The Axis bluechip fund is a large mutual fund with a large cap. If you are a conservative equity investor and want to invest in large-scale cap schemes such as Axis Bluechip Funds for five to seven years, then you can consider investing.
The fund has surpassed the benchmark index (12.33 per cent) and the category average (12.21 percent) with a 7-year return of 14.86 percent.
BASIC FACTS
- Date of launch: 5 JAN 2010
- Category: Equity
- Type: Large Cap
- Average AUM: Rs 2,233.50 Cr
Fund performance
The Axis Bluechip Fund has managed to reverse the trend after delivering a spectacular performance over the past several years and is back in the reckoning. The scheme, which invests mainly in large-cap, has surpassed its peers by a large margin in the past year. It has achieved around 20 per cent return in a year, while its peers have given 7–12 per cent.
There are a few reasons why the scheme has performed well. First, the scheme’s fund manager Shreyash Dewalkar, who joined the fund house in November 2016, focused on quality and growth companies, which were in sync with the tastes of the markets.
Factors he took into consideration when selecting companies included high returns on equity (ROE), revenue and margin growth, and market penetration. Three sectors meet these criteria: retail-focused banks, auto and auto-subsidiaries, and consumption.
The fund has an outstanding outperformance track record. In its stock picks, it emphasizes quality and growth, prioritizing companies with better cash flow and higher earnings visibility.
While the fund continues to maintain a compact portfolio, in recent times it has sharply cut the number of stocks in response to current market conditions, where only select stocks are doing well.
The fund manager is comfortable taking large positions in some high-confidence bets aimed at delivering high performance. The fund considers the downside better than its peers. This has kept it in good condition for the long term, even with the risk of not matching peers during the market boom. The fund has proved to be a reliable offering in this category.
Purpose of your scheme
Assuming a 12 per cent annual return, you can build a portfolio of Rs 5.28 lakh by investing Rs 5,000 at the end of six years. Remember that mutual funds do not guarantee any returns, and the actual returns depend on the investment success of the scheme.
You have unrealistic expectations for returns. Do not chase returns, and join schemes that offer higher returns. That is one of the most common mistakes that most investors make.
List your various short-term and long-term financial goals. Put a number for each objective; make a provision for annual inflation to measure a workable target corpus to achieve these objectives. When you know the goal, you can find out how much you have to invest per month to reach it (you can use the PMT formula in Excel). In general, stick to debt mutual funds to keep your short-term goals in mind. Invest in an equity mutual fund scheme that suits your risk profile for long-term goals.