Short-term income-generating fund: Axis mutual fund launches NFO of a fixed-term plan of 91 days

Axis Mutual Fund has launched a new close-ended debt scheme named Axis Fixed Term Plan – Series 120 (91 Days). The scheme will invest in a portfolio of debt and money market instruments that mature on or before the scheme’s maturity date. The minimum investment amount is Rs 5,000 and the scheme will be open for subscription from January 18, 2023, to January 23, 2023.

The Scheme aims to generate returns by investing in a portfolio of debt and money market instruments that mature before or on the Scheme’s maturity date. Tenure of the Scheme is 91 days from the date of allotment (including the date of allotment.) The Units of the Scheme cannot be redeemed by the Unit holder directly with the Fund until the Maturity Date. This is a close-ended debt scheme, with a Moderate Interest Rate Risk and Moderate Credit Risk.

The Axis Fixed-Term Plan will avoid the aviation, gems and jewellery sectors, as mentioned in the scheme document. The benchmark used for this will be the CRISIL Liquid Debt Index.

Asset Allocation

The scheme has a simple asset allocation consisting only of debt and money market instruments, where the risk profile will be kept low. The scheme can invest in securitized debt up to 40% of the debt portfolio and will not invest in foreign securitized debt.

The scheme invests in instruments like Certificate of Deposit (CD), Commercial Paper (CP), Treasury Bills (T-Bills), Commercial Usage Bills, Repos, Non-Convertible Debentures and Bonds, non-convertible parts of convertible debt securities, securitized assets, Pass-Through Certificates (PTC), etc.

Fund Manager details 

Sachin Jain
Age- 36 Years
PGDM, B.Tech
Total number of years of experience: 10 years

Peer Comparison 

Historical Returns 

Currently, there is no such perfect comparable scheme for Axis Fixed Term Plan – Series 120 (91 Days). The tenure for other plans is higher. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.