Axis Long Term Equity Fund aims to provide long term capital appreciation and income to its investors through systematic investment in equity related instruments and debt and other money market instruments. The Fund does not guarantee that it achieves all of its goals, but will continue to strive to achieve them.
Axis Long Term Equity Fund Investment Philosophy
The Axis Long Term Equity Fund employs an investment growth style, which focuses more on the future potential of the stock than the current market value. To select stocks, the fund uses a combination of bottom-up and top-down analysis. The Axis Long Term Equity Fund actively seeks out stocks of companies showing strong trading practices and other managerial capabilities.
Axis Long Term Equity Fund –Performance
The Axis Long Term Equity Fund was launched in December 2009 and has consistently surpassed its benchmark and range since its inception. The scheme fund saw its best performance between September 2013 and September 2014. The fund carries an alpha of 0.44, which is higher than the average range of -0.12. The fund also has a beta of 0.93, which is slightly lower than the category average of 0.96. The fund’s alpha and beta demonstrate its ability to produce highly-anticipated returns from the fund, providing excellent stability.
The fund yield well in bullish markets and minimizes losses during the bearish market cycle. The fund performs best in 5-year investment cycles. The trailing returns of the fund were given against its category and benchmark.
Asset Allocation
It is an actively managed Equity Mutual fund with a large-cap bias. Since it is an equity mutual fund, the fund will invest at least 80 percent of its assets in equity and equity-related instruments as per its mandate; the fund can invest up to 20 percent in debt and other money market instruments.
Investor suitable for Axis Long Term Equity Fund
The Axis Long Term Equity Fund is an equity mutual fund what is a 1099 that invests primarily in large-cap corporate stocks, which are also exposed to market volatility due to exposure to equity. Compared to small-cap or mid-cap funds, the volatility of this fund is weak, but still present.
The Axis Long Term Equity Fund is suitable for investors who have a hunger for moderate risk. Since it is an ELSS, which carries a 3-year lock-in period, it serves as a benefit to the investor, as this fund can reward the investor over an investment cycle of 3 years or more.
Conclusion: The Axis Long Term Equity Fund is an open-ended, actively managed equity mutual fund that primarily invests in stocks of large-cap companies. The fund seeks to provide long-term capital appreciation to its investors through systematic investment.
Since it is an actively managed fund, it can dynamically change the structure of its investment to suit current market conditions and to take advantage of market opportunities. Under Section 80C of the Income Tax Act, 1961, the Axis Long Term Equity Fund is an equity-linked savings scheme (ELSS) and provides taxability to its investors.
