Axis Multi Asset Active FOF: Combined power of multiple asset classes to combat complex market dynamics

Current market scenario

Equity market is facing headwinds due to geo-political uncertainties, US tariffs, INR weakening and continued FII selling. While the market has recovered from March 2025 lows, we are seeing profit booking at higher levels. Despite 125 bps of rate cuts in CY 2025, bond yields have been hardening due to heavy State Government borrowings. Precious metals are at record highs, and the rally shows no signs of slowing. In current market conditions, a multi asset strategy may provide stability to your investment portfolio. Axis Mutual Fund launched the Axis Multi Asset Active FOF a few months back, the scheme has a fund of funds structure and invests in equity, debt and commodity funds of Axis MF, as well as other AMCs.

Why multi asset allocation?

• Winners rotate across asset classes: The chart below shows the calendar year returns of different asset classes since 2010. You can see that equity was the best performing asset class 7 times, gold 4 times, silver 4 times and debt once. A multi asset allocation strategy will provide stability to your investment portfolio.
  
  

  

  Source: MCX spot prices, NSE, Advisorkhoj Research, as on 31^st December 2025. Equity is represented by Nifty 50 TRI, debt by Nifty 10 year Benchmark G-Sec Index, Gold and Silver by MCX spot prices of respective commodities



• Adding commodities can improve portfolio risk adjusted returns: The median and standard deviation of rolling returns of equity and gold for different tenures over the last 20 years shows that gold can provide superior risk / return trade-off compared to equities in the short to medium term.
  
  

  

  Source: MCX spot prices, NSE, Advisorkhoj Research, as on 31^st December 2025



• Asset allocation can capture upside and limit downside versus single asset class
  
  

  

  Source: Axis MF, as on 30^th September 2025. *Axis internal model is Proprietary model considering factors like Valuation, Macros, Trends and commodity factors. The performance is based on outcome of model and considering underlying as a combination of Nifty 500 Index for equity, NIFTY Composite Debt Index for debt and Axis Gold ETF for commodity.

Why FOF structure for multi asset allocation?

• Lower reliance on one fund manager/style/cycle


• It is not just about choosing the right asset class but also within asset class - FoF structure enhances the probability of allocating to performing themes


• Benefits from a broader range within each asset class, enabling dynamic allocation adjustments as market cycles evolve


• Quick and efficient switch to performing themes - No taxation on re -balancing within the scheme

Axis Multi Asset Active FOF - Asset Allocation

Axis MF has a strong IDCW track record. Axis MF schemes (IDCW options) have been making regular monthly, quarterly and annual IDCW payments with strong consistency.

Monthly IDCW Track Record of select Axis MF hybrid schemes

Source: Advisorkhoj Research, as on 31^st December 2025. *Monthly IDCW option. Disclaimer: Past performance may or may not be sustained in the future. IDCW payouts are made at the discretion of the fund house / fund manager depending on accumulated profits of the scheme

Yearly IDCW Track Record of select Axis MF hybrid and FOF schemes

Source: Advisorkhoj Research, as on 31^st December 2025. *Yearly IDCW Option. Disclaimer: Past performance may or may not be sustained in the future. IDCW payouts are made at the discretion of the fund house / fund manager depending on accumulated profits of the scheme

The strong IDCW track record of Axis MF inspires confidence in investors who may be looking regular cash-flows through IDCW. After Dividend Distribution Tax (DDT) was abolished, mutual fund IDCW payments are taxed in the hands of the investor as per the income tax rate of the investor. As per provisions of Section 194K, the AMC will have to deduct TDS at 10% for IDCW payments exceeding Rs 10,000 in a financial year for Resident Indians. If IDCW payments are less than Rs 10,000 no TDS will be deducted. The Union Budget of FY 2025-26, there will be no tax on income up to Rs 12 lakhs per annum. In other words, IDCW payments will be tax free for investors provided the total income (including IDCW) does not exceed Rs 12 lakhs per annum.

Why invest in Axis Multi Asset Active FOF?

• Fund selection based on fund managers view, with 80% allocated to core holdings for long term stability and 20% deployed tactically to capitalize on short-term market trends


• Risk is managed at two levels: 1. Diversified Asset class 2. Fund selection - internal limit on single scheme exposure except commodity ETF


• Fund is jointly managed by Head Debt and Head Equity, thus ensuring balanced representation.


• Allocation guided by a robust quantitative model and internal committee


• Better post-tax returns over a holding period of 24 months

Investors should consult with their financial advisors or mutual fund distributors if Axis Multi Asset Active FOF is suitable for their investment needs.