Axis Children's Gift Funds is an open ended balanced scheme with an objective to generate returns through investing in income funds along with long-term capital appreciation by investing in equity and equity related instruments.
At the time of investing the child should be less than 18 years of age. Investors such as parents, step-parents, grandparents, relatives including NRI or HUF are eligible for the investment.
- There are two options available - direct and regular
- Sub-plan options are lock-in or no-lock in facility
- Options are Growth and Dividend
Default plan will be Direct along with Sub-Plan as No Lock-in and option will be Growth.
The New Fund Offer is open from 18 November to 2 December 2015. The scheme reopens for continuous sale and repurchase on or before December 14, 2015.
Investment made by you will be locked in till the child is 18 years of age or 3 years from the date of investments. Investor can redeem only after the lock in without any exit load.
No Lock In
Investments can be redeemed any point at prevailing Net Asset Value (NAV) subject to exit load.
If the investment is redeemed within 1 year, 3 per cent exit load is applicable. One per cent is applicable if exited after 2 years but before 3 years. There will be no exit load if exited after 3 years.
Asset allocation details
Asset allocation will be around 25 per cent to 55 per cent in debt and money market instruments. Around 40 per cent to 60 per cent in equity and Equity related instruments and 5 per cent to 15 per cent in Arbitrage funds.
The tag line focuses on investments in the fund which can be used for a child's future be it education, marriage or just an investment for a rainy day.
The product is very much similar to any other equity related NFO. The only focus point here is investment in arbitrage funds, which benefits from the difference in spot price and future price.
Investors can consider this product for gifting purposes. However, one can also consider other equity funds with good record history.