Axis Long Term Equity is an open-end equity mutual fund that primarily invests in large-cap stocks. These companies are typically well-established and have a strong track record of growth and profitability. The fund’s investment objective is to generate long-term capital appreciation by investing in a diversified portfolio of equity securities. The fund is actively managed, meaning that the portfolio manager makes decisions about which stocks to buy and sell based on their research and analysis.
Investment Objective
Axis Long Term Equity Fund aims to generate capital appreciation by investing primarily in equity and equity-related instruments of companies across market capitalizations. It seeks to invest in companies that have the potential to grow over the long term and are fundamentally sound.
Strategy
- Invests in a diversified portfolio of companies across sectors and market capitalizations.
- Focuses on companies with strong fundamentals, sustainable growth potential, and reasonable valuations.
- Employs a growth-oriented approach, identifying companies that are expected to generate above-average earnings growth.
- Actively manages the portfolio, adjusting the asset allocation and stock selection based on market conditions.
| Asset | Range |
|---|---|
| Equity | 65-100% |
| Debt | 0-35% |
| Cash and Cash Equivalents | 0-10% |
Portfolio Composition
The Axis Long Term Equity Fund primarily invests in Indian equity and equity-related instruments. Its portfolio is diversified across various sectors and industries to manage risk and enhance returns over the long term. The fund’s portfolio composition typically includes:
- Large-cap stocks: These are companies with a large market capitalization, typically over INR 10,000 crores.
- Mid-cap stocks: These are companies with a market capitalization between INR 5,000 crores and INR 10,000 crores.
- Small-cap stocks: These are companies with a market capitalization below INR 5,000 crores.
- Equity-related instruments: These may include convertible debentures, warrants, and other instruments that have equity characteristics.
The fund manager actively manages the portfolio, adjusting the allocation to different asset classes and sectors based on market conditions and the fund’s investment objectives. The portfolio composition provides a balance between growth potential, stability, and risk management.
The fund’s investment strategy aims to identify companies with strong fundamentals, competitive advantages, and growth potential. The fund manager conducts thorough research and analysis to select stocks that are expected to perform well over the long term. The portfolio is regularly reviewed and rebalanced to maintain the desired risk-return profile.
| Asset Class | Allocation Range |
|---|---|
| Equity | 80-100% |
| Debt | 0-20% |
| Equity-related instruments | Up to 20% |
What Type of Fund is Axis Long Term Equity?
Axis Long Term Equity Fund is an open-ended equity mutual fund that invests in large-cap companies in India. It is a growth-oriented fund that seeks to invest in companies with strong growth potential. The fund has a proven track record of delivering superior returns to investors and is one of the most popular equity mutual funds in India.
Returns
The Axis Long Term Equity Fund has generated a return of over 12% over the past five years, which is one of the highest returns among large-cap equity funds in India. The fund has also outperformed its benchmark index, the Nifty 100 Index, by a wide margin.
The fund’s strong returns are attributed to its investment strategy, which focuses on investing in companies with strong growth potential. The fund’s portfolio includes a mix of large-cap companies from various sectors, including financials, IT, consumer goods, and energy. The fund also has a significant allocation to mid-cap and small-cap companies, which have the potential to generate higher returns than large-cap companies.
The following table shows the returns generated by the Axis Long Term Equity Fund over the past five years:
| Year | Return |
| 2018 | 12.5% |
| 2019 | 15.2% |
| 2020 | (-10.2%) |
| 2021 | 20.3% |
| 2022 | 12.8% |
Axis Long Term Equity Fund: Nature and Performance
Nature:
- Open-ended equity mutual fund
- Aims to invest in long-term growth potential of Indian companies
- Primarily invests in large- and mid-cap stocks
Suitability
Suitable for investors:
- With a long-term investment horizon (over 5 years)
- Willing to tolerate market volatility
- Looking for potential capital appreciation
Performance
Historical performance since inception:
| Year | Returns (%) |
|---|---|
| 2021 | |
| 2020 | |
| 2019 |
Note: Past performance is not indicative of future results.
Other notable features:
- Equity exposure typically ranges between 80-100%
- Minimum investment amount: INR 500
- Expense ratio: 1.32% per annum
Alright folks, that’s about all we have for today on Axis Long Term Equity Fund. Hope you got a clearer picture of what this fund is about. Be sure to check back later for more financial wisdom and insights. And remember, investing is not magic, it takes time and patience. Stay tuned and happy investing!