Home Investment What are the benefits of investing in Axis Bluechip Funds?

What are the benefits of investing in Axis Bluechip Funds?

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Axis Bluechip Fund Direct Plan-Growth is a scheme of mutual funds launched by the Axis Mutual Fund. The scheme was launched for investors on 01 January 2013. Shreyesh Dewalkar is the current fund manager for Axis Bluechip Fund Direct Plan (G). The fund currently has an Asset under Management (AUM) of Rs. 11.077 Cr, and the new NAV is Rs. 34.44 as of February 28, 2020.

Axis Bluechip Fund Direct Plan -(G) is rated moderately high risk. The minimum investment in SIP is 500. The minimum investment in Lampsum is 5000. With units above 10 percent of the investment, 1 percent will be charged for redemption within 12 months.

Purpose of the Axis bluechip funds

Achieving long-term capital appreciation by investing in a diversified portfolio consisting primarily of equity-related securities and bonds, including derivatives. However, there can be no assurance that the scheme will achieve its investment objective.

Pros & Cons of Axis Bluechip Fund

The fund has surpassed the benchmark index (12.33 percent) and the category average (12.21 percent) with a 7-year return of 14.86 percent. The scheme has an outstanding out-performance track record. It emphasizes the quality and growth of its stock picks, preferring firms with better stock-flow and greater earnings visibility. While the scheme continues to maintain a compact portfolio, in recent times, there has been a sharp reduction in the number of stocks in response to current market conditions, where only a select few stocks are doing well. The fund has proved to be a reasonable bid in this category.

Benefits of investing in Axis bluechip funds

It has two main advantages:

Suitable for investors with moderate / low-risk appetite– Investors with a relatively low-risk appetite can invest in Axis bluechip fund because they are more consistent and offer stable returns.

Investing in the Big League– When you invest in a large-cap fund scheme, you invest large amounts of money. Such companies are market leaders, and thus the investor confidence factor in these funds is high.

Other benefits-

  • Risk is lower compared to the benchmark
  • Axis Bluechip has a low expense ratio
  • One year returns are higher than the benchmark
  • Three years of returns are higher than the benchmark
  • Five years of returns are higher than the benchmark

    Disadvantages of investing in Axis bluechip funds

Comparatively lower returns– returns in the equity segment are lower than in other funds. But being less volatile, this fund comes with its benefits. Therefore, investors who prefer to get higher returns in return for risk should not opt for this fund.

High exit load– For units that exceed 10 percent investment, 1 percent will be charged for redemption within 1 year. There is no charge for exhaust load over 1 year.

Note: If you want to invest in an Axis Bluechip Fund Direct Plan-(G) that offers good returns and is willing to invest for four years or longer, then Axis bluechip can be an excellent option.