No restriction on redemption from Axis Mutual Fund schemes, says Chandresh Nigam

Chandresh Nigam, MD & CEO, Axis Mutual Fund, said that Axis Mutual Fund will continue to maintain the highest governance standards, stringent protocols in their fund management. Nigam has written a letter to unit holders after the fund house suspended two fund managers recently. There were allegations of front-running by them.

Read more here: Under scanner for front running? Axis Mutual Fund suspends two fund managers

Nigam said that the fund house is not putting any limits on redemptions by investors. "There are no restrictions on redemptions. In any event, we believe that the available liquidity with our funds and the quality of our portfolio will enable us to meet redemption pressures, if any," said Chandresh Nigam.


He also ensured the investors that the recent development will not impact the portfolios held by any of the schemes held by Axis AMC.

"Axis AMC started an investigation in February 2022 and is using reputed external advisors to carry out the investigation. While the review process is still continuing, we have taken action against two fund managers handling equity schemes (one of them is our chief dealer), pending further investigation. As our investigation progresses, based on the findings, we will take further action as may be necessary," said Nigam.


He also added the experienced fund managers have replaced these two managers in their schemes. Ais MF has also appointed another dealer to execute the deals. The seven funds that have seen the management change are: Axis Consumption ETF, Axis Banking ETF, Axis NIFTY ETF, Axis Arbitrage Fund, Axis Quant Fund, Axis Technology ETF and Axis Value Fund.