Examining Axis Large Cap Fund: Could It Be India's Top Performing Large Cap Investment Option?
Axis Bluechip Fund: A Consistent Performer in the Large-Cap Equity Space
The Axis Bluechip Fund, an actively managed large-cap fund, has established a strong reputation for its consistent outperformance of benchmarks. Over the past 8 out of 10 calendar years, the fund has beaten its benchmark, the NIFTY 500, and category averages [1][5].
One of the key reasons for its success is its consistent outperformance. Since inception, the fund has delivered compounded annual growth rates (CAGR) returns of around 20%+, outperforming its benchmark and category peers [1]. The fund achieves this through a focused portfolio, experienced management, and prudent risk controls.
The portfolio is concentrated on stable, large-cap stocks with strong fundamentals and sector diversification, helping balance growth with risk [4][5]. The active fund management team identifies undervalued bluechip stocks, contributing to sustained returns. To mitigate volatility while targeting growth, the fund maintains diversification and prudent allocation [1].
Although the fund has shown slight dips over very short periods, it has outperformed the benchmark and largely kept pace with category averages in 1-year and shorter time frames. Over longer periods (3–5 years), the fund’s returns remain strong, indicating it is still a good choice for long-term investors focused on large-cap equity [1].
In March 2020, when large-cap funds corrected around 26% on average, Axis Bluechip was able to limit its fall to 18% [1]. Over the past 10 years, the fund has been the third-best performing fund among its peers, with a CAGR of over 15% [1]. When comparing the 5-year rolling return of Axis Bluechip with the benchmark, it has delivered higher returns on 99% of the occasions [1]. Axis Bluechip has delivered over 10% return for a 5-year period on 89% of the occasions [1].
However, it's worth noting that in 2021 and 2022, the Axis Large Cap Fund underperformed its peers and benchmark [1]. Yet, the fund's sector allocation can be different from the category, as shown by its 13% allocation to financial services companies compared to the category average of 7% [1]. This bottom-up approach in stock selection, focusing on companies with the ability to grow earnings sustainably, sets Axis Bluechip apart.
In conclusion, despite some recent short-term fluctuations, Axis Bluechip Fund’s track record of steady outperformance, quality portfolio, and active management makes it a strong candidate for a long-term large-cap investment. Investors should consider their risk tolerance and investment horizon but can reasonably expect the fund to continue delivering competitive returns over time based on its historical performance and management approach [1][5].
- For investors seeking a consistent long-term growth in the large-cap equity space, the Axis Bluechip Fund, with its focus on investing in undervalued bluechip stocks and prudent risk controls, is a good choice.
- As the Axis Bluechip Fund continues to deliver competitive returns through its experienced management and focused investment strategy, it remains a strong contender for finance professionals seeking lucrative business opportunities in the investing sector.
