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Axis Mutual Fund launches ‘Axis Retirement Savings Fund’

Axis Retirement Savings Fund designed to help investors carry out long term retirement planning

Chandresh Nigam, MD & CEO and Ashwin Patni, Head of Products and Alternatives addressing a Press Conference for Axis Mutual Fund.

Jammu, November 26 | Axis Mutual Fund, one of the leading asset management companies, today announced the launch of its new fund – ‘Axis Retirement Savings Fund’, an open-ended retirement solution-oriented scheme having a lock-in of 5 years or till retirement age (whichever is earlier). The new fund offer (NFO) opens for subscription on November 29, 2019, to December 13, 2019.

Retirement planning is slowly emerging as a critical issue for the working-age population of the country as they face the prospect of living out a long post-retirement life with a lack of formal social security and changes to traditional family support structures. These issues are backed by findings from a market research study carried out by Axis AMC. The study reached out to people from different backgrounds and across different locations who have all voiced concerns on their readiness for retirement. People have a desire to remain self-sufficient during their retirement years even while they don’t want their retirement to lead to a change in their lifestyle.

With rising awareness of these challenges, there is a growing need for the right financial solution to help people out. The Axis Retirement Savings Fund has been uniquely designed to help investors in this endeavour with features such as different investment plans offering flexible risk profiles, strong fund management capabilities across asset classes, tax efficiency, flexibility in using the fund for post-retirement income as well as one of the feature offering life cover to long term SIP investors to encourage them to remain disciplined on their path.

Axis Retirement Savings Fund has a lock-in of 5 years or till retirement age (whichever is earlier). Keeping in mind the diverse investor risk profiles, the Fund offers three investment plans – An Aggressive Plan where equity exposure will range between 65-80%, A Dynamic Plan where equity exposure will be dynamically managed between 65-100% and a Conservative Plan where debt exposure will range between 40 – 80%. Having different options with different risk profiles is essential when offering a long term solution such as retirement fund. This is because investors’ risk profile changes based on their age and circumstance. For example, as investors approach their retirement age, their ability to take risk comes down and consequently they need a low-risk investment option. At the same time, a younger investor that has a long way to go to retirement can afford to take high risk and needs to be more focused on an investment option that focuses on wealth generation.

Iplus SIP Insurance

The fund offers a unique and innovative feature that aims to ensure that the investor’s long term planned investments don’t fall victim to the risk of the unknown. The iPlus SIP Insurance facility offers investors a complementary life cover that is equal to the remaining commitment of their long term SIPs. This feature will allow investors peace of mind as they make long term investment plans keeping in mind their family and dependents. The insurance will be provided by HDFC Life Insurance Company Limited.

Chandresh Kumar Nigam, MD & CEO, Axis AMC said, “Axis AMC has always focused on offering a responsible product basket that keeps at its core the needs and aspirations of our investors. Axis Retirement Savings Fund is our small step to help investors execute the most critical part of their financial plan. Further, we have designed this product keeping in mind the need to offer each investor the flexibility to navigate this journey in the manner that works best for them. Given Axis AMC’s investment philosophy that focuses on sustainable long term returns, we are confident that we can help investors reach a happy retirement”.

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