ^Effective risk: Standard deviation based on daily returns for the investment period. Investment Period: (Apr 02 – May 18). Effective allocation is the allocation at the end of the period (Mar 19)
Diminish the tendency for “portfolio drift,” and thus potentially reduce their exposure to risk relative to their target asset allocation
Lowers overall risk and optimizes returns relative to target allocation
Rebalancing within the fund makes it cost & tax efficient for investors as compared to investors doing it at their end
SIMPLE INFOGRAPHIC SLIDE Downside protection through diversification Downside protection aim to reduce the frequency and/or magnitude of capital losses, resulting from significant asset market declines
Aims to limit the impact of potential losses from market downturns
If the markets fall by Increase needed to
recover
-10% 11%
-15% 18%
-20% 25%
-50% 100%
-80% 400%
Higher the fall, larger is the increase required to recover
Fixed Income: CRISIL Composite Bond Fund Index, Equity : Nifty 50 Index. Drawdown is the peak-to-trough decline during a specific recorded period of an investment. Past performance may or may not be sustained in future. Drawdown is the percentage between the peak and the subsequent trough.
Indicative positioning on risk return estimates from strategy based indices. For illustrative purposes only
Axis Equity Hybrid Fund Product Positioning : Balanced Approach to Investing
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Please refer the Scheme Information Document for detailed description on asset allocation and investment strategy
Scheme Proposition An open ended hybrid scheme investing predominantly in equity and equity related instruments
Equity Allocation
65-80%
Debt Allocation
20-35%
Best of Both Worlds
Equity component will
follow a multi-cap bottom
up best ideas strategy
Debt component will follow
a tactical approach across
sovereign bonds and
corporate bonds
Risk return tradeoff is likely to be favorable over the
medium term
Good ideas can do better irrespective of its
sector/theme/size
Focus on fast growing sectors with bottom up stock
picking approach
Equity
Investment Approach
Large cap bias with up to 30% in midcaps*
*Investment focus is based on current market outlook and is subject to fund manager
discretion. Investors are advised to refer SID for investment strategy of the scheme
EQUITY
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The portfolio duration and credit exposures will be
decided based on a thorough research
Flexibility to invest in the entire range of debt
instruments across credit/duration spectrum
Active duration management
Debt
Investment Approach
Invest in best ideas
*Investment focus is based on current market outlook and is subject to fund manager
discretion. Investors are advised to refer SID for investment strategy of the scheme
DEBT
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Stocks: Nifty 50 TRI Index, Bonds: Crisil Composite Bond Fund Index;. Source: Axis Internal Analysis. Past performance may or may not be sustained in future. Index values are normalized to 100. Data Period: 1st April 2002 – 29th Mar 2019.
Simulated index performance with risk measures Asset allocation targets risk adjusted returns
Current Portfolio Update – 30th April 19 Top 10 Stocks % of NAV
Tata Consultancy Services Limited 6.7%
HDFC Bank Limited 6.5%
Kotak Mahindra Bank Limited 5.9%
Bajaj Finance Limited 4.5%
Housing Development Finance Corporation
Limited 4.1%
ICICI Bank Limited 3.9%
Reliance Industries Limited 3.3%
Infosys Limited 2.4%
Bajaj Finserv Limited 2.3%
Container Corporation of India Limited 2.0%
Maruti Suzuki India Limited 2.0%
Allocation & maturity is based on the current market conditions and is subject to changes depending on the fund manager‟s view of the markets. ^The yield to maturity given above is based on the portfolio of funds as on date given above. This should not be taken as an indication of the returns that maybe generated by the fund and the securities bought by the fund may or may not be held till their respective maturities. The calculation is based on the invested corpus. Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s).
