{"id":805,"date":"2019-07-30T06:07:29","date_gmt":"2019-07-30T06:07:29","guid":{"rendered":"http:\/\/blog.certifiedfinancialguardian.com\/?p=805"},"modified":"2019-08-03T06:05:15","modified_gmt":"2019-08-03T06:05:15","slug":"axis-bluechip-fund-a-robust-performer","status":"publish","type":"post","link":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/2019\/07\/30\/axis-bluechip-fund-a-robust-performer\/","title":{"rendered":"Axis Bluechip Fund: A Robust Performer?"},"content":{"rendered":"\n

Mid-cap and small-cap stocks plunged\nsignificantly in the past one and a half year and investors are looking at\nlarge caps for some solace, investing directly in large cap stocks or via large\ncap mutual funds. Large-cap funds are ideal for people looking for long-term\ncapital appreciation by investing in equities but with an element of stability.<\/p>\n\n\n\n

Axis Bluechip Fund (erstwhile Axis Equity\nFund) is one such large-cap fund that has been in the limelight for its superior\nperformance over the last few years. The fund has done well under its current\nfund manager Mr Shreyash Devalkar who has been managing the scheme since 23rd<\/sup>\nNovember 2016. <\/p>\n\n\n\n

Categorised under large cap fund, Axis\nBluechip Fund is mandated to hold over 80% allocation to large caps, while the\nremaining can be in mid and small-caps. However, the fund maintains almost zero\nexposure to mid and small-caps.<\/em> It aims\nto outperform the benchmark Nifty 50-TRI while undertaking a lower risk than\nthe benchmark. <\/p>\n\n\n\n

In this brief analysis, we take a close\nlook at the features and performance of Axis Bluechip Fund.<\/p>\n\n\n\n

Investment objective of Axis Bluechip\nFund<\/strong><\/p>\n\n\n\n

The investment objective of the scheme is\nto achieve long-term capital appreciation by investing in a diversified\nportfolio predominantly consisting of equity and equity related instruments of\nlarge cap companies including derivatives.<\/p>\n\n\n\n

Fund Facts Axis\nBluechip Fund<\/strong><\/p>\n\n\n\n

\n Category<\/strong>\n <\/td>\n Large cap Fund\n <\/td>\n Style<\/strong>\n <\/td>\n Growth\n <\/td><\/tr>
\n Type<\/strong>\n <\/td>\n Open ended\n <\/td>\n Market Cap Bias<\/strong>\n <\/td>\n Large cap\n <\/td><\/tr>
\n Launch Date<\/strong>\n <\/td>\n 05-Jan-2010\n <\/td>\n SI Return (CAGR)<\/strong>\n <\/td>\n 11.68%\n <\/td><\/tr>
\n Corpus (Cr)<\/strong>\n <\/td>\n Rs 6,303\n <\/td>\n Min.\/Add. Inv.<\/strong>\n <\/td>\n Rs 5,000 \/ Rs 100\n <\/td><\/tr>
\n Expense Ratio (Dir\/Reg)<\/strong>\n <\/td>\n 0.85% \/ 2.08%\n <\/td>\n Exit Load<\/strong>\n <\/td>\n 1%\n <\/td><\/tr><\/tbody><\/table><\/center>\n\n\n\n

Portfolio Data as on June 30, 2019.
SI Return as on July 23, 2019.
\n (Source: ACE MF)<\/p>\n\n\n\n

Growth Of Rs 10,000, If Invested In <\/strong>Axis\nBluechip<\/strong> Fund 5 Years Ago<\/strong><\/strong><\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Data as on July 23, 2019
\n(Source: ACE MF)<\/p>\n\n\n\n

Every Rs 10,000 invested in Axis Bluechip Fund\nfive years back on July 23, 2014, would have grown to Rs 17,807 as on July 23,\n2019. This translates in to a compounded annualised growth rate of 12.23%. In\ncomparison, a simultaneous investment of Rs 10,000 in its benchmark \u2013 NIFTY 50\n– TRI index would now be worth Rs 15,470 (a CAGR of 9.12%). As can be seen in\nthe chart above, the large-cap fund has been able to generate decent alpha over\nits benchmark in the last 5 years.<\/p>\n\n\n\n

Axis Bluechip Fund: Year-on-Year\nPerformance<\/strong><\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

