Axis Commodity Mutual Funds

Investment Objective

Axis Bank’s subsidiary Axis Mutual Fund was established in 2009. In addition to one share each in Axis AMC and Axis Mutual Fund Trustee Ltd., Schroder Singapore Holdings Private Limited (SSHPL) owns 25% of the total issued and paid-up equity share capital.

With more than 18 lakh active investor accounts and a presence in more than 75 locations, Axis MF is one of India’s fastest-growing AMCs.

Our investment philosophy at Axis Mutual Fund is based on time-tested growth and risk control tenets. There is more to managing money than simply wanting to accumulate wealth. Along with managing money, we also manage risks. The ethical mutual fund

Risks Involved in Axis Commodity Mutual Fund 

The risks of investing in an Axis commodities mutual fund are the same as the risks of investing in any other investment option: the value of the investment may drop, and it is vulnerable to external dangers that you may not be able to control. 

However, given the variety of options available, the correct combination of mutual funds can help you manage risk efficiently. If you are better informed and aware of the risks, you may perform better research on which funds are best for you and how to invest sensibly to reduce risks.

Return Potential of Axis Commodity Mutual Fund

The risk an investor takes usually results in returns. Regarding returns, Axis Commodity Mutual Fund outperformed both debt and mutual funds. In the past, these funds have generated an annual average rate of roughly 18%.

Fixed returns are not guaranteed, and the Axis Commodity Mutual Fund efficacy could fluctuate over time. A fund may have a higher return potential than a diverse investment group because of the increased risk. On the other hand, large-cap funds are recognised for generating consistent returns despite market changes. Consider diversifying the overall portfolio with a few small- and mid-cap funds before making any investments.

Who Should Invest in Axis Commodity Mutual Funds?

Axis Commodity Mutual Fund schemes may be used by business owners wanting long-term capital growth over a five-year or longer tenure. The value of the fund also fluctuates in reaction to market volatility. These funds are intended for investors with higher risk tolerance levels.

For long-term objectives like setting aside money for a child’s future, making retirement plans, or purchasing a home, Axis Commodity Mutual Fund‘s high return potential is ideal. To maximise the potential of equity investments, you must invest for a longer time, preferably 10–12 years. However, this can imply investing extra cash you have on hand but won’t want soon.

Things To Consider Before Investing in Axis Commodity Mutual Funds

Long-term investing requires a systematic, organised asset strategy. The economy’s stability is up to the people, yet a sizable part of them opt not to for various reasons. Investors frequently withdraw money abruptly due to emotion when prices vary, which results in more capital losses than gains. A long-term market rebound is often advantageous and might aid shareholders in accumulating long-term capital. Therefore, the current level of market volatility may be acceptable for buyers who use caution while managing their financial assets.

Long-term capital investment, however, necessitates developing and implementing an investment plan. With adequate financial preparation, any investment strategy is possible.

Tax on Axis Commodity Mutual Fund

According to Section 80C of the Income Tax Act, investors in specific tax-saving mutual funds provided by Axis Mutual Fund are eligible for tax benefits.