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Mutual Funds
Invest in Mutual Funds with us and supercharge your investments with just a few clicks. Offering a perfect blend of liquidity, flexibility, and capital appreciation, Mutual Funds can set you up for long-term success while minimising risk through professional asset management. With our easy investment process, investing in Mutual Funds online has never been easier. We bring investing to your fingertips through our safe and secure net banking portal and ‘open Axis Bank’ mobile app — ensuring a quick, convenient, and effortless investing experience in Mutual Funds.
Why should you invest in Mutual Funds?
Mutual Funds’ investments spread risks across different securities and asset classes. This reduces the risk exposure from single investments and stabilises market returns through balanced asset management and allocation.
Mutual funds offer a plethora of options, such as equity funds, debt funds and hybrid funds, to choose from based on your financial goals, investment horizon and risk tolerance.
With features like systematic investing (SIP), switching of funds, dividend reinvestment and easy withdrawal, Mutual Funds enable you to adjust, reallocate and rebalance your investments to meet evolving financial needs.
The collective investment approach of Mutual Funds facilitates bulk investments. This minimises associated costs and maximises market returns through economies of scale.
Providing easy access to funds, Mutual Funds allow you to swiftly convert your investment funds into cash, ensuring financial safety and stability in emergencies.
With low minimum investment requirements, starting from just ₹100, Mutual Funds make quality investments accessible to all, irrespective of their financial capacity or status.
Start your SIP journey today
SIP Calculator
A Systematic Investment Plan (SIP) enables you to invest small amounts consistently, helping you move closer to your financial aspirations. This tool estimates the potential returns on your monthly contributions, making it simpler to envision your financial future.
Your Total Investment Value is
49,46,277
Monthly SIP Amount
₹ 15,00,000
How do Mutual Funds work?
The Mutual Funds investment process comprises the following five main steps:
- 01
Pooling of funds
Funds collected from multiple investors are pooled together to create a large portfolio. Investors put money into a Mutual Fund scheme either through a lump sum or SIP.
- 02
Investment
The pooled funds are then strategically invested in stocks, fixed income securities, money market instruments, commodities like gold etc. depending on the scheme’s objective
- 03
Fund Management
Professional fund managers manage the investment portfolio based on their research and analysis, and monitoring market trends.
- 04
Net Asset Value (NAV)
You receive units for your investments in a mutual fund. The price of a unit is known as the NAV, which is calculated as the total asset minus the total liabilities, divided by the total number of units outstanding. The NAV is calculated daily and fluctuates based on the performance of underlying assets.
- 05
Return on investment
You earn returns from mutual fund investments either through capital gains due to appreciation in NAV over time or through dividends (in case if you have chosen Dividend plan).
Eligibility for Mutual Funds
Documentation for Mutual Funds
Make sure you have all the necessary documentation for Mutual Funds in place. As per SEBI norms, Know Your Customer (KYC) compliance is a pre-requisite for investments in Mutual Funds. Accordingly, all customers looking to invest in Mutual Funds need to fill up the Mutual Fund account application form along with Customer Risk profiler and KYC application and submit them to the nearest Axis Bank Branch.
Types of Mutual Funds
There are various types of Mutual Funds which investors can choose from, based on their investment goals and investment tenure. Though there are various types of mutual funds, here are some of the most common ones-
Structure-based
Some mutual funds are close-ended funds or schemes, while the others are open-ended funds. Investors can invest in close-ended funds only for a particular duration. The investment can be made only during a New Fund Offer (NFO) by the fund house and one can only exit them after the end of the fund’s tenure.
On the other hand, the units in an open-ended scheme can be purchased and sold as and when the investor needs to. This also means that entering and exiting the scheme is not limited to the tenure of the fund, and the units are bought and sold on the Net Asset Value (NAV).
The NAV is the unit price (per share value) of the fund and when you buy or sell a fund, the NAV will determine the fund’s net value and is calculated by dividing the total value of the securities in the fund’s portfolio, excluding the liabilities, by the total number of the outstanding shares.
Equity Funds
As the name suggests, equity funds invest in equity instruments such as shares and are considered to be high-risk funds. Investors with a high-risk profile seeking capital gains over the long term may consider these funds for good returns. According to SEBI guidelines, equity funds from companies that rank between 1 and 100 in terms of market capitalisation are called large-cap funds and carry the least risk, while mid-cap funds belong to companies with a market capitalisation between 101 and 250.
Mid-cap funds carry more risk than large cap funds but are less risky than small-cap funds.
Small-cap companies are the ones that have a market capitalisation above 250 and are riskier than large-cap and mid-cap funds.
Solution-oriented funds are yet another type of equity funds and one can invest in them to plan their future goals. Hence, there are solution-oriented funds that help you invest for your retirement or to plan a children’s education fund, where financial security is key.
