Skip to main content

Axis Children Gift Fund Review

 

Axis Mutual Fund came up with an NFO (new fund offer) named as Axis Children's Gift Fund. This fund came up with an emotional tag of Children's Gift. The offer will be available from 18th Nov to 2nd December, 2015.

 

Axis Children's Gift Fund

Well, in my view this fund is using the major emotional tag of any parents i.e "Children's Future" of "Child Plan". To authenticate the fund offering, Axis provided the below facts about the cost of raising a child.

  • Cost of school education has risen by 150% in last 10 years.
  • In the last 5 years, average annual private expenditure for general education has shot up by 175%.
  • In the last 5 years, Average rise in the fees of Top 3 IIMs has been around 242%.

I don't have any second thought or negating the cost of education. But whether this fund alone is enough to meet the goal? Let us see the features of this mutual fund product.

  1. Investments can be made only in the name of a minor (<18 yrs at the time of investment).
  2. Unit holder till attaining Majority shall be represented by his / her parent or legal guardian.
  3. Parents, guardian, grandparents or relative can invest in the name of minor kid.
  4. You have both Regular and Direct Funds (DEFAULT WILL BE DIRECT).
  5. This plan comes with lock and no lock in facilities. You can opt anyone. In case of lock-in,  investment will be locked-in till the kid is 18 years of age. Investment may be redeemed after kid is 18 years of age or 3 yrs, whichever is later.  In case of no lock-in, investment will not be locked-in till the kid is 18 years of age & can be redeemed at any point of time at NAV based prices subject to exit load.
  6. Exit loads are structured as-3% if exited within 1 year, 2% if exited after 1 year but before 2 years, 1% if exited after 2 years but before 3 years, No exit load after 3 years.
  7. Fund Options-Growth, Dividend (Dividend Payout and Reinvestment Facility-reinvestment option is available under No Lock-in sub-plan only).
  8. Asset allocation will be like 25% to 55% in Debt and money market instruments, 40% to 60% in Equity and Equity related instruments and 5% to 15% in Cash-Futures Arbitrage.
  9. Benchmark will be 50% CNX Nifty + 50% Crisil Composite Bond Fund Index.
  10. The full detail of the NFO will be available HERE.

Now let us review the fund from investors point of view-

 

# Why to invest in NFO when there are so many old funds which have a track record to judge?

# This is the typical equity mutual fund. But used the name as Children's Gift Fund. However, for your kid's education or marriage, you can invest in existing and consistent performed fund.

# Never be emotional with the products which claim to be meant for your kid's planning.

# This fund will have heavy exit loads if you planned to withdraw within 3 years. So if the fund is not performing well, you have to wait for at least 3 years to be out of it.

# I don't think it is necessary to provide two facilities like lock-in and no lock-in.

# This fund is treated as equity mutual fund. However, this fund not answers about how one must invest in debt category to manage debt:equity. Investing in equity fund alone is not a right strategy of investment. One must have debt category too.

# The only new point of what I saw is, this fund uses the arbitrage opportunity available in market to the extent of 5% to 15% of your portfolio.

# Notice the benchmark. It is 50% CNX Nifty and another 50% Crisil Composite Bond Fund Index. Therefore, if the fund claim to beating the benchmark, then it does not mean that it is beating NIFTY. Because, only 50% of the benchmark returns are linked to NIFTY.

# When the fund is meant for long term goal of kid's education, then why it is providing dividend payout option?

# In my view, it is nothing but a gimmick to utilize the emotions of parents for investment towards kid's education. Nothing new to offer.

-----------------------------------------------
Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

-----------------------------------------------

Popular posts from this blog

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...
Read more

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...
Read more

National Savings Certificate

National Savings Certificate Here's everything you need to know about the 5-year savings scheme offered by the Government This is a 5-year small savings scheme of the government. From 1 July 2016, a National Savings Certificate (NSC) can be held in the electronic mode too. Physical pre-printed NSC certificates have been discontinued and replaced with Public Provident Fund-like passbooks. What's on offer The minimum amount you can invest in them is Rs100 and there is no upper limit. Under this scheme, all deposits up to Rs1.5 lakh qualify for deduction under section 80C of the Income-tax Act, 1961. The interest earned is taxable. You can invest in multiples of Rs 100. These certificates can be owned individually, jointly and also on behalf of minors. The interest rates for all small savings schemes are released on a quarterly basis. The effective rate for NSC from 1 October to 31 December is 8%. The interest is calculated on an annual compounding basis and is given along w...
Read more

Mutual Fund Review: HDFC Index Sensex Plus

  In terms of size, HDFC Index Sensex Plus may be one of the smallest offerings from the HDFC stable. But that has not dampened its show, which has beaten the Sensex by a mile in overall returns   HDFC Index Sensex Plus is a passively managed diversified equity scheme with Sensex as its benchmark index. The fund also invests a small proportion of its equity portfolio in non-Sensex scrips. The scheme cannot boast of an impressive size and is one of the smallest in the HDFC basket with assets under management (AUM) of less than 60 crore. PERFORMANCE: Being passively managed and portfolio aligned to that of the benchmark, the performance of the index fund is expected to follow that of the benchmark and in this respect, it has not disappointed investors. Since its launch in July 2002, the fund has outperformed Sensex in overall returns by good margins.    While every 1,000 invested in HDFC Index Sensex Plus in July 2002 is worth 6,130 now, a similar amount invested in Sensex then wo...
Read more

Different types of Mutual Funds

You may not be comfortable investing in the stock market. It might not seem like your cup of tea. But you can start by investing in Mutual Funds. Many first-time investors invest in Mutual Funds. This is because they do not know how to invest in individual securities. Basic information on Mutual Funds People invest their money in stocks, bonds, and other securities through Mutual Funds. Each Fund has different schemes with specific objectives. Professional Fund Managers look after these schemes. Your Fund Manager could help you invest in a scheme that suits your financial goal. Functioning of Mutual Funds You could make money through Mutual Funds in different ways. A single Mutual Fund could hold many different stocks, bonds, and debentures. This minimizes the risk by spreading out your investment. You could earn dividends from stocks and interest from bonds. You could also earn capital by selling securities when their price increases. Usually, you could choose to sell your share any t...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now