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Axis Equity Hybrid Fund(An open ended hybrid scheme investing predominantly in equity and equity related instruments)
This product is suitable for investors who are seeking*:
Capital appreciation along with generation of income
over medium to long term
Investment in equity and equity related instruments as
well as debt and money market instruments
*Investors should consult their financial advisers if in
doubt about whether the product is suitable for them.
Best way is driving at moderate/economy speed with
controlled use of throttle
What gives best mileage
in a two wheeler
vehicle?
Commuter motorcycles usually come with an economy
indicator or a ‘green zone’ painted on speedometer to display
sweet spot
2
Making the ride frugal!
MODERATE SPEED
Consumes less fuel
Offers optimum grunt
LESS THROTTLE MAXIMUM MILEAGE
Increases fuel efficiencyReduces load on engine
Gives better control on the vehicle
3
Making the ride frugal!
EQUITY
Opportunity to capture growth
Potential of higher returns
FIXED INCOME RISK ADJUSTED RETURNS
Potential of higher return with relatively
lesser risk
Stability by being less volatile
Regular income generation
Minimum -2.6 2.4 1.1
Maximum 59.5 12.6 41.1
Average 17.3 6.9 14.5
Std Deviation 10.0 2.5 7.1
3 year performance (Rolling return - Apr 02 – Mar 19)
Risk Adjusted Return: 70% Equity + 30% Debt with monthly rebalancing. Equity: Nifty 50 TRI Index, Fixed Income: Crisil Composite Bond Fund Index; Data period: April 2002 – 31st Mar 2019. Source:
MFI, Axis Internal Analysis. Past performance may or may not be sustained in future. For illustration & explanation purpose only. Does not reflect performance of any scheme. All numbers are
annualized.4
Different ReactionsEvery asset has its unique benefit in a portfolio to achieve a common goal
RECESSION:
Low growth, low inflation, falling interest ratesUnderperform Outperform Neutral
RECOVERY:
Medium growth, stable inflation, stable interest ratesOutperform Neutral Neutral
GROWTH:
High growth, stable inflation, stable to rising interest ratesOutperform Neutral Neutral
OVERHEATING:
High growth, rising inflation, rising interest ratesNeutral Underperform Neutral
EQUITY DEBT CASH5
DIVERSIFIES AND
REDUCES RISK
TAILORED TO YOUR
RISK PROFILE
BETTER TAX
EFFICIENCY
OFFERS STABLE
RETURNS OVER THE
MEDIUM TERM
Solution: Asset AllocationAppropriate asset allocation gives confidence though ups and downs of the market
Key ingredient of successful investing
6
7
NORMAL INVESTOR SMART INVESTOR
MARKET TIMING Tends to react to every market movement,
thus highly exposed to uncertainty
Investment linked to the risk profile and not
current market levels
CHASING THE HOTTEST
TREND
Continuous portfolio churn restricts the
portfolio from long term benefits
Steady Allocation over time
CYCLES OF GREED AND
FEAR
Irrational investment decision Asset allocation allows investors to “Buy
low-Sell high”
Smart choice!Asset allocation helps avoid market traps
Lower correlation
among asset classesPeriodic Rebalancing
Reasonable downside
protection
Benefit from active
management
How does Asset
Allocation work to
benefit portfolios?
8
9
Equity: Nifty 50 Index, Debt: Crisil Composite Bond Fund Index; MFI, Axis Internal Analysis. Past performance may or may not be sustained in future. For illustration & explanation purpose only. Does not reflect performance of any scheme.
Lesser the correlation among assets, lower the riskLower correlation among assets improves diversification gains
Not all asset class will move in same direction at all
times.
If correlation is higher, sensitivity to market
movement rises. This can add to overall risk.
Lower correlation acts as hedge against each other and
hence reduces risk and optimizes return
DEBT EQUITY
Returns (CAGR)
Bull market
(2004 - 07)2.4% 48.6%
Bear market
(2008 - 09)18.6% -50.3%
10
Equity: Nifty 50 Index, Debt: Crisil Composite Bond Fund Index; MFI, Axis Internal Analysis. ^Effective risk: Standard deviation based on daily returns for the investment period. Investment Period: (Apr 02 – May 18). Effective allocation is the allocation at the end of the period (Mar 19)
Diminish the tendency for “portfolio drift,” and thuspotentially reduce their exposure to risk relative totheir target asset allocation
Lowers overall risk and optimizes returns relative totarget allocation
Rebalancing within the fund makes it cost & taxefficient for investors as compared to investors doingit at their end
Allocation at the
start of investment
Effective
allocationEffective Risk^
WITH
REBALANCING70 Equity + 30 Debt 70 Equity + 30 Debt
13%
WITHOUT
REBALANCING 70 Equity + 30 Debt 90 Equity + 10 Debt16%
Rebalancing benefitEffective risk management technique
SIMPLE INFOGRAPHIC SLIDEDownside protection through diversificationDownside protection aim to reduce the frequency and/or magnitude of capital losses, resulting from significant asset market declines
Aims to limit the impact of potential losses from market downturns
If the markets fall byIncrease needed to
recover
-10% 11%
-15% 18%
-20% 25%
-50% 100%
-80% 400%
Higher the fall, larger is the increase required to recover
Fixed Income: CRISIL Composite Bond Fund Index, Equity : Nifty 50 Index. Drawdown isthe peak-to-trough decline during a specific recorded period of an investment. Pastperformance may or may not be sustained in future. Drawdown is the percentagebetween the peak and the subsequent trough.
