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Fund outperformed benchmark over seven years

The fund delivered higher average daily returns over the past three years compared with the benchmark and peers with relatively lower volatility

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The fund was launched in January 2010 as Axis Equity Fund and featured in the diversified funds category of CRISIL Mutual Fund Ranking (CMFR) up to December 2017. Subsequent to the reclassification of mutual funds by Sebi, it was renamed Axis Bluechip Fund and repositioned as a large-cap fund. It has featured in the top 30 percentile of the large-cap category in CMFR for the two quarters ended September 2018.

Shreyash Devalkar has been managing the fund since November 2016. The fund's assets under management (AUM) increased from Rs 1,949 crore in November 2015 to Rs 2,927 crore in October 2018. The investment objective of the scheme is to achieve long-term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity-related securities of large-cap companies including derivatives.

Trailing returns

The fund has consistently outperformed the benchmark (Nifty 50 TRI) and the category (represented by funds ranked in the large cap category in CMFR - September 2018) across the past one-year; two-, three-, five- and seven-years trailing periods.

An investment of Rs 10,000 in the fund on January 05, 2010 (inception of the fund) would have grown to Rs 26,250 (11.41% CAGR) on December 10, 2018 vis-à-vis the benchmark's Rs 22,163 (9.32% CAGR) and the category's Rs 22,415 (9.46% CAGR).

SIP returns

A monthly investment of Rs 10,000 via a Systematic Investment Plan (SIP) for seven years would have grown to Rs 13.39 lakh (XIRR 13.31%). A similar investment in the benchmark would have grown to Rs 12.44 lakh (XIRR 11.21%).

Risk-reward matrix

The fund delivered higher average daily returns over the past three years compared with the benchmark and peers with relatively lower volatility.

Portfolio analysis

During the past three years, the fund predominantly invested in large cap stocks, averaging 78% of the portfolio. Allocations to mid-cap and small-cap stocks averaged 10.5% and 2.8%, respectively.

At the sectoral level, top five sectors averaged 66.07% of the fund's equity portfolio in three years. The key sectors were banks with an average allocation of 26.18%, followed by finance (12.46%), auto (10.51%), consumer non-durables (9.18%) and software (7.74%).

In October 2018, banks (27.31%) were the biggest constituent of the fund's equity portfolio, followed by finance (16.94%), software (13.04%), consumer non-durables (12.07%) and auto (9.27%).

The biggest contributors to the fund's performance during the period under analysis were HDFC Bank, Kotak Mahindra Bank, Maruti Suzuki and HDFC Ltd. The fund invested in 89 stocks in three years and held four consistently. The stocks with the highest contribution to the fund's performance were consistently held during the period under analysis and outperformed the benchmark.

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