Axis MF to raise Rs 800-1,000 crore in retirement scheme NFO

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Published: November 27, 2019 1:15:36 AM

The asset management company (AMC) has tied up with HDFC Life Insurance Company to offer a group insurance cover to investors registering for a systematic investment plan (SIP) into the retirement fund.

mutual fund, axis mutual fundThe aggressive plan will have the largest component – 80% – being invested into equities.

Axis Mutual Fund on Tuesday said it hopes to raise between Rs 800 crore and Rs 1,000 crore through the new fund offer (NFO) for its retirement savings fund, which will be open for subscription from November 29 to December 13.

The fund scheme will be managed by Jinesh Gopani, R Sivakumar and Hitesh Das. It has three main product offerings – the aggressive plan, the dynamic plan and the conservative plan, each of which will invest in debt and equity assets in different proportions. The aggressive plan will have the largest component – 80% – being invested into equities. The aggressive plan will be benchmarked against the Nifty 50 Hybrid Composite Debt 70:30 Index, the dynamic plan will focus on the Nifty 50 Composite Hybrid Debt 65:35 Index and the conservative plan will focus on the Nifty 50 Hybrid Short Duration Debt 25:75 Index.

The asset management company (AMC) has tied up with HDFC Life Insurance Company to offer a group insurance cover to investors registering for a systematic investment plan (SIP) into the retirement fund. The premium will be borne by Axis AMC. Only investors aged between 18 and 51 will be eligible to avail the life cover under the scheme and their SIP must be for a period of at least three years.

The open-ended fund has a lock in period of five years. After paying 12 installments through the systematic investment plan, the insurance cover will get activated. So, if the investor is unable to pay their installments because of their demise, Axis will pay for the rest of the installments for the remaining period of the SIP.

Chandresh Nigam, MD and CEO, Axis Mutual Fund, said that the scheme is targeted at helping investors plan for a crucial financial need.

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