YTD as on July 23, 2019
\n(Source: ACE MF)<\/p>\n\n\n\n

Launched in January 2010, Axis Bluechip\nFund has a track record of over 9 years. The year-on-year performance\ncomparison of the fund vis-\u00e0-vis its benchmark \u2013 NIFTY 50 – TRI shows that the\nfund has outperformed the benchmark in 8 out of last 9 calendar years. The fund\nunderperformed the benchmark only in CY 2016 when its performance lagged the\nindex by 8 percentage points. The fund has been able to manage its downside\nwell which can be seen in its performance of CY 2011 and 2015. Bulk of the\nalpha was generated in CY 2013, 2014 and 2017. In the current year as well the\nfund has shown decent outperformance over its benchmark.<\/p>\n\n\n\n

Axis Bluechip Fund: Performance\nvis-\u00e0-vis category peers<\/strong><\/p>\n\n\n\n

\n Scheme\n name<\/strong>\n <\/td>\n Corpus (Cr.)<\/strong>\n <\/td>\n 1-year (%)<\/strong>\n <\/td>\n 2-year (%)<\/strong>\n <\/td>\n 3-year (%)<\/strong>\n <\/td>\n 5-year (%)<\/strong>\n <\/td>\n Std Dev<\/strong>\n <\/td>\n Sharpe<\/strong>\n <\/td><\/tr>
\n Mirae\n Asset Large Cap Fund\n <\/td>\n 13,618\n <\/td>\n 6.82\n <\/td>\n 14.33\n <\/td>\n 16.50\n <\/td>\n 19.84\n <\/td>\n 12.20\n <\/td>\n 0.19\n <\/td><\/tr>
\n Axis\n Bluechip Fund\n <\/td>\n 6,303\n <\/td>\n 11.64\n <\/td>\n 17.86\n <\/td>\n 15.30\n <\/td>\n 16.12\n <\/td>\n 12.29\n <\/td>\n 0.20\n <\/td><\/tr>
\n Reliance\n Large Cap Fund\n <\/td>\n 13,076\n <\/td>\n 7.25\n <\/td>\n 14.17\n <\/td>\n 15.15\n <\/td>\n 18.37\n <\/td>\n 13.41\n <\/td>\n 0.16\n <\/td><\/tr>
\n HDFC\n Top 100 Fund\n <\/td>\n 17,912\n <\/td>\n 7.56\n <\/td>\n 12.19\n <\/td>\n 15.04\n <\/td>\n 15.57\n <\/td>\n 13.23\n <\/td>\n 0.17\n <\/td><\/tr>
\n ICICI\n Pru Bluechip Fund\n <\/td>\n 22,117\n <\/td>\n 5.35\n <\/td>\n 12.51\n <\/td>\n 14.42\n <\/td>\n 15.86\n <\/td>\n 11.26\n <\/td>\n 0.14\n <\/td><\/tr>
\n Indiabulls\n Blue Chip Fund\n <\/td>\n 238\n <\/td>\n 5.10\n <\/td>\n 12.30\n <\/td>\n 14.17\n <\/td>\n 14.77\n <\/td>\n 12.88\n <\/td>\n 0.15\n <\/td><\/tr>
\n Canara\n Rob Bluechip Equity Fund\n <\/td>\n 211\n <\/td>\n 8.01\n <\/td>\n 13.13\n <\/td>\n 13.80\n <\/td>\n 14.49\n <\/td>\n 12.23\n <\/td>\n 0.15\n <\/td><\/tr>
\n HSBC\n Large Cap Equity Fund\n <\/td>\n 687\n <\/td>\n 2.93\n <\/td>\n 10.47\n <\/td>\n 13.22\n <\/td>\n 13.43\n <\/td>\n 12.60\n <\/td>\n 0.12\n <\/td><\/tr>
\n IDFC\n Large Cap Fund\n <\/td>\n 435\n <\/td>\n 3.33\n <\/td>\n 11.46\n <\/td>\n 13.21\n <\/td>\n 12.33\n <\/td>\n 12.11\n <\/td>\n 0.11\n <\/td><\/tr>
\n Edelweiss\n Large Cap Fund\n <\/td>\n 166\n <\/td>\n 6.80\n <\/td>\n 13.11\n <\/td>\n 13.07\n <\/td>\n 15.11\n <\/td>\n 12.86\n <\/td>\n 0.12\n <\/td><\/tr>
\n Invesco\n India Largecap Fund\n <\/td>\n 196\n <\/td>\n 5.61\n <\/td>\n 11.97\n <\/td>\n 12.93\n <\/td>\n 16.23\n <\/td>\n 11.78\n <\/td>\n 0.12\n <\/td><\/tr>
\n Aditya\n Birla SL Frontline Equity Fund\n <\/td>\n 21,664\n <\/td>\n 2.46\n <\/td>\n 9.62\n <\/td>\n 12.47\n <\/td>\n 15.81\n <\/td>\n 12.10\n <\/td>\n 0.09\n <\/td><\/tr>
\n Essel\n Large Cap Equity Fund\n <\/td>\n 112\n <\/td>\n 1.44\n <\/td>\n 9.19\n <\/td>\n 12.17\n <\/td>\n 14.08\n <\/td>\n 12.97\n <\/td>\n 0.09\n <\/td><\/tr>
\n UTI\n Mastershare\n <\/td>\n 6,061\n <\/td>\n 5.56\n <\/td>\n 11.20\n <\/td>\n 11.82\n <\/td>\n 14.55\n <\/td>\n 11.59\n <\/td>\n 0.09\n <\/td><\/tr>
\n Tata\n Large Cap Fund\n <\/td>\n 823\n <\/td>\n 4.17\n <\/td>\n 10.26\n <\/td>\n 11.79\n <\/td>\n 14.01\n <\/td>\n 12.36\n <\/td>\n 0.12\n <\/td><\/tr>
\n Kotak\n Bluechip Fund\n <\/td>\n 1,377\n <\/td>\n 4.28\n <\/td>\n 10.19\n <\/td>\n 11.64\n <\/td>\n 15.39\n <\/td>\n 12.32\n <\/td>\n 0.08\n <\/td><\/tr>
\n SBI\n BlueChip Fund\n <\/td>\n 22,679\n <\/td>\n 1.77\n <\/td>\n 9.17\n <\/td>\n 11.63\n <\/td>\n 17.04\n <\/td>\n 12.38\n <\/td>\n 0.08\n <\/td><\/tr>
\n DHFL\n Pramerica Large Cap Fund\n <\/td>\n 339\n <\/td>\n 3.88\n <\/td>\n 10.26\n <\/td>\n 11.58\n <\/td>\n 15.00\n <\/td>\n 11.63\n <\/td>\n 0.11\n <\/td><\/tr>
\n L&T\n India Large Cap Fund\n <\/td>\n 496\n <\/td>\n 3.68\n <\/td>\n 9.72\n <\/td>\n 10.81\n <\/td>\n 14.02\n <\/td>\n 12.34\n <\/td>\n 0.09\n <\/td><\/tr>
\n DSP\n Top 100 Equity Fund\n <\/td>\n 2,803\n <\/td>\n 1.44\n <\/td>\n 7.68\n <\/td>\n 10.71\n <\/td>\n 12.48\n <\/td>\n 13.82\n <\/td>\n 0.06\n <\/td><\/tr>
\n NIFTY\n 50 – TRI\n <\/td> \n \n <\/td>\n 9.12\n <\/td>\n 13.83\n <\/td>\n 13.83\n <\/td>\n 13.20\n <\/td>\n 11.61\n <\/td>\n 0.15\n <\/td><\/tr><\/tbody><\/table><\/center>\n\n\n\n

