Looking to invest in a mutual fund?

But not sure which mutual fund is the best?

Well, this article can help.

The Axis Long Term Equity Fund is managed by Axis Asset Management Company Ltd. The fund manager is Jinesh Gopani.

On the other hand, the ICICI Prudential Long Term Equity Fund is managed by ICICI Prudential Asset Mgmt.Co. Ltd and is managed by George Heber Joseph.

This had initially started off as ICICI Prudential Tax Plan but was later renamed to ICICI Prudential Long Term Equity Fund in 2015.

Let’s have a closer look at how each of these mutual funds perform.

Axis Long Term Equity Fund vs. ICICI Prudential Long Term Equity Fund

1.Scheme

Both, the Axis Long Term Equity Fund and the ICICI Prudential Long Term Equity Fund come under the same class of funds. They are both ELSS funds that contribute in your tax saving under Section 80C.

Along with tax benefits, as an investor, you also get to enjoy capital benefits from these funds.

The funds from both Axis and ICICI are open-ended, which means that the units can be purchased or sold at the discretion of investors.

The minimum investment for both these funds are also same – Rs. 500.

However, the big difference between the two funds is noted in the AUM.

As per the latest updates, the fund size of Axis Long Term Equity Fund is Rs. 17,299 crores while  ICICI has a fund size of is Rs 5,258 Cr crore.

2.NAV details

As per the latest records, the NAV noted for Axis Long Term Equity Fund is Rs. 48.70 per unit. This value is toggling near the 52-week high which was recorded at Rs. 49.637 just about a few days back.

On the other hand, the fund from ICICI stands tall at Rs. 404.8  per unit.. The 52-week low of this fund was noted in September 2017 at Rs. 320.610.

3.Returns

Let us now consider the returns generated by these two funds, with returns over 1 year being annualized.

While the ICICI Prudential Long Term Equity Fund has proven to be more effective in the 5 year investment period, Axis has a lot to offer in the 1 year and 5 year segments.

When it comes to the 6-month sphere, Axis tends to fair better than ICICI by giving 13.9% as compared to the latter’s 9%.

The returns per annum are as follows:

Axis Long Term Equity Fund

Year 1 21.10%
Year 3 16.00%
Year 5 28.70%
 

 

ICICI Prudential Long Term Equity Fund

Year 1 20.50%
Year 3 15.00%
Year 5 23.60%

Overall, while ICICI Prudential Long Term Equity Funds take long leaps and jump with regards to its returns from a period of 3 months to 5 years, Axis proves to continuously maintain a steady and has a high return rate.

4.Portfolio

One of the primary things that investors focus on while looking for the ideal mutual fund is the portfolio of the respective fund.

There are two parts to the portfolio. This includes the holdings and the sector.

Holdings: The top 5

The top 5 holdings for Axis Long Term Equity Fund are:

  • HDFC Bank
  • TCS
  • Kotak Mahindra
  • HDFC
  • Pidilite Ind.

HDFC Bank features as the highest holding with Rs. 1,765.40 crore, occupying about 9.67% of the asset. The top 5 holdings account to about 37.7% of the total mutual fund.

The top 5 holdings for ICICI Prudential Long Term Equity Fund are:

  • ITC
  • SBI
  • NTPC
  • ICICI Bank
  • Wipro

This 5 account for about 23.29% of the total asset. The highest holding is ITC, which stands valued at Rs. 389.34 crores and holds 7% of the total asset.

Sectors: The top 3

Based on the holdings, it is safe to say that the Axis mutual fund relies more on three primary sectors, namely banking/finance, automotive and technology, with a total of 63.71% from these sectors.

Apart from this, this fund also invests in chemicals, pharmaceuticals, and cons durable. On the other hand, the ICICI counterpart also takes a lot of interest banking/finance, pharmaceuticals and automotive.

These three sectors account for 38.83% of the total asset of the fund.

The other sectors include tobacco, telecom, and utilities with a slightly lower dependence on a these sectors.

In Conclusion

As is evident, both Axis Long Term Equity Fund and ICICI Prudential Long Term Equity Fund are good options and provide a range of benefits.

However, if we’re to choose one, we would suggest you to go for Axis Long Term Equity Fund if you have short term goals in mind.

On the other hand, if you are investing keeping in mind long-term returns, ICICI Prudential Long Term Equity Fund is the right choice and should prove to be the better choice.