The scheme seeks to invest in a portfolio of debt securities and money market instruments in order to offer high level of liquidity along with reasonable returns corresponding to low risk investments.
- Benchmark: CRISIL Liquid Fund Index is the benchmark to measure the performance of the scheme. Most market participants use CRISIL Liquid Fund Index as a benchmark since it offers a realistic estimate through which the returns of a liquid fund can be tracked.
- Asset Size: As according to December 2016, the asset size of this scheme is Rs. 4,769 crores.
- Load Details:
- According to the latest SEBI circular issued, entry load is not applicable for this scheme.
- No Exit load is charged for this scheme
- Minimum Investment:
- A minimum of Rs. 1 crores is required to start an investment in Axis Liquidity Fund and in multiples of Re. 1 thereafter for Super Institutional Plan
- For institutional plan also, the minimum application amount starts from Rs. 1 crores and in multiples of Re. 1 thereafter
- For retail plan, the minimum application amount starts from Rs. 5,000 and in multiples of Re. 1 thereafter.
- For any additional purchase, Rs. 1 lakhs is the minimum requirement for any super institutional or institutional plan and in multiples of Re. 1 thereafter
- For retail plan, the minimum additional purchase amount starts from Rs. 1,000 and in multiples of Re. 1 thereafter
- Fund Manager: Mr. Devang Shah/ Mr. Aditya Pagaria
About the Fund Manager: Mr. Devang Shah joined the Axis Asset Management Company on October 16, 2012 and has been serving since then as senior Fund manager of fixed income. He has previously worked with ICICI Prudential Asset Management Company Limited and Deutsche Asset Management Pvt. Ltd.
- Mr. Aditya Pagaria is also the Fund Manager for fixed income at Axis Asset Management Company Ltd. He has previously worked with ICICI Prudential Asset Management Company Limited and has looked after NAV and fund accounting related functions.
- AMC: Axis Asset Management Company Ltd
- Ranking: Axis Liquid Fund has been ranked 3rd in the liquid category by CRISIL. The rank has remained unchanged since the last quarter which ended in December 2016.
- NAV Disclosure: The Net Asset Value (NAV) of the scheme is calculated on every calendar day. The NAV is disclosed at the end of every business day and the details of the portfolio will be disclosed by the AMC at least once in every 6 months. The updates about the NAV are both published on the daily newspaper and updated on the official website of the AMC.
- Asset Allocation: Under normal circumstances, the following would be the usual limits for investments-
- 50% - 100% assets would be invested in money market instruments which include CDs, CPs, cash, treasury bills, cash and Government securities having maturity or residual maturity of up to 91 days.
- The remaining 0% - 50% assets would be invested in debt instruments which include securitized debt and floating rate debt instruments. The maturity, residual maturity, average maturity and interest rate resets are allowed up to 91 days.
- These limits are indicative and may change according to market conditions and profit considerations.
- Money market instruments have a low risk profile while debt instruments have a low to medium risk profile.
- The cumulative allocation of the securitized debt cannot be more than 30% of the net assets. This does not include foreign securitized debt
- For the purpose of portfolio balancing and hedging, up to 50% of the net assets permitted from time to time
The following investment options can be used by this scheme for investment purpose:
- CBLO (Collateralized borrowing and Lending Obligations): A money market instrument which allows lending and borrowing against sovereign collateral security. The maturity of these instruments can range from 1 to 90 days and can also be extended to a year. Central Government securities such as T-bills qualify to be used as collateral to borrow through CBLO
- CD (Certificate of Deposit): Commercial banks and select financial institutions issue this negotiable money market instrument to raise short term resources. The maturity period for this fund ranges from 7 days to one year. In case of fls the maturity is from one year to 3 years.
- CP (Commercial Paper): It is a money market instrument which is both negotiable and unsecured and is issued in the form of a promissory note.
- T-Bills: These are the bills issued by government of India for meeting their short term borrowing requirements and have fixed maturity periods such as 14 days, 91 days, 182 days and 364 days.
- Floating rate debt instruments: These are debt instruments issued by central or state government, Public Sector Units or corporate whose interest rates are reset periodically.
- Non convertible debentures and bonds: These are instruments which are either issued or promoted by central or state government, statutory bodies, financial institutions or public and private sector banks and are usually used for short term or long term fund requirements.
*Statutory bodies may or may not bear guarantee from central or state government
- Repo: It stands for repurchase agreement where two or more parties agree for a sale or purchase of security now and in future in a mutually decided date and price.