Re-think Investing

Introducing
Axis Long Duration Fund NFO Opens: December 7 th, 2022
(An open ended debt scheme investing in instruments such that the Macaulay duration of the
portfolio is greater than 7 years. A Relatively High interest rate risk and Relatively Low Credit Risk) NFO Closes: December 21 st, 2022

About Axis Long Duration Fund

Overview Current Fund Positioning

Axis Long Duration Fund is an open ended debt scheme • The fund aims to Invest in long dated government
investing in instruments such that the Macaulay securities with 30+ years horizon
Duration of the portfolio is greater than 7 years. • No Credit risk
• Ideal for investors looking to create a long term
income solution through investment in high quality
debt instruments

Ideal Investment High quality portfolio Fund aims at having a

Horizon: 10+ years of SOV instruments buy and hold approach

For detailed Investment strategy please refer SID/KIM of the Scheme available on the website. The above mentioned investment strategy is based on prevailing market
condition and subject to change within the limits of the SID basis fund managers views.

Fund Snapshot

Minimum Investment Exit Load Maturity Date

`5,000 and in NIL Not Applicable
multiples of `1/-
thereafter

Scheme Name Fund Manager

Portfolio Mix Benchmark
Axis Long Duration Fund Devang Shah,
Long Dated Nifty Long Duration
Kaustubh Sule &
Government Debt Index A-III
Hardik Shah
securities
 Creating your ‘second’ income stream

An Illustration
Mr X, a working professional, aged 40. He needs to create a corpus which can be used to create an income stream post retirement, at
age 50. He estimates his monthly expenses after inflation will be ` 1 lakh per month. He anticipates his life expectancy to be 70 years
How can he achieve this goal?
Let us assume prevailing interest rates are 7% for a typical G-Sec long bond portfolio.
Mr X believes he can allocate ` 1 lakh per month.

Start an investment pool Accumulating & growing the corpus

• Regular monthly investments of Rs 1 lakh in a long • Corpus keeps growing as the fund collects coupons over
dated debt portfolio the investing period
• Long dated securities (30 year+) are held in the fund • The fund will be subject to relatively lower market risks
while coupons are reinvested at prevailing market rates since the fund manager follows a buy and hold approach

Leftover corpus for legacy planning Annuity* like withdrawal

• After 20 years of monthly withdrawals^ the remaining • Withdraw^ post retirement to meet expenses.
corpus continues to grow • Effectively, due to the power of compounding, the
• This corpus can then be used for legacy planning periodic withdrawals will equate approximately to
annual income earned on the corpus over the
withdrawal period

Past performance may or may not be sustained in the future. The above calculations are only for illustration purposes and are subject to market risks based on corpus at the
end of the investment cycle, actual market returns and periodicity of cash flows. Tax implications are not considered in this illustration. These are not to be considered for
investment advice or guarantee of returns. Investors are advised to consult their Investment / tax advisors. ^Withdrawals to meet expenses / Remaining corpus are function of
accumulated corpus, market returns and amounts withdrawn by investor.
*The annuity investment products when compared to mutual fund scheme may offer additional features like insurance or return guarantees which will not be offered by Axis
Mutual Fund/Axis Asset Management Company limited in this product.

Understanding the math

Investment cycle and the power of compounding

Understanding the structure

• Using the previous illustration, Mr X invests regularly over the accumulation phase (Age 40 to Age 50)
• At 7% money doubles ~every 10 years. Hence at age 50, the money invested 10 years ago doubles
• At Age 50, when Mr X decides to start withdrawing from this corpus he is in effect withdrawing only annual incomes.
• At this rate of withdrawal, Mr X can withdraw Rs 1 lakh every month for 20 years and still be left with his original corpus at the
end of the investment cycle

30 200
150
20
(in Rs lakhs)

(in Rs lakhs)

100
Cash flow

Cash flow

10
50
0 0
r1

11

21
8

10

18

20

28

30
r2

12

22
r3

13

23
4

14

16

19

24

26

29
5

15

25
7

17

27
ar
ar

ar

ar
ar

ar
a

ar

ar
ar

ar

ar

ar

ar
ar

ar
ar

ar
ar

ar

ar

ar

ar

ar
ar

ar
ar

ar
Ye

Ye
Ye

Ye

Ye

Ye

Ye
Ye

Ye

Ye

Ye
Ye

Ye

Ye

Ye

Ye
Ye

Ye
Ye

Ye
Ye

Ye

Ye

Ye

Ye

Ye
Ye

Ye
Ye

Ye

Investment Withdrawal Lumpsum Available

Past performance may or may not be sustained in the future. The above calculations are only for illustration purposes and are subject to market risks based on corpus at the
end of the investment cycle, actual market returns and periodicity of cash flows. Tax implications are not considered in this illustration. These are not to be considered for
investment advice or guarantee of returns. Investors are advised to consult their Investment / tax advisors.
*The annuity investment products when compared to mutual fund scheme may offer additional features like insurance or return guarantees which will not be offered by Axis
Mutual Fund/Axis Asset Management Company limited in this product.
 Tax Efficiency through Mfs

