Is Axis Bluechip Fund Direct Growth Tax Saver the best option? How is Axis Bluechip Fund Direct Growth? A lot of questions come to mind before investing hard-earned money, thus today in this post we are sharing the one large-cap fund that was discussed a lot till mid-last year. This fund has given excellent returns over the last 2 to 3 years, well outperforming its category average. But the fund’s returns have stagnated in the last year. This fund has not been able to beat its benchmark or category average.
Today we are talking about Axis Bluechip Fund. In today’s post, we will see what you should do if you buy this fund. And if you want to invest in a large-cap fund, is this fund right for you? Therefore we will look at the past returns of the fund and its investment strategy.
Axis Bluechip Fund Direct Growth Features and Evaluation
We will discuss the evaluation and also look at its features, so read the post till the end. Axis Bluechip Fund by Axis Mutual Fund is a bluechip mutual fund. Bluechip funds invest their assets mainly in large-cap companies i.e. those companies which rank in the top 100 by market capitalization. Investing in such companies has some advantages for investors like
- Bluechip companies have a proven track record
- They have established business models that make them leaders in their sectors.
- The trading volume of shares of such companies is very high.
- Largecaps have lower volatility compared to midcaps and small caps, which is observed in the long term.
- Axis Bluechip Fund’s investment objective is to invest in large-cap companies that can consistently deliver returns.
Advantage of Axis Bluechip Fund Direct Growth Plan
Long-term capital appreciation by investing in shares and equity derivatives of large-cap companies.
Let’s take a look at the Axis Bluechip Fund Direct Growth’s past returns.
Axis Bluechip Fund has underperformed the benchmark in the last 1 year The fund has returned 27.45% in the last 1 year. Which is a benchmark return of 32.72%. However, if we talk about the long term, Axis Bluechip Fund has outperformed its benchmark in every time frame. The fund gave an average return of 21.11% and 19.90% over 3 and 5-year periods and 17.16% over a 10-year period.
Axis Bluechip Fund Direct Growth Plan Launched Date?
The fund was launched in January 2010. And since then the Axis Bluechip Fund Direct-Growth has given an average annual return of 13.77%. Fund valuation seems a bit expensive.
Features Of Axis Bluechip Fund Direct Growth Plan.
- The fund has price to book ratio of 5.53 and price to earnings ratio of 37.63. Let’s now look at stock and sector allocation to understand fund concentration.
- Axis Bluechip Fund has 33 stocks in its portfolio with a maximum allocation of 9.10% to Bajaj Finance.
- This is followed by 8.94% at Infosys and 8.62% at ICICI Bank
- The total holding of the top 10 stocks is 65.60%. Talking sector-wise, the fund’s largest holdings are in the financial sector at 38.37%, followed by 17.71% in technology and services. And 9.93% are invested respectively.
- Top 3 Sectors Total Weightage is 66.01% Axis is Bluechip Fund’s Investment Style.
Let’s now look at some features of the fund to primarily invest in large-cap growth stocks. Axis Bluechip Fund is an open-ended large-cap equity scheme with further growth options in this fund.
NAV means Net Asset Value of fund with capital withdrawal option available with both income distributions. 46.66 on 10 December 2021 as on 30 November 2021. Assets under the management of the fund were 33,519 crores. Axis Bluechip Fund has an expense ratio of 1.64% fund manager Mr. Shreyash Devalkar has been running this fund since November 2016.
You must know before you invest in Axis Blue chip Fund Direct Growth
If you want to invest in this fund you can make a single investment of Rs 5000 with an additional investment of Rs 100 allowed if you prefer to invest through SIP mode. So the minimum investment should be Rs 500, and some exit load is applicable for redemption in this fund.
If you sell your unit within 1 year of purchase. So there is no exit load on the first 10% of units, above 10% of units sold you have to pay 1% exit load. No exit load is applicable if you sell the unit after 1 year.
Finally, let’s talk about the tax rate applicable to the profits invested in these funds. Since it is an equity fund, the taxes levied on it will be the same as equity That is, if you sell your unit within 1 year of purchase, you will have to pay short-term capital gains tax.
It is 15% if you sell the unit after 1 year you will get all the profit. Long-term capital gains tax will be charged at the rate of 10% but note that this is only applicable at the rate of 10%. If your total profit in 1 financial year is more than Rs.1 lakh.
If you have already invested in Axis BlueChip Fund Direct Growth What you should do now?
Should you move out of this fund after looking at the last 1 year’s returns? And is it the best fund if you are thinking of a new investment? For this, let’s first find out why Axis Bluechip Fund’s returns have underperformed the benchmark in the last 1 year. As I said the investment style of Axis Bluechip Fund is to invest in growth stocks. Growth stocks have relatively underperformed value stocks over the past 1 year. And most analysts expect the stock to outperform over the next few years as well. So if you are an investment thinker new to large-cap funds, this fund by Axis Mutual Fund may not be the best option.
This was for new investments, but if you have already invested. So what you should do is, firstly, don’t get out of investment too quickly based on past returns. Cycles tend to come in equities, sometimes value stocks move, and sometimes growth stocks. If your investment horizon is long-term and whatever, you will continue to benefit from this cycle. We have seen many times that investors try to take advantage of these market cycles and timing.
Disclaimer: This is the opinion of the writer, please read the market before investing. The data provided here are from internet sources and that to a year ago data. Thus you need to do your own study before investing. Dtai.com and its owner or writer will not be responsible for any loss you may suffer due to market conditions and Axis Bluechip Fund Direct Growth performance.
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