The NFO period for Axis Triple Advantage Fund will open on 30th June and will close on 27th July 2010.Investors should note that the investment principles of this fund is to seek long terms capital appreciation and hence, as per the fund information, the investors are expected to stay invested for long.
The unique thing about this fund is that it is offering you a diversified investment opportunity, where your invested capital money will be split across into 3 and invested into the following in the mentioned proportion:
- Shares/Equity and related instruments - 30-40%
- Debt Instruments (Fixed Income Securities) - 30-40%
- Gold ETF's or Gold Exchange Traded Funds - 20-30%
Overall, this Axis Triple Advantage Fund seems to be offering a good mix of 3 variety of products. The proportion of allocation also seems to be good enough.The fund is ideal for investors who want to invest in all three asset claasses and don't want to keep the vigil themselves but want to pass all the headache to the fund manager.
Throwing caution to the wind,it's not as easy as it seems.Let's take a simple illustration,supposingly you invest 10k in this fund.The fund managers buy equity worth 3500, debt worth 3500 and gold worth 3000. After 5 years, the returns from equity are down by 30%, returns from debt is up by 10%, and returns from gold are up by 15%. Equity portion will then stand at 2500, Debt at 3850 and Gold at 3450. So your net value will be 9,800 - i.e. less than your invested 10K.Also, the more different instruments one invests in, the more brokerage charges and commission is to be paid. That adds to the cost and reduces the profit and returns. Investors should keep these things in mind while making investments in any funds or any financial products.
One has to analyze,whether he want to pass on all the headache to a professional or want to invest in these three asset classes on his own.For the latter option,one has to take the buy sell decesions all by himself and time it responsibly.
It's not a good idea to pass all the headache to the fund manager,keep some bit at your end.In simple parlance,opting for this MF is not a bad idea but one has to evaluate the performance on a timely basis.
