Multi-manager fund of funds (FoF) Axis All Seasons Debt Fund, which is open for subscription till 22 January, is the first of its kind in India’s debt funds space. The fund will invest in the units of other debt-oriented mutual fund schemes. But unlike other FoFs that typically invest only in the schemes of the same fund house, Axis All Seasons Debt Fund will select schemes across fund houses.
With investors having far from satisfactory experience with debt funds over the last one year, the FoF structure may provide an efficient way to diversify fund manager risk. The success of the dynamic strategy again rests on the manager’s assessment of the risk-reward relationship across duration and credit segments.