Multi-cap – As compared to small-cap or mid-cap funds, multi-cap funds carry lower investment risk. This is due to their investment in the equity shares of different companies, irrespective of the company’s market capitalisation. However, multi-cap funds do carry a higher risk than large-cap funds.
Flexi-cap –This category of mutual funds offers greater investment choices and more diversification opportunities. This is because these funds do not restrict themselves to investing only in companies with a pre-defined market capitalisation like in the case of small-cap, large-cap or mid-cap funds.
Debt Funds
Debt funds invest in fixed-income or debt investments such as corporate bonds, government bonds, commercial papers, and some money market instruments. Hence, they are also known as fixed-income funds. These are moderate-to-low-risk funds, and one can opt for liquid funds, gilt funds, income funds, liquid funds, corporate bond funds and so on.
Some debt funds are duration based; for example, overnight funds invest in securities that mature in one day, ultra-short duration funds invest in debt instruments and mature in 3-6 months, while low duration funds have a maturity period of 6-12 months.
You can also choose risk/rating-based funds such as dynamic funds that invest in debt securities across with varying maturities or credit risk funds that invest in corporate bonds under highest ratings.
Hybrid Funds
Hybrid Funds are those which invest in a combined portfolio of equity and debt instruments. The most popular in this category is Balanced Funds. Such funds aim to offer regular income and growth under a single investment. While hybrid funds are more suitable for moderate-to-high risk profile seeking a medium-to-long term investment, low-risk and conservative investors can also opt for conversative hybrid funds.
Tax Saving Funds
Tax saving funds such as Equity Linked Savings Schemes (ELSS) help you save on taxes under Section 80C of the Income Tax Act, 1961, while you grow your money by investing in the fund.
Index Funds/Exchange-Traded Funds
Index Mutual Funds are passively managed fund which means fund manager invests in stocks that track and mimic the index and thereby, linked with the returns of market indices NIFTY 50 or BSE SENSEX. These stock market indices comprising stocks chosen on the basis of a company’s size, its market capitalization or the industry type, measure and reflect the changes in the market. Since one cannot directly invest in a market index, one can invest in those stocks through Index Funds or ETF which is similar to Index Mutual funds. The difference between the two is that you need a demat account to invest in an ETF, but not for investing in an index fund.
Disclosures & KYC Requirements
SID/KIM/SAI
KYC status check
Mutual Fund Commission structure
FATCA/CRS and Supplementary KYC Information
MITRA
You can refer the scheme documents Scheme Information Document (SID)/ Key Information Memorandum (KIM)/ Statement of Additional Information (SAI) for the respective AMC's by clicking on the below links
KYC status can be checked from any of the below mentioned KRA websites, no matter where you have submitted your KYC application form:
Know your KYC status in few easy steps
Step-2a
There are KRAs (KYC Registration Agencies) and your KYC may be registered with any one of them. You would have already got to know of the KRA with whom your KYC is registered in Step-1. You can proceed to validate your KYC by using the relevant link below and proceed as directed.
- CVL KRA : https://validate.cvlindia.com/CVLKRAVerification_V1/
- Karvy KRA : https://www.karvykra.com/KYC_Validation/Default.aspx
- Cams KRA : https://camskra.com/PanDetailsUpdate.aspx
When you input your PAN details here, you will also get to know whether your:
- Mobile no. is validated
- Email ID is validated
- PAN-Aadhaar linking is completed
(Note: Depending on the KRA, they may show one or more of the above)
Step-2b
In accordance with the SEBI circular: SEBI/IMD/CIR No. 4/ 168230/09 and RBI guidelines on Marketing/Distribution of Mutual Funds, below are the details of the commission earned by Axis Bank Ltd.
| Fund Schemes | Trail commission p.a. |
|---|---|
| Equity & ELSS Funds | 0.10% - 1.80% |
| Hybrid Funds | 0.35% - 1.70% |
| Debt and Liquid Funds | 0.01% - 1.48% |
| Others & Solution Oriented | 0.03% - 1.75% |
Please click here for scheme wise commission structure.
The commission structure is effective from 1st July 2025 and will be updated on best effort basis and subject to change without prior notice, based on the rates revision received from the AMC
Service platform to trace inactive and unclaimed Mutual Fund folio(s) - MITRA (Mutual Fund Investment Tracing and Retrieval Assistant)
SEBI has launched MITRA platform to help investors with a searchable database of inactive and unclaimed Mutual Fund folio(s). An inactive folio is defined as Mutual Fund Folio(s) where no investor initiated transaction/s (financial and non-financial) have taken place in the last 10 years but unit balance is available. In addition to locating inactive and unclaimed Mutual Fund folio(s), MITRA platform will also assist in encouraging investors to do KYC as per current norms.
