Axis Bluechip Fund Review and Performance

A wise person had once said, when the going gets tough, the tough get going! This stands true for stocks during market volatility as well but the Axis Bluechip Fund has proved its stability even during such times. Bluechip stocks are better adept at handling such fluctuations and generating higher (or at least stable) returns across market cycles. Read on to know about one of the star bluechip funds in the Indian market – Axis Bluechip Fund.

Axis Bluechip Fund Details

Launched in the year 2013, Axis Bluechip Fund is one of the best schemes in the large-cap category. The core objective of this fund is capital appreciation in the long-run through investments in predominantly equity and related securities (including derivatives). The stock selection criteria revolve mainly around superior asset quality companies at a reasonable price. Almost 87% of the portfolio is invested in stocks of bluechip companies. This makes the fund a good choice for investors with low to medium risk appetite as bluechip companies are traded frequently (hence easy liquidity) and also less affected by market fluctuations. Their proven track record, strong management and robust business models make them capable to deliver consistent and growing returns. The fund size (AUM) has crossed Rs. 9480 crores as on 30th November 2019. 

Axis Bluechip Fund Asset Allocation

The Axis Bluechip Fund Asset Allocation is well-diversified in nature. In terms of sectoral allocation, financial services constitute a major chunk of the portfolio (41.84%) followed by Consumer Goods (15.69%) and Information Technology (15.7%). Big names such as HDFC Bank Ltd, Reliance Industries, ICICI Bank, Kotak Mahindra, Bajaj Finance, Infosys, etc. are part of the issuers for this Fund.

Risk-o-meter

The risk level associated with this fund is “Moderately High”. It is ideal for investors who have a long-term investment horizon.

Axis Bluechip Fund Manager

The Fund is being managed by Mr Shreyash Devalkar since November 2016. He is a market veteran and has rich experience of more than 16 years.

Axis Bluechip Fund Asset Allocation and Performance Scorecard

The Fund has an enviable report card. It has displayed its ability to generate superior and consistent returns over various time periods. It has surpassed the category benchmark (Nifty 50 TRI) returns by a handsome margin 

	Axis Bluechip Fund	Category Average
5-Year	12.32%	9.17%
3-Year	22.62%	14.52%
1-Year	21.9%	13.18%

If you had invested Rs. 10,000 in this fund in 2010, it would be now worth Rs. 22,900 now.

It is a lucrative option compared to other investment avenues as well. If you had invested Rs. 5,000 in a monthly SIP for a period of five years, this is how your money would have grown

	Total Value (In Lakhs)	Gains (In Lakhs)
Axis Bluechip Fund	4.49	1.49
Category Average	3.92	0.92
Fixed Deposits in Banks	3.58	0.58
Gold	3.73	0.73

Final Words

Axis Bluechip Fund is a dependable investment option. It has generated category beating returns since its inception. Moreover, it has not only proved its mettle when the markets are strong but has also displayed its capability to protect losses during choppy times. The fund is highly immune to market fluctuations because of the high-quality large-cap stocks in its portfolio and its low-risk debt position philosophy. Hence, you have a winner in your hands – the potential for superior returns as well as protection during a slowdown. What more could you ask for!

Why you should invest in Mirae Asset Tax Saver Fund

Mirae Asset Tax Saver Fund is among the most popular ELSS funds available in the market. This fund was launched on December 28, 2015, and has been managed by Neelesh Surana. This fund aims to invest in stocks and equity-related instruments across various market caps, investment themes and investment styles to generate long-term appreciation and wealth while providing tax savings under section 80C of the Income Tax Act of 1961.

Neelesh Surana has invested in dominant players in all major sectors, which provides great stability to the portfolio. This is reflected in its high beta of 0.95. The program performed well regularly as compared to benchmarks and peers in the ELSS category. In the last three years, the fund has returned 17.65%.

The main objective of Mirae Asset Tax Saver Fund is to generate a long-term appreciation of capital from a diversified portfolio. Like all other mutual fund plans that save taxes, this fund also does not guarantee any returns, irrespective of its past performance. 

The benchmark for this fund is NIFTY 200. The minimum investment is 500 rupees monthly or quarterly and in multiples of 500 rupees / - thereafter.

One should consider the Mirae Asset Tax Saver Fund because of its allocations which are spread across large caps, mid-caps and small caps in a ratio of 74.32%, 17.56% and 7.33% respectively from its total Assets Under Management.  Cash holdings constitute 0.79% of the total assets. 

This holding composition provides diversification, growth opportunities as well as less volatility to the investment considering that almost all kinds of companies are part of the portfolio in a decreasing correlation with their expected volatility. 

The monthly average expense ratio (including Statutory Levies) as on November 2019 is 2.19% for the regular plan and o.23% for the direct plan. Expense ratio is the commission charged by mutual fund houses from their investors as a fee for their services of the overall management of the fund allocation.

Before investing in a tax saving mutual fund, you have to analyze various risk ratios which offer a peek into the fund’s risk profile. These ratios are Volatility (Standard Deviation), Beta, Sharpe Ratio, Treynor's Ratio and Jenson’s Alpha. 

Ratios (Annualised)
Volatility	12.80%
Beta	0.94
R Squared	0.94
Sharpe Ratio	0.93
Information Ratio	1.16
Portfolio Turnover Ratio	0.59 times

The Net Asset Value (NAV) of Mirae Asset Tax Saver Fund in both growth option and Dividend option is also very lucrative considering the current pricing in the market. 

Net Asset Value (NAV)
Regular Growth	Regular  Dividend	Direct Growth	Direct Dividend
19.025	16.17	20.15	17.258

The performance report of the Mirae Asset Tax Saver Fund shows that its returns have been above the scheme benchmarks and additional benchmarks. 

