Axis Mutual Fund target about 300,000 investors for its newly launched new fund offer (NFO) - Children's Gift Fund. The fund house aims to raise around Rs 500-700 crore from this NFO.

The fund would endeavour to generate income by investing in debt & money market instruments along with long-term capital appreciation through investments in equity & equity related instruments.

Ashwin Patni, Fund Manager and Head - Products at Axis Mutual Fund, "We expect around 300,000 investors by the end of the fiscal 2015-16 for the fund. It aims to focus on long-term investment and endeavours to help in saving for child’s needs as he/she grows up."

"We expect to raise around Rs 500 crore during the NFO, but overall we believe to reach Rs 1,500 crore by end of the fiscal through 300,000 consumers," he added.

The fund will allow only minors to hold units and would be represented by his or her parent or legal guardian till attaining majority status. Also, there’s a unique provision of ‘Donor’ which allows grandparents or any close relative to gift this fund to minor investor without minimum cap on the investment limit.

Axis Children’s Gift Fund would have almost equal allocation to equity and fixed income instruments and hence a customized benchmark, 50 per cent Nifty 50 + 50 per cent Crisil Composite Bond Fund Index has been created to compare its performance.

"On average similar products in the industry would yield returns in the range of 10-12 per cent. But as an AMC we can't assure returns," said Patni.

Related Topics