As written on 4th Feb 2021
Investing in mutual funds can be tough if you are a new investor. Choosing a scheme with a proven track record, good fund management, and owned by a reputed AMC might be challenging. This is why most financial advisors request individuals to first determine their risk appetite, investment horizon, investment objective, and their financial goals before investing. Goal-based investing is known to churn positive results because when you invest keeping in mind a defined set of goals, you are less likely to give up till your investment objective is achieved.
Debt schemes are an alternate option for those seeking capital appreciation with less volatile investments than equity mutual funds. They are also considered by investors who want to diversify their equity-heavy mutual fund portfolio. Debt funds also seem to work in favor of investors switching from conservative schemes and are looking for low volatile investments. Having said that, debt funds also carry investment risk like interest risk and credit rate risk. These are open ended mutual fund schemes that invest in debt instruments and fixed income securities for income generation.
If investing in debt schemes is on your mind, you can consider investing in Axis All Seasons Debt Fund of Funds. Axis All Seasons Debt Fund of Funds is an open ended fund of funds scheme investing in debt oriented mutual fund schemes.
The investment objective of Axis All Seasons Debt Fund of Funds is to generate optimal returns over medium term by investing primarily in debt oriented mutual fund schemes. However, there can be no assurance that the investment objective of the scheme will be achieved.
A direct mutual fund scheme can be brought directly from the fund house or AMC managing that particular fund. In a direct mutual fund plan, there is no involvement of a third party aggregator. The transaction occurs between the investor and the AMC. This is primarily why the expense ratio of owning a direct plan is generally on the lower end. On the other hand, a regular mutual fund plan can be brought through a broker, a mutual fund agent or any other aggregator. These third party entities charge a commission to the AMC for selling their funds. In response, the AMC recovers these charges by levying a higher expense ratio on regular plans. Investors must decide whether they want to go with a regular plan or a direct plan before investing.
SIP and lump sum are two different investment methods available for investors looking to target their medium term goals with a short term debt fund like Axis All Seasons Debt Fund of Funds. Lump sum investment are made right at the beginning of the investment cycle. Investors are allotted units in quantum with the investment amount and depending on the fund’s existing NAV (net asset value). A Systematic Investment Plan (SIP) on the other hand is an easy and convenient way to invest in any mutual fund scheme. All an investor has to do is complete their KYC documentation and all the necessary formalities with their bank. Once you link your bank account to your mutual fund, every month on a fixed date, a predetermined amount is debited from your savings account and electronically transferred to the fund. Investors do not have to personally visit the fund house to make their monthly SIP investments. SIP may be an ideal way to allow your money the scope of building your mutual fund corpus. SIP gives you the scope to strengthen your financial background gradually by saving a fixed amount every month and investing it via SIP. SIP is also known to make the most of several investment techniques like rupee cost averaging and power of compounding.
If you are new to mutual funds, please consult a financial advisor before investing in Axis All Seasons Debt Fund of Funds.
Axis All Seasons Debt Fund of Funds
An open ended fund of funds scheme investing in debt oriented mutual fund schemes
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.