Evaluating Axis Large Cap Fund: Is It the Leading Choice for India's Large Cap Investments?
Over the past decade, the Axis Bluechip Fund, also known as the Axis Large Cap Fund, has established itself as a leading large-cap mutual fund in India. With a CAGR of over 15% over the past 10 years, the fund ranks as the third-best performer among its peers [1].
Consistent Strong Returns
The fund's impressive performance is evident in its long-term returns. Since its launch in January 2013, Axis Bluechip has delivered an annualized return of approximately 14.6%, outperforming its benchmark, the BSE 100 Total Return Index [2][3]. Its 3-year and 5-year returns are also robust, around 11.8% and 15.4% respectively [2].
Focused Large-Cap Investment Strategy
The fund's success can be attributed to its focused large-cap investment strategy. The fund predominantly invests in equity and equity-related securities of large-cap companies, which tend to be more stable and less volatile than mid or small caps, aiding in capital preservation and steady growth [4].
Diversified Sector Allocation
Axis Bluechip's diversified sector allocation is another key factor in its performance. As of recent data, the fund has significant exposure to high-growth and resilient sectors such as private banks (20%), IT services and consulting (9%), oil & gas refining and marketing (6.8%), specialized finance (6.4%), and construction & engineering (6.2%) [2]. This diversification reduces sector-specific risks.
Top-Quality Stock Selection
The fund's top holdings include highly reputable and fundamentally strong companies like HDFC Bank (9.57%), ICICI Bank (8.33%), Reliance Industries (6.8%), Bharti Airtel (5.68%), and Bajaj Finance (4.98%) [2]. Such companies have leadership positions and consistent earnings growth.
Relatively Low Expense Ratio
The fund charges an expense ratio of 0.69%, which is lower than the category average of 0.89%, helping improve net returns to investors [4].
Experienced Fund Management and Disciplined Investment Approach
Axis Mutual Fund is reputed for its quality management and stringent investment processes, focusing on value investing and capital preservation alongside growth.
Notable Achievements
- The Axis Large Cap Fund has consistently beaten its benchmark in the past 8 out of 10 calendar years [1].
- Axis Bluechip has delivered over 10% return for a 5-year period on 89% of the occasions [1].
- In March 2020, when large-cap funds corrected around 26% on average, Axis Bluechip was able to limit its fall to 18% [1].
- For a 5-year period, Axis Bluechip has delivered higher returns on 99% of the occasions compared to the benchmark [1].
- In quarters where large-cap funds have delivered negative returns, Axis Bluechip has fallen less than its peers [1].
- Axis Bluechip has outperformed the large-cap benchmark S&P BSE 100 TRI over the long term [1].
In summary, the fund’s strong and consistent long-term performance is due to its large-cap focused, diversified portfolio of fundamentally strong companies, cost-efficient management, and robust risk management aligned with a stable investment philosophy [2][3][4].
[1] Livemint.com [2] Axis Mutual Fund Website [3] ValueResearchOnline.com [4] Morningstar.com
- The Axis Bluechip Fund, known for its large-cap investment strategy, has consistently achieved impressive financial returns over the past decade.
- By focusing on top-quality stock selection, diversified sector allocation, and a disciplined investment approach, the Axis Bluechip Fund has established itself as a leading performer in the Indian business sector.
