Every week, we will talk about one fund that has exceeded expectations.

A fund which has off late performed brilliantly at the market

This week, its Axis Bluechip Fund – Direct – Growth, managed by Axis Asset Management Company Ltd.

Now, you must be thinking why I chose this large-cap mutual fund over hundreds of mutual fund schemes available in the Indian market?

Let’s talk about the fund in detail and see what it has to offer.

Read More: Axis Long Term Equity Fund Vs. ICICI Prudential Long Term Equity Fund: The better ELSS fund

 Key Details

Before you start investing in any mutual fund scheme, you need to know some of its important features. 

Key information about this fund is as follows:

Launch Date 1 January 2013
NAV (5th September 2018) ₹30
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹2234 Cr
Riskometer Moderately High
Minimum SIP ₹1,000
Minimum SWP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY 50 Total Return since its launch.
Age of the fund 5 years old
Expense Ratio 0.94%
Exit Load If redeemed between 0 Days to 365 Days; Exit Load is 1%;
Type  Open Ended

Axis Bluechip Direct Fund comes under the equity-oriented large-cap scheme.

Large-cap mutual funds mostly invest in companies with a large market capitalization and they are generally the top 100 companies in a market.

Performance

This fund has given a very good return since its launch and is less risky in the large-cap category due to its additional diversification.

The ideal tenure of investment is more than 5 years, if you want a potential return from this fund.

Returns per annum 

Duration Returns
1 year 19.1%
3 years 17.4%
5 years 19.7%
Since launch 17.2%

As seen from the historical data, this fund has given decent returns over the years and has consistently outperformed its benchmark.

While the fund has undoubtedly scored high on the performance front, it has also managed to keep its risk metrics lower than the benchmark, thereby resulting in an improved risk-reward profile.

Also Read: Axis Mutual Fund: Details of a Very Reputed Mutual Fund Company

Comparison

Let us compare this fund with other top 3 contenders in the large-cap category.

Other top Funds Returns over the years Min SIP Investment Fund Size (Cr) Rating
1Y  3Y 5Y
SBI Bluechip Fund – Direct – Growth 7.8% 14.6% 21.7% ₹ 500 ₹ 19,064 4
Reliance Large Cap Fund – Direct – Growth 14.7% 16.5% 23.1% ₹ 100 ₹ 10,126 4
ICICI Prudential Bluechip Equity Fund – Direct – Growth 15.6%  16.2% 21.6% ₹ 100 ₹ 16,539 4

As seen from the table, Axis Bluechip Direct Fund is easily one of the best performing large-cap funds in the market today and its AUM is also less as compared to its peers.

With consistently high returns, this fund has managed to outperform nearly all its competitors in the last 1 year. This fund is perfect for you if you want a consistent spell of returns

Unlike its peers, the scheme’s exposure to mid-cap stocks has been reduced to 6% and it has taken its share of large-sized companies to over 90%.

Hence, in the past year, when returns from mid-sized companies fell, Axis Bluechip Fund’s returns did not fall as much as its competitors.

Portfolio

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

There are two parts to the portfolio.

  • Holdings
  • Sector

Top 5 holdings of this fund are

The top 5 equity holdings of Axis Bluechip Equity Fund are

Name of the Instrument Industry % to NAV
HDFC Bank Ltd. Financial Services 9.8%
Kotak Mahindra Bank Ltd. Financial Services 8.1%
Housing Development Finance Corporation Ltd. Financial Services 6.8%
Tata Consultancy Services Ltd. IT 6.1%
Bajaj Finance Ltd. Financial Services 5.9%

HDFC Bank stocks are at the highest, with ₹ 218 crores, occupying about 9.8% of the asset. The top 5 holdings account to about 36.7% of the total mutual fund.

Top 5 equity sector allocation

Sector allocation Current % NAV
Financial service 43.7%
Consumer Goods 15.7%
Automobile 14.2%
IT Service 10.3%
Pharma 16.1%

The fund manager primarily looks for strong management, robust fundamentals, sustainability, and business demand before including any stock into the portfolio.

This has resulted in the fund having a higher exposure to domestically oriented sectors, such as financial services, consumer goods and auto ancillaries accounting for nearly 75% of the total portfolio.

Fund Manager

One of the key reason for this scheme’s stellar performance over the last 1 year is its fund manager.

This scheme is managed by Mr. Shreyash Devalkar.

Shreyash Devalkar joined the fund house in November 2016, focused on quality and growth companies which were in sync with the flavor of the market.

Education – He is a B.Tech graduate from UDCT Mumbai and PGDM (Management) from JBIMS Mumbai University

Experience – Prior to joining Axis Mutual Fund, he has worked with BNP Paribas Mutual Fund, IDFC Capital, JP Morgan Services India and Calyon Bank.

Funds Managed

Salient Features

Some salient features of these schemes are:

Investment Objective

To achieve long-term capital appreciation by investing in a diversified portfolio, predominantly consisting of equity and equity-related securities of large-cap companies.

However, there can be no assurance that the investment objective of the scheme will be achieved.

Investment philosophy

The investment philosophy of Axis Bluechip Fund is built on three pillars. They are:

In terms of risk, Axis Bluechip Fund – Direct is amongst the fund with the lowest volatility in the large-cap category. The standard deviation, which measures the risk, is much lower than the benchmark and top competitors in the category.

In Conclusion

Axis Bluechip Fund, which invests primarily in large-cap stocks, has beaten its peers in the past year by a wide margin.

It has given close to 20% returns in a year, while its peers have generated returns in the range of 7-15%.

Performance over the last year and consistency has made this scheme fund of the week.

So, if you are thinking of investing a lump sum amount for a period of around 5 years, Axis Bluechip Fund – Direct is the perfect choice for you.

Large-cap funds may give you good returns on your lump sum investment over the long-term.

Investing in mutual funds online is very simple and paperless. Simply log in to your Groww account, choose a fund, and invest using net banking – exactly like you would when shopping online.

To look at some of the best performing funds from every category of mutual funds, check out Groww 30: Top funds in every mutual fund category.

Happy Investing!