To learn more about MITRA platform and how you can use it, we encourage you to go through the SEBI circular (SEBI/HO/IMD/IMD-SEC-3/P/CIR/2025/15 - dated 12th February 2025). Click here to view the same.
FATCA/CRS and Supplementary KYC Information
What is FATCA?
India has joined the Multilateral Competent Authority Agreement (MCAA) on automatic exchange of financial information. All countries which are signatories to the MCAA are obliged to exchange a wide range of financial information after collecting the same from financial institutions in their jurisdiction. The FATCA agreement enhances tax transparency and accountability in matters of financial reporting and payment of taxes which are legitimately due to various governments.
The basic purpose of FATCA is to prevent US persons from using banks and other financial institutions outside the USA to park their wealth outside US to avoid US taxation on income generated from such wealth. Alike FATCA, Indian Government has further committed to implement a Common Reporting Standard (CRS) as part of reciprocal exchange of information on financial accounts on an automatic basis with other countries.
AMFI through its circulars no. 63/2015-16 dated September 18, 2015 directed the AMCs to adhere to the following requirements from November 1, 2015:
- All new investors to provide additional KYC details - Income slab, Occupation, Net worth, Politically Exposed Status, etc.,
- All new non-Individual investors to provide the Ultimate Beneficial Ownership (UBO) details
- All investors to submit FATCA/CRS declaration while opening account from 1st November 2015 and also for all the new accounts opened after 1st July 2014 to 31st October 2015
Similarly, from 1st January 2016 all Mutual Funds have been advised to make it mandatory for existing investors to:
- Provide additional KYC details as mentioned above in order to make purchases (including Switch, STP) in their MF accounts
- Non-individuals to update the Ultimate Beneficial Ownership (UBO) details in their existing accounts
- All Individual and Non-individual investors to provide FATCA/CRS declaration
Online declaration of FATCA and Additional KYC
Investors can use the following online facility for declaration:
For more details visit your nearest Axis Bank branch.
Service platform to trace inactive and unclaimed Mutual Fund folio(s) - MITRA (Mutual Fund Investment Tracing and Retrieval Assistant)
SEBI has launched MITRA platform to help investors with a searchable database of inactive and unclaimed Mutual Fund folio(s). An inactive folio is defined as Mutual Fund Folio(s) where no investor initiated transaction/s (financial and non-financial) have taken place in the last 10 years but unit balance is available. In addition to locating inactive and unclaimed Mutual Fund folio(s), MITRA platform will also assist in encouraging investors to do KYC as per current norms.
To learn more about MITRA platform and how you can use it, we encourage you to go through the SEBI circular (SEBI/HO/IMD/IMD-SEC-3/P/CIR/2025/15 - dated 12th February 2025). Click here to view the same.
Fees & Charges
Partners
Axis Bank is partnered with the following AMCs to provide their schemes to all our customers.
Here is a brief outline of how one can invest in mutual funds:
- Identify your goals:
Before choosing a mutual fund, know your investment goals. Your mutual fund investment should be aligned with your investment horizon and objectives so that you know how much wealth you need to accumulate over a given period. - Know the types of mutual funds:
If you have a low-to-moderate risk appetite, opt for debt funds or schemes with a conservative or moderate risk profile. This helps you avoid significant losses and keeps your funds stable. - Fulfil the Know Your Customer (KYC) requirements:
When you invest in mutual funds, you will need to complete your KRA KYC (Know Your Customer) verification and documentation, which is different from bank KYC. Most people are often confused between bank KYC and KRA KYC. The KYC Registration Agency (KRA) is registered with the Securities and Exchange Board of India (SEBI) and centrally documents the KYCs of investors. This way investors can trade or invest through various intermediaries with only a one-time KYC process through the intermediary.
And if there is any need to make changes to the investor’s information across many SEBI registered intermediaries, the same done by submitting only a single request to the KRA via one of the registered intermediaries. Once you are KRA compliant, you will need to submit your KRA application form. - Note all risk factors:
When you invest in mutual funds, be aware of the risks that come with a mutual fund investment. Avoid opting for high-risk funds if you do not have a high-risk profile. Without considering your risks, you may not be able to get the desired results from your investment. - Choose a reputable fund house:
The fund house or asset management company (AMC) you choose should be experienced and reputed in the market. A strong AMC ensures well-researched strategies and the selection of the right funds for your investment. - Assess fund performance:
The fund of your choice should have performed well across varying time periods. Consistent long-term performance indicates stability and enhances the safety of your investment. - Choose between SIP or lump sum:
Once you identify the right mutual fund, you can invest either through a Systematic Investment Plan (SIP) or in a lump sum. SIP allows you to invest a fixed amount regularly, helping you start small and benefit from rupee cost averaging. On the other hand, a lump sum investment lets you invest a large amount at once, which is more suitable when markets are low.
