Generating capital appreciation by investing in a portfolio of equity or equity-linked securities while the secondary goal is to generate income by investing in debt and money market instruments. It aims to manage risk by actively allocating assets. However, there is no certainty or guarantee that the scheme’s investment target will be achieved.
Axis Mutual Fund launched its dynamic asset allocation scheme, the Axis Dynamic Equity Fund. Dynamic asset allocation funds invest in a market-based combination of equity, debt, and arbitrage. There is no fixed allocation of schemes, but they dynamically change portfolios based on specific stock market ratios.
According to the information document of the scheme, the net equity distribution can be between 30-100 percent. The Axis Dynamic Equity Fund will operate at two levels — the first being the model that defines the allocation of equity, and the second is the portfolio that is actively managed within that allocation. With the Axis Dynamic Equity Fund, we want to solve one of the most critical problems that have kept investors from facing equity – the worry of sharp swings in the market.
Axis Dynamic Equity Fund detail-
- Category: Hybrid: Dynamic Asset Allocation
- Turnover Ratio is: 427.00%
- Launch Date: 05-08-2017
- Asset Class: Mixed Asset
- Benchmark: NIFTY 50
- Expense Ratio: 2.03% As on (31-01-2020)
- Status: Open-Ended Schemes
- Minimum Investment: 5000.0
- Minimum Topup: 100.0
- Total Assets: 1,861.13 Cr as on (31-01-2020)
- Fund Size: ₹ 1861.13 Cr
- Category average turnover ratio is 631.19%
- Risk O meter: Moderately High
- For units with more than 10% of the investment, 1% will be paid for redemption within 365 days
Benefits of Axis Dynamic Equity Fund
- Investors do not need to time the market.
- The rational approach through dynamic equity exposure adjustment.
- It protects from rising downs on the draw.
- Equity factor from various market variables removes the human subject when assessing the distribution of inputs.
- Minimum SIP amount starting from Rs.1,000 / –
Tax Investment benefits in this fund
- Long Term Capital Gain (LTCG) Tax @ 10 percent (plus surcharge, if applicable, and cess) without holding indexing units for more than 12 months.
- Short-term capital gains (STCG) tax @ 15 percent (plus surcharge, if applicable, and cess), if units are held for less than 12 months.
- The investor does not pay any tax on the dividend, but a dividend distribution tax (DDT) is deducted at source @ 11.648% (10% + 12% surcharge + 4% health and education cess).
- Capital earnings made before 31 January 2018 are free from LTCG tax in respect of units purchased before 31 January 2018 and redeemed on or after 1 April 2018. DDT to be paid by mutual funds.
Dynamic Asset Allocation or Balanced Advantage
- 65.9% investment in Indian stocks
- 49.76% is in large-cap stocks
- 7.06% is in mid-cap stocks
- 1.42% in small-cap stocks
- 19.61% investment in Debt
- 4% in Government securities
- 48.34% in equity
- 15.61% in funds invested in very low-risk securities
- 32.05% others