11
-60%
-50%
-40%
-30%
-20%
-10%
0%
Mar-03 Mar-05 Mar-07 Mar-09 Mar-11 Mar-13 Mar-15 Mar-17 Mar-19
Equity
Fixed Income
Fixed Income Funds
Conservative Hybrid
Equity Savings Funds
Dynamic Equity Allocation Funds
Axis Equity Hybrid Fund
Equity Funds
12
Indicative positioning on risk return estimates from strategy based indices. For illustrative purposes only
Axis Equity Hybrid FundProduct Positioning : Balanced Approach to Investing
13
Please refer the Scheme Information Document for detailed description on asset allocation and investment strategy
Scheme PropositionAn open ended hybrid scheme investing predominantly in equity and equity related instruments
Equity Allocation
65-80%
Debt Allocation
20-35%
Best of Both Worlds
Equity component will
follow a multi-cap bottom
up best ideas strategy
Debt component will follow
a tactical approach across
sovereign bonds and
corporate bonds
Risk return tradeoff is likely to be favorable over the
medium term
Good ideas can do better irrespective of its
sector/theme/size
Focus on fast growing sectors with bottom up stock
picking approach
Equity
Investment Approach
Large cap bias with up to 30% in midcaps*
*Investment focus is based on current market outlook and is subject to fund manager
discretion. Investors are advised to refer SID for investment strategy of the scheme
EQUITY
14
The portfolio duration and credit exposures will be
decided based on a thorough research
Flexibility to invest in the entire range of debt
instruments across credit/duration spectrum
Active duration management
Debt
Investment Approach
Invest in best ideas
*Investment focus is based on current market outlook and is subject to fund manager
discretion. Investors are advised to refer SID for investment strategy of the scheme
DEBT
15
16
Stocks: Nifty 50 TRI Index, Bonds: Crisil Composite Bond Fund Index;. Source: Axis Internal Analysis. Past performance may or may not be sustained in future. Index values are normalized to 100. Data Period: 1st April 2002 – 29th Mar 2019.
Simulated index performance with risk measuresAsset allocation targets risk adjusted returns
STOCKS BONDS70% STOCKS +
30% BONDS
Return 16.3% 7.0% 14.0%
Risk 18.4% 2.1% 12.9%
0.0
200.0
400.0
600.0
800.0
1000.0
1200.0
1400.0
Mar-03 Mar-05 Mar-07 Mar-09 Mar-11 Mar-13 Mar-15 Mar-17 Mar-19
Stocks Bonds Equity Hybrid Index
17
Current Portfolio Update – 28th June 19Top 10 Stocks % of NAV
HDFC Bank Ltd 6.79%
Tata Consultancy Services Ltd 6.59%
Kotak Mahindra Bank Ltd 6.28%
Bajaj Finance Ltd 5.32%
Housing Development Finance Corporation Ltd 4.46%
ICICI Bank Ltd 4.15%
Reliance Industries Ltd 3.63%
Avenue Supermarts Limited 3.01%
Infosys Ltd 2.81%
Bajaj Finserv Ltd 2.60%
HDFC Bank Ltd 6.79%
Allocation & maturity is based on the current market conditions and is subject to changes depending on the fund manager’s view of the markets. ^The yield to maturity given above is based onthe portfolio of funds as on date given above. This should not be taken as an indication of the returns that maybe generated by the fund and the securities bought by the fund may or may not beheld till their respective maturities. The calculation is based on the invested corpus. Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the portfolio of theScheme(s) and should not be construed as recommendation. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time. Investors are requested to consulttheir financial, tax and other advisors before taking any investment decision(s).
