Does Axis Long Term Equity Fund Accomplishes Your Financial Goals?

Equity Linked Savings Schemes are one of the best ways of saving taxes under Section 80C Income Tax Act 1961 up to Rs 1.50 lac per annum. These schemes can help you save money and create wealth over the long-term. Axis Long Term Equity Fund is one such scheme. The fund was launched 9 years ago and has been one the best performers in its category. The details below will help you save taxes and make an investment in the fund.

A Review of Axis Long Term equity Fund (G).

In 2009, an open-ended ELSS plan was launched with a statutory lock-in period for 3 years. As of June 30, 2018, the fund had an AUM of Rs 17.299 Cr and an expense ratio of 1.77%. The fund aims to provide long-term capital appreciation for investors by saving them taxes. It invests primarily in equity and equity-related securities.

As of July 26, 2018, the average market capitalization of the fund was Rs 90,453.86 Cro. This capital is invested in 53.88% of giant companies, 18.22% large-cap firms, 26.43% mid-cap and 1.46% small-cap businesses.

The fund currently invests in stocks of 34 companies from diversified sectors. These include finance and banking as well as automobile, chemicals, technology and services. It is currently investing in HDFC Bank and Tata Consultancy Services as well as Kotak Mahindra Bank and Pidilite Industries.

Past Performance Analysis:

Since its inception, Axis Long Term Equity has returned 19.22%. This fund has delivered remarkable performance over the years. The fund’s compounded returns over the past three, five and seven years were 12.92%, 24.74% and 19.34%, respectively.

Axis Long Term Equity Fund‘s superior performance has made it a formidable competitor to other funds in this industry. Based on data as of June 30, 2018, the fund had an alpha of 1.3%.

The fund has outperformed both its benchmark, S&P BSE200, and its category in all years except 2016, which saw negative returns. It has returned to its benchmark in 2017 with returns of 37.44%, beating it by a mere 0.6%. With 66.18%, 2014 was the year with the highest return. The fund has not experienced a severe bear market and it remains to be seen how it will fare in such conditions.

Fund Manager:

Since April 2011, Mr JineshGopani has managed Axis Long Term Equity Fund Growth. His strategies and convictions are proving to be effective in the management of the fund. It is the second-largest AUM fund in ELSS. He insists that the money be invested in stocks with high quality names at a fair price.

He favors large-cap stocks, with 50 to 70% of his corpus remaining in them and the rest in mid- and small-cap firms. He currently holds the position of head of equity in the Axis Mutual Fund. He has 16 years experience in financial services, including 8 years in portfolio and equity management, fund management, and equity research.

Investors’ Suitability:

This fund is ideal for investors who wish to reduce taxes and make money long-term. The fund has been used to invest in debt instruments and money market securities in order to maintain a minimum amount of liquidity. You can achieve various financial goals by using this fund.

As of July 26, 2018, the NAV for Axis Long Term Equity Fund (G) was Rs 45.1237. The fund is available for investors to invest by SIP or lumpsum. The minimum investment in the fund is Rs 500. It is not available for less than 3 years.