Axis MF expects to raise Rs 700 cr from Children's Gift Fund

MUMBAI: Axis Mutual Fund, which launched an open-ended balanced scheme Children's Gift Fund here today, expects to raise Rs 700 crore through the fund.

The fund, which opens on November 18, will close on December 2. It will reopen for continuous sale and repurchase on or before December 14.

"We are looking at mopping up Rs 600-700 crore from the Children's Gift Fund during the NFO period itself," Axis Mutual Fund managing director and chief executive Chandresh Kumar Nigam told reporters on the sidelines of the launch.

"While 40-60 per cent of the fund will be invested in equity, remaining amount would go to debt and cash future arbitrage. The fund will comprise two plans - direct plan and regular plan - with each offering two sub plans, compulsory lock-in and no lock-in," he said.

Some of the fund houses which are already having children fund include HDFC MF, UTI MF and LIC Nomura MF.

Even as retail AUM (Assets Under Management) of the mutual fund industry currently stands at over Rs 3 trillion, merely 1 per cent of this AUM is being contributed by children's fund.