Diversify your debt portfolio with Axis Liquid Fund

If you are good at financial planning you know that diversification is the key to successful investing. There are plenty of investment schemes to choose from. However, whether you should invest your money in conservative or non-traditional investment avenues will totally depend on your financial goals. Investors are often confused on whether they should invest for the short term or for the long term. Well they should understand if they seek long term capital appreciation, then they need to have a long term investment horizon as well.

Investors have to make sure that their investment horizon, risk appetite as well as investment objective all align with the scheme that they are planning to invest in. A risk appetite is nothing but the investor’s capacity to bear a certain degree of risk with their finances so that they are able to give themselves an opportunity of earning capital appreciation in the long run. Every scheme in the market carries a different risk profile.

For example the risk profile of a large cap mutual fund scheme is bound to differ from that of an overnight mutual fund scheme.

Investors are expected to determine their risk appetite before investing their hard earned money in any type of scheme. If you are someone who has a short term goal, or are looking to park your money somewhere rather than letting it sit idle you can consider investing in a liquid mutual fund. But before we get there, first let us understand how mutual funds work.

Mutual funds are a pool of professionally managed funds where the fund manager buys/sells securities through an investment strategy that aims to help the scheme achieve its investment objective. Fund houses usually collect money from investors sharing a common investment objective and invest this pool of funds across the Indian and foreign economy. The money is invested depending on the nature of the scheme. For example, an equity fund predominantly invests in equity and equity related instruments. On the other hand a debt fund invests in fixed income securities or debt related instruments like corporate securities, government bonds, call money, treasury bills, debentures, etc. An ETF funds tracks the performance of its underlying index.

Mutual fund investors are allotted units in quantum with the investment amount and depending on the fund’s current net asset value (NAV).

Axis Liquid Fund is an open ended liquid scheme. The investment objective of this scheme is to provide a high level of liquidity with reasonable returns commensurating with low risk through a portfolio of money market and debt securities. However, there can be no assurance that the investment objective of the Scheme will be achieved.

Benefits of investing in Axis Liquid Fund

• Axis Liquid Fund invests primarily in money market instruments such as certificate of deposits, treasury bills, commercial papers etc.
• Axis Liquid Fund is highly liquid in nature and offers low risk investment option for investors
• Axis Liquid Fund has an instant redemption feature to investor’s with Resident Indian Individual (RI) Status that allows you to redeem your money instantly with a simple online request and the money is credited in the account in few minutes
• Investors can redeem up to 90% of current value of available units or maximum of Rs. 50,000 per day, whichever is lower
• Instant redemption facility is available 24/7 for resident Indian individual investors

Why should one consider investing in Axis Liquid Fund?

• Provides a high level of liquidity commensurate with low risk through a portfolio of money market and debt securities
• It carries low risk due to the nature of underlying instruments which makes it comparatively safe·

If you are looking to diversify your mutual fund portfolio, you can do so using Axis Liquid Fund.

Axis Liquid Fund
An open ended liquid scheme

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.