Debt
Average Maturity 1.4 years
Modified Duration 1.1 years
YTM^ 8.44%
Rating Mix (High Quality Portfolio)
AAA 77%
Below AAA 23%
Instrument wise (Corp Bond Portfolio)
Corporate Bonds 70%
Money Market Instruments 30%
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Key themes
Finance Information Technology
Structural growth story linked to low credit
outstanding, GDP growth and market share
gains for better quality players
Increasing per capita income leading to
improved standard of living and hence higher
discretionary spends
Consumer
Low penetration with lower interest rate
environment bodes well for the sector growth
Top stocks
HDFC Bank Limited Tata Consultancy Services Limited Avenue Supermarts Limited
Kotak Mahindra Bank Limited Infosys Limited Asian Paints Limited
Housing Development Finance Corporation Limited Titan Company Limited
ICICI Bank Limited ITC Limited
Portfolio biased towards large caps : 89% in Large Cap & 11% in Mid & Small cap
Please refer to SID for detailed asset allocation and Investment Strategy. Subject to provisions of SID, portfolio Allocation/Positioning will be based on the
prevailing market conditions and may change depending on the fund manager‟s view. Data as on 30th April 2019.
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Features at a Glance
CRISIL Hybrid 35+65 - Aggressive
Index
BENCHMARK TYPE
An open ended hybrid scheme
investing predominantly in equity
and equity related instruments
NAME
Axis Equity Hybrid Fund
Rs. 5,000 and in multiples of Re.
1/- thereafter
Minimum Additional Purchase
Amount of Rs.100 and in multiples
of Re. 1/- thereafter
MINIMUM APPLICATION AMOUNT EXIT LOAD
If redeemed/switched out on or before
12 months from the date of allotment:
- For 10% of investment: Nil
- For remaining investment: 1%
If redeemed/switched out after 12
months from the date of allotment: Nil
FUND MANAGER
Ashish Naik (Equity), R Sivakumar
(Debt)
Special Feature : Automatic Encashment Plan
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Past performance may or may not be sustained in future. Please refer to SID for detailed information on the above feature. *Tax paid is calculated @15% if redeemed before 1 year & @10% if redeemed after 1 year as the invested fund is assumed to be an equity fund Tax is calculated excluding cess and surcharge # Dividend distribution tax calculation for illustration purpose only, had the client withdrawn using a dividend option instead of AEP option ^ Dividend distribution tax is considered @11.648%, the rate applicable for individuals in an equity fund. Benefit of Indexation is not considered for calculation of capital gains amount in the above example. Dividend distribution tax calculation for illustration purpose only. The tax calculation assumes payout of the amount as dividend by Schemes. Declaration of dividend is subject to discretion of Trustee. As such there cannot be any assurance given on rate of dividend or on frequency for declaration of dividend. The information set out above is included for general information purpose only and does not constitute legal or tax advice. In view of the individual nature of the tax consequences, each investor is advised to consult his or her own tax consultant. Please consult your legal /tax advisor before making an investment
Illustration:
Investment Amount 10 lacs
Monthly Automatic Encashment Rs 7000
Tenor 24 months
XIRR (assumed) 6.5%
Total Withdrawal 1,68,000
*Total Capital Gains Tax Paid Rs 1,800
DIVIDEND OPTION AEP FACILITY
Amount of dividend is at fund manager‟s
discretion
Amount of monthly cashflow is pre decided
by the investor
Flexibility of dividend declaration is with fund
manager
Pre defined frequency of monthly withdrawal
Taxed at 10% (DDT) Capital gain tax proportionate to the amount
of withdrawal
This feature aims to provide a tax efficient
option for regular income
WHAT is AEP?
Investors can redeem a fixed percentage of
the investment value on a monthly basis
HOW does it work?
Investors looking for regular cash flow can
consider Automatic Encashment Plan as an
added feature under the scheme
WHY choose this option?
Product Label, Statutory Details and Risk Factors
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Data as on 30th April 2019.
Disclaimer: Past performance may or may not be sustained in the future. Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). 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. This document represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.