Kindly let me know your expert opinion on Axis Hybrid Fund Series as a whole and especially Series-26. I was told by the Senior manager of Axis bank, Kollam city, that it is a very good and safe investment option. I was told that previous issues paid an interest of 16% and I could expect the same from this series also. I am a senior citizen, so is my wife.
- Varghese Kurian
Axis Hybrid Fund - Series 26 is a debt-oriented conservative hybrid fund. It is also a close-ended scheme with a lock-in period of 1,276 days. The fund invests predominantly (70-95 per cent) in high quality debt instruments and the rest (5-30 per cent) in equity and equity-related instruments. The debt part of the investment would try to protect the capital and the equity investment is expected to add extra returns. It is not possible to predict how much returns you would get as the returns would be determined by the performance of debt and stock markets. However, the asset allocation of debt and equity has the potential to offer slightly better returns than bank deposits. The earlier series (5 to 7) of Axis Hybrid Fund has managed to offer around 9.50-11.96 per cent returns in the last two years.
Your investment will also qualify for long term capital gains tax and it will help you save taxes, especially if you are in the highest tax bracket. Capital gains on investments in debt funds held over three years are taxed at 20 per cent with indexation benefit.
This article was originally published on October 09, 2015.
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