Returns are on a rolling basis and in %, calculated using Direct Plan \u2013\nGrowth option. Those depicted over 1-Yr are compounded annualised.
\n(Data as on July 23, 2019)
\n(Source: ACE MF)<\/p>\n\n\n\n

*Please note, this table only represents the best\nperforming funds based solely on past returns and is NOT a recommendation.\nMutual Fund investments are subject to market risks. Read all scheme related\ndocuments carefully. Past performance is not an indicator for future returns.\nThe percentage returns shown are only for indicative purposes.<\/strong><\/p>\n\n\n\n

Axis Bluechip Fund has a strong performance\ntrack record and has outperformed its benchmark and category average across 1-year,\n2-year, 3-year and 5-year rolling periods. It stood among top 3 large cap funds\non a 3-year rolling period, while other two being Mirae Asset Large Cap Fund\nand Reliance Large Cap Fund.              <\/p>\n\n\n\n

On risk-return parameters, the fund has\nshown reasonable volatility and is in line with most of the category peers.\nHowever, its risk-adjusted returns are among the best in the category.<\/p>\n\n\n\n

Investment Strategy of Axis Bluechip\nFund<\/strong><\/p>\n\n\n\n

The fund predominantly invests in equity\nand equity related instruments of large cap companies with strong growth and\nsustainable business models, whilst managing risk.<\/p>\n\n\n\n

The fund holds a compact portfolio of 25\nstocks, with emphasis on quality and growth. Its portfolio is built utilising\nthe bottom-up approach, focusing on appreciation potential of individual stocks\nfrom a fundamental perspective. It employs a `Fair value based\u2019 research\nprocess to analyse the growth potential of stocks. The stocks are carefully\nselected to include companies having robust business models and enjoying\nsustainable competitive advantage as compared to their competitors.<\/p>\n\n\n\n