Several factors will help you determine which mutual fund best suits your financial objective. Here are some of the main ones:
- Investment Target
Choose if generating a steady income or long-term capital growth is more important - Fund Manager:
Choose if generating a steady income or long-term capital growth is more important - Expense Ratio:
A yearly management fee is assessed by Mutual Funds. Because it can impact long-term returns, look for a mutual fund with a low expense ratio. - History:
Although a Mutual Fund's track record is important to take into account, past performance is not a reliable predictor of future returns.
The MF scheme will invest its corpus in various financial instruments / products in line with its investment objective and earn interest, dividend or capital gain/loss. As an investor, while doing your investment, you can choose from the 'IDCW' or 'Growth' option.
- IDCW (Income Distribution cum Capital Withdrawal) option - Based on the performance and income earned, the scheme may do a payout to the investors at regular intervals. This payout can be from the income generated (via dividends, interest & capital gains/loss) by the scheme and/or withdrawal of capital. Further, you may opt for the IDCW payout or reinvestment option.
The IDCW payout amount will be paid to you / credited to your bank account whereas in the re-investment option, the amount will be re-invested in the same scheme at the NAV applicable for the day. - Growth option - Here, the fund does not pay anything to the investors by way of regular payouts. All the income earned by the fund is reinvested so that your investment compounds over a period of time.
Note: Mutual Fund investments are subject to market risk. Returns from investment in Mutual Fund products is not guaranteed. Read all scheme related documents carefully.
When you redeem your mutual fund units, it is subject to an exit load, which is charged to discourage frequent withdrawals and short-term trading, ensuring investors stay invested for a longer duration in line with the fund’s investment strategy
Additionally, withdrawals from mutual fund investments are also subject to taxation.For instance, if equity-oriented funds are held for more than 12 months, the gains are classified as long-term capital gains (LTCG).
In terms of tax treatment, LTCG exceeding ₹1.25 lakh in a financial year is taxed at 12.5%. On the other hand, if you redeem within 12 months, the gains are classified as STCG and taxed at 20%. For debt-oriented funds, gains are taxed at the applicable income tax slab rates, irrespective of the holding period.
Mutual funds are taxed based on the type of fund and the holding period. For instance, if equity-oriented funds are held for more than 12 months, the gains are classified as long-term capital gains (LTCG). In terms of tax treatment, LTCG exceeding ₹1.25 lakh in a financial year is taxed at 12.5%.
On the other hand, if you redeem within 12 months, the gains are classified as STCG and taxed at 20%. For debt-oriented funds, gains are taxed at the applicable income tax slab rates, irrespective of the holding period.Mutual funds like Equity-Linked Savings Schemes (ELSS) are eligible for tax benefits under Section 80C of the Income Tax Act, 1961.
Standard risks associated with Mutual Funds investment include:
- Risk of loss or decline in investments due to due to market fluctuation.
- Debt funds are negatively impacted when interest rate rises as the value of bonds and interest rate inversely related.
- Some securities may not be easily sold during market downtrend thereby resulting in high impact cost.
The process of redeeming your mutual fund units is simple. You can simply get in touch with your fund house or drop an online request for the redemption to redeem your mutual fund units. Depending on the type of fund you have invested in, you only need to sell the units of your mutual fund investment at the Net Asset Value (NAV) on the day of the withdrawal. The amount you get from the sale of these units will be credited to your account once your fund house processes the redemption request.
Terms & Conditions
Mutual Fund Investments are subject to market risk, read all scheme related documents carefully. Axis Bank Ltd is acting as an AMFI registered MF Distributor (ARN Code: ARN-0019) since 20/02/2007 and the current validity of ARN is upto 19/02/2027. Visit Axis Bank Internet/Mobile banking platforms, MF scheme details page for more information. The purchase of Mutual Funds by Axis Bank's customers is purely voluntary and not linked to availment of any other facility from the Bank. The purchase of units shall be at the customer’s risk without the bank guaranteeing any assured returns.
Mutual Fund KYC Guidelines
KYC or Know Your Customer is a customer identification process. The Securities and Exchange Board of India (SEBI) has laid down guidelines under the Prevention of Money Laundering Act 2002, which makes it binding for financial institutions and financial intermediaries like Mutual Funds to acquaint themselves with their customers. KYC process helps prevent money laundering and other suspicious transactions. With effect from January 1, 2012 all categories of investors irrespective of amount of investments Mutual Funds are required to comply with KYC for carrying out any transactions in Mutual Funds. Thus, all applicants investing into mutual funds would be required to be KYC compliant by any KYC Registration Agency (CAMS, KARVY, CVL, NSE or NSDL) without which the transactions may be liable to be rejected by the respective Mutual Fund houses.
Please note KYC norms are mandatory for ALL applicants/investors (including existing investors and joint holders) while investing with any SEBI registered Mutual Fund, irrespective of the amount of investment.
Frequently Asked Questions
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