Power of Indexation

What is indexation? Illustration Debt Mutual Fund

• Adjustment of the value of investment to the Investment Amount ` 1,00,000

prevailing inflation to calculate capital gains tax Assumed YTM 7%
• Debt Mutual Funds can benefit by indexation as Investment for (Years) 20
investment amount is adjusted as per Cost
Inflation Index (CII) Value @ End of Investment Period ` 3,86,968

• Investors can generate more tax efficient returns Total Income ` 2,86,968
due to inflation adjusted investments Indexed Cost@ ` 2,57,508
Net Income post Indexation `1,29,460
Tax Slab (LTCG)** 20%
Tax on Interest Income ` 25,892
Post Tax Income ` 2,61,076
Post Tax Income Per annum 6.63%

Data as on 30th November 2022. Past performance may or may not be sustained in the future. @ assuming investments are made before 31st March 2023 and held beyond
April 1st 2042. ** Tax as per LTCG income tax provisions exclusive of applicable surcharges & cess. This computation is for resident individual investors. *Cost inflation index
assumed at 5% p.a. Fund related expenses ignored for this illustration. The above calculations are only for illustration purposes. The information given on Investment and rate
of return are for the purpose on explaining the illustration only. These are not to be considered for investment advice or guarantee of returns. Investors are advised to consult
their Investment / tax advisors. To be used for illustrative purposes only.

Can debt portfolios beat inflation? Summary

Long bonds have historically offer market linked Fixed Income can also create long term wealth
returns above inflation Investments in debt markets generally have r
educed volatility over longer tenures in
comparison to equity markets
Long bond yields have remained largely stable & Building a tax efficient annuity
above inflation levels over the last 20 years Long dated investing can offer a competitive
alternative to traditional annuity products along
16
14
with market linked returns
12
10 How can the Axis Long Duration Fund help?
8 The proposed fund positioning aims to invest and
6
4
hold onto long dated Government securities and
2 can be used to build & structure a stable long term
0 income solution at the time of retirement
2002 2007 2012 2017 2022

CPI Inflation (%) 30 year G-Sec YTM (%) Liquidity

Investors can gain from indexation benefits and
limited incidence of taxation at the time of
Source: Bloomberg, CSO, Axis MF Research. Data as of November 30th 2022. withdrawal. The fund also offers no entry or exit
Past performance may or may not be sustained in future. Generic 30 Year G-Sec security load to support emergency withdrawals
used for illustrative purposes only.
The yield to maturity given above is based on the portfolio of funds as on November 30th 2022. *Source: Bloomberg, Axis MF Research. Data as of 30thNovember 2022. The
This should not be taken as an indication of the returns that may be generated by the fund and above factors are not exhaustive.
the securities bought by the fund may or may not be held till their respective maturities. #
Investors are advised to consult their tax advisors for advice on taxation
The calculations are based on the invested corpus. matters relating to your portfolio and suitability of the product. For detailed
Investment strategy please refer SID of the Scheme. The above mentioned
investment strategy is based on prevailing market condition and subject to
change within the limits of the SID basis fund managers views

Axis Long Duration Fund Product Benchmark Potential Risk Class Matrix
(An open ended debt scheme investing in instruments such that the Macaulay Duration
of the portfolio is greater than 7 years. A relatively high interest rate risk and moderate
low credit risk.)
Benchmark: Nifty Long Duration Debt Index – A III Low to
Moderate
Moderately
High
Low to
Moderate
Moderately
High

Moderate High Moderate High

This product is suitable for investors who are seeking*

Low Low

• Regular income over long term

Very High Very High

RISKOMETER RISKOMETER

• Investment in Debt and Money Market instruments with portfolio Investors understand that their principal will be at Nifty Long Duration Debt Index – A III
moderate risk
Macaulay duration of greater than 7 years
*Investors should consult their financial advisers if in doubt about whether the product
is suitable for them.

The product labelling assigned during New Fund Offer is based on internal assessment of the Scheme Characteristics or model portfolio and same may vary post NFO when
actual investments are made.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.