Axis Mutual Fund has raised over ₹600 crore from the Axis Fixed Term Plan Series 118 (100 Days). The fund closed for subscription on December 4. Benchmarked against the CRISIL Ultra Short Term Debt Index, it is a close-ended debt scheme with a moderate interest rate risk and moderate credit risk. The current yield curve, spreads on high-quality money market instruments and the prevailing market sentiments offer an ideal opportunity for fixed income investors looking for short-term parking solutions.
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The fund manager allocates assets of the schemes between various fixed income securities (which mature on or before the maturity of the scheme) with an endeavour to achieve optimal risk-adjusted returns. To enable investors to make informed decisions regarding the quality of securities and risk associated, FTPs disclose instruments in which they propose to invest under the intended allocation tab.
Opportunities
B Gopkumar, Managing Director, Axis AMC, said the strong response received by the fund reflects the opportunities currently available in the money market space. Fixed maturity products aim to provide a degree of stability to investors as they head to March quarter, often a volatile period for debt markets.
Several events like the upcoming US Fed announcement, advance tax season and the union budget for 2024 are likely to keep rates volatile over the next 3 months, he said.