Axis Bluechip Fund\u2019s portfolio is managed\nactively to provide investors a portfolio of strong growth companies. The fund aims\nto utilise a holistic risk management strategy to manage risk associated with\ninvesting in equity markets.<\/p>\n\n\n\n

Axis Bluechip Fund Portfolio\nAllocation And Market Capitalisation Trend<\/strong><\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Holdings (in %) as on June 30,\n2019
(Source: ACE MF)<\/p>\n\n\n\n

Axis Bluechip Fund invests 80-90% of its\nholding in large-cap stocks. Though the scheme has the flexibility to invest up\nto 20% in small and mid-caps it avoids taking any exposure to lower market caps.\nThe cash & debt holding of the fund is in the range of 10-20%. The fund has\nkept itself away from the mid and small cap segment in the current calendar\nyear, which could be due to higher volatility witnessed in this space over the\npast one and a half year.<\/p>\n\n\n\n

Axis Bluechip Fund Top Portfolio\nHoldings<\/strong><\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Holdings (in %) as on June 30, 2019
(Source: ACE MF) <\/p>\n\n\n\n

As of June 30, 2019, Axis Bluechip Fund held\na compact portfolio of 23 stocks, of which 22 stocks belong to large-cap\ncategory. The top 10 stocks constitute 61 of the total holdings and are mainly\nfocused towards Banking and Finance sector. HDFC Bank tops the list with an\nallocation of 9.5%, followed by Bajaj Finance and Kotak Mahindra Bank with an\nallocation of around 9% each. This is closely followed by TCS (7.7%) and ICICI\nBank (5.8%). The other stocks in the top 10 holdings have an allocation in the\nrange of 3.5%-4.7%.<\/p>\n\n\n\n

The fund has a total exposure of 41.8% of\nits assets towards Banking and Finance sector. Banking sector leads the\nsectorial allocation with an allocation of 24.3% while Finance sector comes\nnext with an exposure of 17.6%. Infotech and Consumption follow with an\nallocation of 11.5% and 8%, respectively.<\/p>\n\n\n\n

Top\nContributors<\/strong><\/p>\n\n\n\n

Among the stocks in the fund\u2019s portfolio,\nBajaj Finance contributed the most to its gains in the last 1 year with a\nportfolio return of around 2.2%. The other top stocks which contributed to the\nportfolio gains were HDFC Bank, Tata Consultancy Services, Kotak Mahindra Bank\nand HDFC Ltd.<\/p>\n\n\n\n

The stock that eroded the portfolio gains\nthe most was Maruti Suzuki, pulling down the fund\u2019s return by around 1.7%,\nalong with few others like Bandhan Bank, Avenue Supermarts and Asian Paints.<\/p>\n\n\n\n

Suitability of Axis Bluechip Fund<\/strong><\/p>\n\n\n\n

Large-cap companies are better poised to\nhandle market volatility as compared to mid and small caps and can appreciate\nwealth over long-term. This makes Axis Bluechip Fund suitable for investors\nwith moderately high risk appetite looking for capital appreciation over a\nperiod of 5 years or more.<\/p>\n\n\n\n

The fund has performed consistently well in\nshort-term and long-term period and across market cycles. It outperformed the benchmark\nand category peers with considerable margin across rolling time periods of 1\nyear to 5 years.<\/p>\n\n\n\n

While the fund\u2019s portfolio size and high\nconcentration towards few sectors in top holdings may increase the risk, the\nstability of large caps along with active management of portfolio would enable\nrisk-mitigation. The fund\u2019s focus on selecting companies with strong growth\npotential and sustainable business model would further improve its risk-return\npotential.<\/p>\n\n\n\n

Before you pick a large-cap fund for investment, do weigh all options and make a prudent choice. You need to track its performance by comparing it with the benchmark and category peers across time periods and various market cycles. Furthermore, the scheme should match your risk profile and should be suitable to meet your investment goals. <\/p>\n\n\n\n

This article first appeared on PersonalFN here.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Mid-cap and small-cap stocks plunged significantly in the past one and a half year and investors are looking at large caps for some solace, investing directly in large cap stocks or via large cap mutual funds. Large-cap funds are ideal for people looking for long-term capital appreciation by investing in equities but with an element…<\/p>\n","protected":false},"author":5,"featured_media":814,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cybocfi_hide_featured_image":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/805"}],"collection":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/comments?post=805"}],"version-history":[{"count":10,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/805\/revisions"}],"predecessor-version":[{"id":848,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/805\/revisions\/848"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/media\/814"}],"wp:attachment":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/media?parent=805"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/categories?post=805"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/tags?post=805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}