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

Atal Pension Yojana contribution Tax Benefit for spouse

Contributions to Atal Pension Yojana (APY) are eligible for the same tax benefits as the NPS. This means that the contributions can be claimed under Section 80CCD (1B). The current limit for Section 80CCD (1B) is   Rs   50,000, over and above the   Rs   1.5 lakh limit under Section 80C. Section 80 CCD (1) is a different one, meant to cover employers' contribution towards NPS . You cannot get tax benefit by investing in the name of your spouse under Section 80 CCD . ------------------------------ ----------------- 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 Saver 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. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. ...
Read more

Mutual Fund Exit Load Changes

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 Mutual Fund Exit Load Changes AMCs don't communicate about any change in exit load directly with investors, but do update on their website   The exit load applicable to your investments is the load which existed at the time when you invested in the particular fund. Any subsequent changes in the exit load will not be applicable to your investments.   However, Asset Management Companies ( AMCs ) periodically publish addendums in the newspapers, which state any change in exit loads of specific schemes managed by them. Such changes are also posted on their websites. However, a direct communication to an investor is not made, considering the costs involved in doing so. In their own interests, investors should not only track the performance of the funds they i...
Read more

Birla Sun Life Mutual Fund Launches Birla Sun Life NIFTY ETF

Birla Sun Life has launched a new fund namely, Birla Sun Life Nifty ETF, an open ended exchange traded fund. The new fund will be open for subscription from 4th July to 18th July 2011, at an offer price of Rs 10 per unit. The investment objective of the scheme is to generate returns that closely correspond to the total returns of securities as represented by S&P CNX Nifty, subject to tracking errors. No exit load will be charged under the scheme. The performance of the scheme will be benchmarked against S&P CNX Nifty and will be managed by Satyabrata Mohanty.   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   1) DSP BlackRock Mutual Funds: http://prajnacapital.blogspot.com/2011/05/buying-dsp-blackrock-mutual-funds.html   2) Reliance Mutual Funds: http://prajnacapital.blogspot.com/2011/06/buying-reliance-mutual-funds-online.html   3) Birla Sunlife Mutual Funds: http://prajnacapital.blogspot.com/2011/...
Read more

Short-Term Bond Funds

These are schemes that invest in fixed income instruments of short durations. Short-term bond funds with less than one year duration are good investment options provided you have a one-year investment horizon. Lower average maturity of the fund ensures that the fund NAV is not hit much when short-term interest rates move up. We expect the RBI to hike the policy rates by 50 to 75 basis points in this calendar year. That makes it a bit tricky for short-term bond fund investors. Check the average maturity and exit load before you invest in a short-term bond fund. As a rule of thumb, the average maturity should be less than your investment time frame. Some funds do charge an exit load if you log out early. To avoid such a cut in the returns earned, it is better to check at what threshold of time the fund charges an exit load. The funds have a wide range of 'exit load' thresholds. Some charge an exit load if you were to redeem units within 90 days, while there are some that let ...
Read more

Short-Term Investment Options in Mutual Funds

Mutual funds offer liquid funds and ultra short term funds in the debt category, which are suitable for short investment periods. Ultra short-term funds were earlier known as liquid plus funds. Liquid funds invest in money market instruments with a maturity of 91 days or less. However, there are no such restrictions for ultra short-term funds. Who should invest in these? These are open-ended schemes. Investors with a short investment horizon or with surplus cash and low risk appetite should look at these. These could include corporate as well as retail investors. Those interested in staying invested for less than 15 days can opt for liquid funds. Retail investors who want to remain invested for two-four months, can look at ultra short-term funds. The short duration for both liquid and ultra short-term funds shields them from any interest rate volatility.   What kind of returns do they offer? In terms of an investment period less than 15 days, these funds are comparable to a ba...
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