Axis MF’s new Multi Asset Active FoF adds an element of dynamism and nimbleness to asset allocation in a tax efficient manner, in an effort to deliver superior risk adjusted returns to investors.
While its existing MAAF invests at least 65% in equity and the rest in debt and precious metals, this new fund has a wider range of allocations across assets and also across underlying funds.
Expect equity to range between 40% - 65% while it can go higher or lower if warranted by extreme valuations. Expect debt and precious metals to be in the 20-25% range each.
The fund will allocate 80% as its core holding and keep 20% for nimble tactical plays across all three asset classes and across different sectors and themes within equity.
The new FoF will invest dynamically across Axis MF’s range of equity and debt funds and where warranted, even in funds of other fund houses – which could be for allocations to narrow sectors where Axis MF does not have a dedicated sector fund.
This new FoF will be co-managed by the heads of equity and debt – Shreyas and Devang – signaling the importance of this new fund and the intent and confidence the fund house has in its ability to deliver superior investor outcomes.
Investors get more nimble asset allocation as well as style and manager diversity – both of which enable this proposition to be considered as a one-stop-solution – a feature that makes this relatively new category in the MF industry hugely attractive from a growth perspective.
Rohit firmly believes that if our industry has to grow from 5cr to 10cr unique investors, it is solutions like this that will drive the next leg of growth due to their ability to deliver inflation beating returns with relatively lower volatility.