Could you share your views on Axis Mutual Fund? Axis Long Term Equity got a Silver rating. I invested based on that and I felt vindicated when it got all the fund awards. But what are your views now? I don’t know whether to sell or hold. I did check the website but the analysis is no longer available.
Axis Mutual Fund is currently conducting an internal investigation, which was started in February 2022 to evaluate potential irregularities relating two of their employees’ a fund manager and their chief trader. Both the employees have since been terminated (May 2022) whilst the investigation is still ongoing. We are keeping a close eye on the investigation and its findings. To this day, the firm has a clean regulatory record with a well-structured investment and risk management processes.
Although the fund house terminated the employment the two managers who have likely been associated with the irregularities, we think that it’s important to evaluate the irregularities in full detail once the results of the investigation become known. Considering the current situation, we think that it would not be appropriate to draw any conclusions and therefore adapt a wait and watch approach for now. We will also keep an eye on measures that Axis takes to prevent such issues from occurring in the future and ensure that investors’ interests remain protected.
To answer your question about whether to sell or hold the fund, we think that it’s important to wait until the full results of the investigation are known so that we can ascertain the cause and impact of the irregularity. For now, we don’t see any major impact on the funds and suggest that you don’t take any further action on these for now.
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Articles authored by Kavitha Krishnan
