Mutual funds are often considered a suitable way to build wealth gradually. One fund that’s caught the attention of many investors is the Axis Bluechip Mutual Fund, which primarily invests in large-cap companies. So, what makes this particular fund stand out for investors? Here are six key points to consider about the Axis Bluechip Mutual Fund.
Investment Objective and Strategy
The Axis Bluechip Fund primarily invests in various large-cap firms, generally called “blue chips”, to generate wealth over the long run. In contrast to mid- or small-cap stocks, the Axis Bluechip Fund typically invests in well-known, established companies with consistent earnings records.
As a result, these kinds of investments are often viewed as more secure investments, which attract investors who wish to gain without taking on excessive risk.
Risk Profile
Axis Bluechip Fund investments are rated as having a “Very High” level of risk because of the unpredictability of equity markets. While large-cap funds are likely to be more stable than mid- and small-cap funds, there is always potential for market swings.
Those who can invest for a long time—ideally five years or more—are best suited for this fund, as short-term investments can fail to generate the highest returns.
Performance Overview
Since its launch on January 5, 2010, the Axis Bluechip Fund has continuously produced impressive returns. As of March 31, 2024, its annualised return is a solid 12.97% since its launch.
The fund has returned an astounding 30.30% in the last year alone, beating several other large-cap funds. The fund’s ability to deal with market fluctuations and grab growth opportunities inside the large-cap market can be seen in its success.
Expense Ratio and Fees
The Axis Bluechip Fund charges a regular plan fee of 1.56% as of July 31, 2024, which is slightly more than the category average, which is 0.89%. The cost of fund management is covered by this charge, which is calculated as a percentage of the fund’s total assets.
The direct plan of the same fund has a cheaper fee of 0.64% and can be a better option for conservative investors. An additional 1% exit fee is charged for selling units within a year but only applies to amounts exceeding 10% of the initial investment.
Portfolio Composition
As of March 31, 2024, the Axis Bluechip Fund has about 98.12% of its assets invested in stocks and a smaller amount allocated to debt and cash equivalents. This strategy displays the fund’s primary focus on equity investments, particularly in large-cap stocks.
Major companies from a variety of sectors, especially the financial sector, which holds 28.96% of the overall allocation, are typically among the fund’s top holdings, which contributes to portfolio diversification. This strategy is excellent for reducing risk while also maintaining growth by allocating funds to different sectors.
Minimum Investment Requirements
The Axis Mutual Funds have a low minimum investment requirement for those who are thinking about investing. A lump payment of ₹100 is the least amount that investors can start with. This amount also applies to additional investments and systematic investment plans (SIPs).
For those who want to start with the equity market, the fund is an attractive option due to its low entry threshold.
Conclusion
The Axis Bluechip Fund positions itself as a suitable choice for sustainable growth by focusing on large-cap equities. It helps with wealth accumulation because of its consistent performance, wide range of holdings, and accessibility.
However, before investing, investors should carefully assess their time horizon and risk tolerance as this fund is generally considered to be a risky investment due to market shifts.
