Top MFs: Axis Bluechip Fund

Objectives

Axis Bluechip Fund is a Large Cap mutual fund scheme from Axis Mutual Fund. This fund has been in existence for 9 yrs, having been launched on 01/01/2013. The fund has an expense ratio of 0.48%, which is higher than what most other Large Cap funds charge.

Fund Key Highlights

Axis Bluechip Fund has ₹34,584 Crores worth of assets under management (AUM) as on 31/12/2021 and is medium-sized fund of its category.

It is benchmarked against NIFTY 50 Total Return Index. The fund was launched on Jan 05, 2010.

The investment objective of the fund is that " The scheme aims to generate long term capital growth by investing in a diversified portfolio predominantly consisting of equity & equity related instruments of large cap companies. "

Axis Bluechip Fund shall attract an Exit Load, "For units in excess of 10% of the investment, 1% will be charged for redemption within 12 months".

Minimum investment required is Rs 5000 and minimum additional investment is Rs 100. Minimum SIP investment is Rs 500.

Asset Allocation & Portfolio Composition

1. The asset allocation of the fund comprises around 98.22% in equities, 3.87% in debts and -2.09% in cash & cash equivalents.

2. While the top 10 equity holdings constitute around 67.18% of the assets, the top 3 sectors constitute around 67.09% of the assets.

3. The fund largely follows a Growth oriented style of investing and invests across market capitalisations - around 100.0% in giant & large cap companies, 0.0% in mid cap and 0.0% in small cap companies.

Tax Implications

1. Gains are taxed at a rate of 15% (Short-term Capital Gain Tax - STCG) if units are redeemed within 1 year of investment.

2. For units redeemed after 1 year of investment, gains of upto Rs. 1 lakh accruing from those units in a financial year shall be exempted from tax.

3. Gains of more than Rs. 1 lakh will be taxed at a rate of 10% (Long-term Capital Gain Tax - LTCG).

4. For Dividend Distribution Tax, the dividend income from this fund will get added to the income of an investor and taxed according to his/her respective tax slabs.

5. Also, for dividend income in excess of Rs 5,000 in a financial year; the fund house shall deduct a TDS of 10% on such income.

Return track record

Axis Bluechip Fund returns of last 1-year are 23.10%. Since launch, it has delivered 17.43% average annual returns. The fund has doubled the money invested in it every 2 yrs.

The Current Net Asset Value of the Axis Bluechip Fund as of 19 Jan 2022 is Rs 47.2800 for Growth option of its Regular plan.

Its trailing returns over different time periods are: 28.67% (1yr), 19.51% (3yr), 19.62% (5yr) and 13.6% (since launch). Whereas, Category returns for the same time duration are: 33.68% (1yr), 16.58% (3yr) and 16.06% (5yr).

Fund Manager

The Axis Bluechip Fund is managed by Shreyash Devalkar (Since Nov 23, 2016).

Sector wise and stock wise holding

Axis Bluechip Fund scheme's ability to deliver returns consistently is in-line with most funds of its category. Its ability to control losses in a falling market is high.

The fund has the majority of its money invested in Financial, Technology, Services, Healthcare, Construction sectors. It has taken less exposure in Financial, Technology sectors compared to other funds in the category.

The fund's top 5 holdings are in Infosys Ltd., Bajaj Finance Ltd., ICICI Bank Ltd., Avenue Super marts Ltd., Tata Consultancy Services Ltd..

Expert Comment

As per SEBI’s latest guidelines to calculate risk grades, investment in the Axis Bluechip Fund comes under Very High risk category.

Axis Bluechip Fund belongs to the Equity: Large Cap category of funds. The suggested investment horizon of investing into Axis Bluechip Fund is >3 years. The suggested investment horizon is the minimum time required for holding investments in the fund to reduce its downside risk and ensure that the returns become more predictable.