Performance Report
Period	Returns (%)
	Mirae Asset Tax Saver Fund	Scheme Benchmark	Additional Benchmark
Last 1 Year	8.84	4.42	8.07
Last 3 Year	13.86	10.08	12.92
Since Inception	16.41	11.10	12.59
Value of Rs. 10000 invested (in Rs.) since inception	17,703	14,854	15,616
Scheme Benchmark	NIFTY 200 (TRI)
Additional Benchmark	S&P BSE Sensex (TRI)

The performance report of the Mirae Asset Tax Saver Fund is very impressive. The return on investment of the last one year is 8.84%, last 3 years is 13.86% and from inception, it is 16.41%. If you invested Rs 10,000 in Dec 2015, today your asset value would be Rs 17,703. In comparison, benchmark indices Nifty 200 and S&P BSE Sensex would have returned Rs 14,854 and Rs 15,616 respectively in the same period.

If we compare the last 3-year return on Mirae Asset Tax Saver Fund, scheme benchmark and additional benchmark, the  Mirae Asset Tax Saver Fund has a higher return and it is 13.86% as compared to 10.08% of scheme benchmark and 12.92% of additional benchmarks. From its inception on 28th December 2015, the  Mirae Asset Tax Saver Fund has given the highest return compared to scheme benchmarks and additional benchmarks. it is 16.41% as compared to 11.10% of scheme benchmark and 12.59% of additional benchmarks. 

The SIP performance of Mirae Asset Tax Saver Fund is also very impressive making it a strong contender in the ELSS category.

SIP Performance
SIP Investment	Since Inception	3 Year	1 Year
Total Amount Invested	₹4,70,000	₹3,60,000	₹1,20,000
Mkt Value as of 39th Nov 2019	₹6,29,809	₹4,33,312	₹1,31,370
Fund Return *(%)	15.06	12.43	18.08
Benchmark Return	10.81	9.25	12.34
Additional Benchmark Return	14.07	13.6	16.24

All you need to know about the best Balanced Mutual Funds

Best Balanced Mutual Funds

For a long time, investment experts have recommended balanced mutual funds to both first-time investors and even those who have a low risk appetite. This is because if you are a first-time investor, you might not be prepared to lose money during a volatile phase in the market. Even if you face it head-on, it might discourage you to never invest in the future! This is where balanced mutual funds come to your rescue.

So let’s find out what these balanced funds are and if it’s a good idea to invest in them:

What are balanced funds?

If you are a dilemma and do not know if equity or debt is better for you - then it is best to invest in a hybrid or balanced mutual fund. Of course, your age, risk appetite and the current market conditions play an important role. As an investor, if you are looking for diversification of your portfolio, then balanced mutual funds are your best bet. You can also re balance your portfolio on a regular basis.

When you decide to go for these funds, remember you can enjoy the benefits of both worlds, and at the same time, have a low-risk profile. What happens is that your money is invested in both equity and debt instruments (in a specific ratio) - this helps you to reap the rewards of diversification.

Are these equity or debt-oriented?

Now that’s a valid question. Your funds can either be equity or debt-oriented. If it’s equity-oriented, then a minimum of 65% of assets are in equities and the remaining in debt. If it’s the other way round, then 65% of assets are invested in debt, while the rest are in equities. A big advantage of these funds is that while all other kinds of mutual funds change asset allocation based on the highs and lows in the market; in the case of balanced funds, they behave in line with this ratio.

The`good part is if the market is in a bullish phase, you can reap high returns (thanks to equity); when the market is bullish, the debt component provides a safety net.

Things to remember when going for a balanced fund

If you’ve decided to go for a balanced fund, here are a few things you must keep in mind:

Risk appetite

It must be understood that these funds are not free from risk - yes, the debt component does offer some cushion, but there is an equity component that reacts to market fluctuations. The idea is to know that the risk is not as high as pure equity funds. To get the most out of balanced funds, make sure you keep re balancing the portfolio from time to time.

Moderate returns

As mentioned above, these funds are suitable for those investors who are not willing to take high risks. Historically, those balanced funds that are inclined towards equity have found to deliver moderate returns, generally to the tune of 10-12%. Some of you may ask, why moderate returns? This is because of the equity component that does fluctuate when the market goes through different cycles. Despite that, you know you’re going to get moderate returns - it gives a sense of security!

Expense ratio

When you go for balanced funds, there’s an annual fee that you must incur, called the expense ratio. By definition, it reflects the operating efficiency of the fund and forms an important criterion, especially when you have to select funds. When you decide to invest in balanced funds, make sure you check the expense ratio. If it has a low expense ratio, it is more advantageous - this is because you will have a higher take-home!

Advantages of Balanced Funds

Here are a few advantages of balanced funds:

Low risk: This is a huge advantage and one of the primary reasons why investors go for balanced funds. When the market is bullish, you can increase your exposure to equity, but when it is bullish, you can do the opposite. Balanced funds offer great flexibility and give the opportunity to re balance your portfolio from time to time!

Perfect for medium-term financial goals: If you have medium-term financial goals that can be fulfilled within five to seven years, then balanced funds are the perfect fit. Again, this works well for those who have a low risk appetite, but want a steady stream of income over a certain period.

Taxation benefits: Those funds that have 65% of their assets allocated in equities are taxed as equity funds. You can enjoy tax-free returns on these, in case you hold them for more than a year. In any other case, they are subject to short-term capital gains tax. Some investors also go for the dividend options, since dividends are tax free.

The verdict

Balanced funds are great for wealth creation without putting all the money in equity funds. The idea is to passively invest in equities and at the same time, averting risks in volatile market conditions. Of course, the returns achieved are moderate, but all in all, consistent returns are preferred over sharp losses. Keep re balancing funds to maximize return and reduce risk.