Introducing Axis Hybrid Fund – Series I: A blend of equity returns with stability

Axis Hybrid Fund – Series 1 attempts to generate income by investing in high quality fixed income securities along with capital appreciation through investments in equity & equity related instruments. The scheme looks to use the cushion of income earned through fixed income securities to bring down the downside risk from equity allocations.

The fixed income portion will follow a passive investment strategy. Investments will be made in fixed income securities which mature largely in line with the maturity of the scheme. The equity component will be allocated to equity & equity related instruments including exchange traded index options.

The hybrid fund is advantageous as it is able to recover all or part of the cost of the premium for purchase of options from the coupon received from the fixed income allocation. This strategy allows the portfolio to participate in equity upside while limiting downside risk.

At the end of 3 years, this investment strategy aims to provide relative stability to the investors portfolio alongwith returns in line with the equity markets.


Key Features

Type of Scheme : A 3 year close ended income scheme
Tenure : 3 years from the date of allotment including the date of allotment
Benchmark : Crisil MIP Blended Fund Index
Asset Allocation : Debt and money market instruments – 65% - 95% Equity and Equity Related instruments – 5% - 35%

Fund Manager : R. Sivakumar – Head – Fixed Income & Products Jinesh Gopani – Fund Manager, Equity

New Fund Offer (NFO) Period : 28 th July 2011 to 11 th August 2011
Minimum Application Amount : Rs. 5,000 and in multiples of Rs. 10 thereafter
Plans/ Options Offered :Growth, Dividend Payout Facility
Liquidity : No redemption / repurchase of units shall be allowed by the mutual fund, prior to the maturity of the scheme. The units of the scheme are proposed to be listed on the NSE to provide liquidity to investors post the NFO period.

The Product Note and the KIM cum Application Form for Axis Hybrid Fund - Series 1 are attached herewith for your perusal and further usage.