Best BOI AXA Equity Mutual Funds

BOI AXA Investment Managers Private Limited is a joint venture between AXA Investment Managers and the Bank of India. This amalgamation resulted in bringing together the global expertise of AXA in finance management and the vast experience and network of BOI. As of 31st MAY 2021, this AMC had an AUM of Rs.2255 crores.

This AMC currently offers more than 10 mutual fund schemes distributed among equity, debt and hybrid fund categories. This includes the best BOI AXA equity mutual funds.

Equity mutual funds or stock funds are instruments that predominantly invest in shares and stocks of companies in specific proportions. A minimum of 65% of assets is invested in the stocks and shares of companies, while the remaining 35% might be invested in money market or debt instruments. 

A client invests money in the equity fund via lump sum or a systematic investment plan (SIP). This is invested into various equity stocks on behalf of the client. The resulting profits and losses collected in the portfolio impact the NAV or Net Asset Value of the client’s fund. Besides several other technicalities involved in investing in an equity mutual fund, this defines the crux of equity mutual fund investments.

Equity mutual funds generate high returns by investing in stocks of firms across every market capitalisation. A substantial risk factor accompanies these funds, but they deliver high ROI compared to hybrid and debt funds. A major benefit of investing in the top BOI AXA equity mutual funds is that the client does not select shares or stocks to invest in as the fund manager is responsible for it.

Primarily, equity mutual funds can be categorised into active and passive funds. Apart from these, they can also be segregated into other classes as well. For instance, they can be classified according to market capitalisation, which defines how much the capital market values an entire company’s equity. 

In terms of market capitalisation, these funds can be classified as mid-cap, large-cap, micro or small-cap funds. Equity funds can also be classified as diversified or thematic/sectoral. A diversified equity fund makes investments in stocks spread across the whole market. On the other hand, a thematic or sectoral fund keeps its investments restricted to a specific theme or sector such as Infrastructure or Infotech.

Taxability

Nonetheless, in the broader equity MF category, individuals can around 5 schemes by BOI Axa. And while being aware of the above data related to the best BOI AXA equity mutual funds is important, investors must also keep in mind the taxability involved.

Short-term Capital Gains Tax: A client earns short-term capital gains or STCG after redeeming the equity fund units within a year of holding.  A 15% STCG tax is levied on these capital gains irrespective of the client’s income tax category.

Long-term Capital Gains Tax: A client earns LTCG or long-term capital gains on redeeming the equity fund units after a holding period of 1 year or more. If these capital gains amount to a limit of Rs.1 lakh in a year, they are eligible for tax exemption. However, if these gains exceed this limit, they are levied with a 10% LTCG tax without indexation benefits.

TDS: As per section 194K, clients must note that TDS at 10% is applicable if the dividend income is more than Rs.5000 for a given financial year.

Factors to Consider Before Investing

Clients must now consider the following parameters associated with the best BOI AXA equity mutual funds with the above taxability section sorted.

Risk appetite: Clients must be aware that equity mutual funds come with substantial risk factors. Hence checking one’s risk appetite in order to select an apt scheme from the best BOI Axa equity mutual funds 2023 is of utmost importance. A particular client’s risk tolerance is a highly subjective matter. His/her financial condition, along with several other associated factors is responsible for determining one’s risk appetite.

Experience of the fund manager: A majority of the clients, especially the experienced ones, put considerable emphasis on a fund manager’s expertise. This is because the performance of the best BOI AXA equity mutual fund is highly dependent on the fund manager’s competence. Therefore, these managers are judged based on their experience level, ability to read the market conditions, etc.

Expense ratio: Fund managers and equity mutual fund houses demand a certain fee from the clients for managing the portfolio. This fee is termed the expense ratio, which includes the recording keeping fees as well. 

Budding investors might find it daunting to venture into the investment domain. Selecting a suitable scheme among the best BOI AXA equity mutual funds might prove to be tricky for them. However, consulting this article as a guide along with an elementary knowledge of mutual funds would enable them to make an informed decision.