The Axis Bluechip Fund is considered one of the best blue chip funds for long term capital appreciation. It is an open-ended equity scheme with 80.21% investment in large-cap stocks and 1.41% in mid-cap stocks. Further, 90.92% of its investments are in stocks of Indian companies. The fund primarily consists of equity and equity-related securities along with derivatives.
Axis Mutual Fund launched the fund’s regular plan in 2010; the direct plan was introduced in 2013.
Investors deliberating – how good is the Axis Bluechip Fund can know the answer by analysing the fund’s past and present performance.
Performance of Axis Bluechip Fund
Since its launch, the fund has generated an average return of 11.22%. Over the last 5 years, it has also surpassed the category average and benchmark index. Its average 3-year return is slated to be around 9.76%, which is approximately 6.13% higher than the category average. The fund’s average 5-year return of 9.05% is also about 3.46% higher than the average of this particular category.
|Assets under management||Rs.15,945 crore as of 31st July 2020.|
|Fund manager||Shreyash Devalkar.
He has been managing the fund since 23rd November 2016. Prior to this, Mr Devalkar was the Equity Fund Manager at BNP Paribas Asset Management India Pvt. Limited. He has also worked with IDFC Securities and JP Morgan.
|Risk level||Moderately high|
|Exit load||1% in case the units are over and above 10% of the investment and are redeemed within a year.|
|Minimum investment||Rs.5,000 in case of lump sum; Rs.1,000 in case of SIP.|
|Expense ratio||1.70% as of 31st July 2020.|
Reasons to Invest in Axis Bluechip Fund
The following are a few reasons why this is the best bluechip fund to invest in –
- Aims to outdo the benchmark
The Axis Bluechip Fund aims to perform better than the benchmark. Investing in it bears lower risk for individuals than the benchmark.
- Ability to create wealth to meet long-term goals
Remaining invested in this fund for more than 5 years will allow investors to earn substantial returns and fulfil long-term objectives. They can use the returns from this investment to meet future goals like planning a wedding, children’s education, financing the purchase of a house or even creating a retirement portfolio.
- Can be an ideal option during inflation
One of the reasons the Axis Bluechip Fund is considered the best blue chip fund for long term is because it can generate long-term wealth even during times of inflation.
- Invests primarily in large companies
The fund predominantly invests in large Indian companies. Consequently, these stocks are less volatile and comparatively liquid. Moreover, these companies have an established business model and track record, which enable them to deliver steady returns.
- Diversified portfolio
30.41% of the fund’s AUM is invested in financial services, 16.96% in consumer goods, 16.64% in IT, etc. This diversification enables the fund to generate high returns as the stocks belong to companies that are traded frequently.
Who Should Invest in Axis Bluechip Fund?
The Axis Bluechip Fund can be the go-to investment option for investors looking for –
- Medium-term investment – Investors who are looking for high returns and ready to invest for 3 to 4 years can opt for this fund. However, they stand a chance to sustain moderate losses.
- Alternative to fixed-income plans – Those who are looking for a medium-term alternative to fixed-income investment options can also opt for this fund.
- An easy investment option – The Axis Bluechip Fund is also an ideal option for those who wish to invest in the stock market but lack the knowledge to do so.
Asset Allocation of Axis Bluechip Fund
|Cash and cash equivalents||0.63%|
Top Companies Under Axis Bluechip Fund
|HDFC Bank Limited||9.12%|
|Reliance Industries Limited||7.93%|
|Tata Consultancy Services Limited||6.58%|
|Bajaj Finance Limited||6.36%|
|Kotak Mahindra Bank Limited||6.12%|
|Bharti Airtel Limited||5.46%|
|Hindustan Unilever Limited||4.61%|
|Avenue Supermarts Limited||4.48%|
|Nestle India Limited||4.04%|
Top Sectors of Axis Bluechip Fund
Why Invest in a Bluechip Fund?
A bluechip fund is a mutual fund that predominantly invests in large companies that are financially stable, are well-known, and have an extensive distribution network. These firms are known for their goodwill throughout the country due to their offering of exceptional quality of products or services.
As a result, these companies can be unsusceptible to economic decline, which makes investing in them considerably less risky.
As these companies are also called bluechip, mutual funds that invest in them are also known by the same name. The term “bluechip” incidentally originates from poker, where blue chips hold the largest denomination.
Bluechip funds are considered the best mutual funds owing to the following advantages –
- These are an ideal investment vehicle for long-term wealth creation.
- Bluechip funds show a historical record of stable return generation.
- These funds are less volatile than medium- and small-cap funds.
- Investors may be able to earn consistent returns even during a market downturn.
The Axis Mutual Fund is called the best blue chip fund for long term owing to these few reasons mentioned above.