Debt
Average Maturity 1.8 years
Modified Duration 1.5 years
YTM^ 7.88%
Rating Mix (High Quality Portfolio)
AAA 77%
Below AAA 23%
Instrument wise (Corp Bond Portfolio)
Corporate Bonds 78%
Money Market Instruments 22%
18
Key themes
Finance Information Technology
Structural growth story linked to low credit
outstanding, GDP growth and market share
gains for better quality players
Increasing per capita income leading to
improved standard of living and hence higher
discretionary spends
Consumer
Low penetration with lower interest rate
environment bodes well for the sector growth
Top stocks
HDFC Bank Limited Tata Consultancy Services Limited Avenue Supermarts Limited
Kotak Mahindra Bank Limited Infosys Limited Asian Paints Limited
Bajaj Finance Limited Reliance Industries Hindustan Unilever Limited
Housing Development Finance Corporation Limited Titan Company Limited
ICICI Bank Limited Pidilite Industries
Portfolio biased towards large caps : 90% in Large Cap & 10% in Mid & Small cap
Please refer to SID for detailed asset allocation and Investment Strategy. Subject to provisions of SID, portfolio Allocation/Positioning will be based on the
prevailing market conditions and may change depending on the fund manager’s view. Data as on 28th June 2019.
19
Features at a Glance
CRISIL Hybrid 35+65 - Aggressive
Index
BENCHMARKTYPE
An open ended hybrid scheme
investing predominantly in equity
and equity related instruments
NAME
Axis Equity Hybrid Fund
Rs. 5,000 and in multiples of Re.
1/- thereafter
Minimum Additional Purchase
Amount of Rs.100 and in multiples
of Re. 1/- thereafter
MINIMUM APPLICATION AMOUNTEXIT LOAD
If redeemed/switched out on or before
12 months from the date of allotment:
- For 10% of investment: Nil
- For remaining investment: 1%
If redeemed/switched out after 12
months from the date of allotment: Nil
FUND MANAGER
Ashish Naik (Equity), R Sivakumar
(Debt)
Special Feature : Automatic Encashment Plan
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Past performance may or may not be sustained in future. Please refer to SID for detailed information on the above feature. *Tax paid is calculated@15% if redeemed before 1 year & @10% if redeemed after 1 year as the invested fund is assumed to be an equity fund Tax is calculated excludingcess and surcharge # Dividend distribution tax calculation for illustration purpose only, had the client withdrawn using a dividend option instead of AEPoption ^ Dividend distribution tax is considered @11.648%, the rate applicable for individuals in an equity fund. Benefit of Indexation is not consideredfor calculation of capital gains amount in the above example. Dividend distribution tax calculation for illustration purpose only. The tax calculationassumes payout of the amount as dividend by Schemes. Declaration of dividend is subject to discretion of Trustee. As such there cannot be anyassurance given on rate of dividend or on frequency for declaration of dividend. The information set out above is included for general informationpurpose only and does not constitute legal or tax advice. In view of the individual nature of the tax consequences, each investor is advised to consulthis or her own tax consultant. Please consult your legal /tax advisor before making an investment
Illustration:
Investment Amount 10 lacs
Monthly Automatic Encashment Rs 7000
Tenor 24 months
XIRR (assumed) 6.5%
Total Withdrawal 1,68,000
*Total Capital Gains Tax Paid Rs 1,800
DIVIDEND OPTION AEP FACILITY
Amount of dividend is at fund manager’s
discretion
Amount of monthly cashflow is pre decided
by the investor
Flexibility of dividend declaration is with fund
manager
Pre defined frequency of monthly withdrawal
Taxed at 10% (DDT) Capital gain tax proportionate to the amount
of withdrawal
This feature aims to provide a tax efficient
option for regular income
WHAT is AEP?
Investors can redeem a fixed percentage of
the investment value on a monthly basis
HOW does it work?
Investors looking for regular cash flow can
consider Automatic Encashment Plan as an
added feature under the scheme
WHY choose this option?
Product Label, Statutory Details and Risk Factors
21
Data as on 28th June 2019.
Disclaimer: Past performance may or may not be sustained in the future. Sector(s) / Stock(s) / Issuer(s) mentioned above are for thepurpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may ormay not choose to hold the stock mentioned, from time to time. Investors are requested to consult their financial, tax and other advisorsbefore taking any investment decision(s). Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian TrustsAct, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager:Axis Asset Management Co. Ltd. (the AMC). Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resultingfrom the operation of the scheme. This document represents the views of Axis Asset Management Co. Ltd. and must not be taken as thebasis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management CompanyLimited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arise from the use of theinformation contained herein. No representation or warranty is made as to the accuracy, completeness or fairness of the information andopinions contained herein. The AMC reserves the right to make modifications and alterations to this statement as may be required fromtime to time. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Thank You