An investor can choose a large cap mutual fund as Axis blue chip fund direct growth. It was incorporated by Axis Mutual Funds in January 2013.
The fund is benchmarked against the S&P BSE 100 India TRI and holds a moderately low risk and expense ratio among the categories.
Axis Blue Chip Fund has completed 11 years from inception and currently holds an AUM of Rs. 33171.04 crore. The direct-growth plan has yielded 15.14% CAGR per year since its inception.
If you had invested 1 lakh in 2013, your fund would have grown up to 3.85 lakhs in 2024.
The minimum lump sum to start investments in this fund is Rs. 100 and the minimum SIP (systematic investment plan) is Rs. 100 per month.
Axis blue chip funds comprise 4 plans,
- Direct Growth Plan (We speak about this plan in this article)
- Regular Growth
- Direct – IDCW (Dividend Plan)
- Regular – IDCW (Dividend Plan)
Here we are sharing the complete details of this bluechip fund that could make any investor the right decision before investing.
Axis Blue Chip Fund Direct Growth NAV:
The current NAV of Axis Blue Chip Fund direct growth is 58.57 (as of February 9, 2024).
The NAV of other plans of the same blue chip funds are,
- Regular Growth – 51.57
- IDCW – Regular Plan – 17.16
- IDCW – Direct Plan – 24.11
During the NFO period, all 4 plans had a NAV of Rs. 10. By the above distinction, you could find the Direct-Growth plan helps grow your funds at higher rates than other plans.
Regular plans are best if you need a professional to manage your fund.
Axis Blue Chip Fund Direct Growth Performance:
Blue chip mutual funds is an open-ended scheme that invests in large-cap companies (Top 100 companies of Indian share market per market capital).
This fund’s objective was to outperform the benchmark (S&P BSE 100 TRI) with comparatively low risk.
The fund has performed at a CAGR of 15.15% per annum since inception vs. 12.86% to S&P BSE 100 (benchmark). The category average has performed at a CAGR of 15.75%.
Axis blue chip fund has outperformed its category average in 2 and 5 years of performance.
The fund has grown 43% higher than the Nifty 50 index since its inception (January 2013).
A short comparison of the fund’s performance with the benchmark and category average follows.
The fund has underperformed in 2 and 5 years returns with a CAGR of 8.73% and 14.74%, respectively.
The 2 years performance of the fund is 6.79% lower than the benchmark and 6.88% lower than the category average.
In the last 5 years of performance, the axis blue chip direct growth fund has performed 1.93% lower than the benchmark and 1.86% lower than the category average.
Over the past year, this particular fund has shown lower performance compared to both its benchmark and category.
Once again, the performance calibration proves that this fund should be invested if your goal is mid or long-term to outperform the category average or benchmark.
Fundamental Analysis Ratios:
P/B – 4.74
P/E – 28.29
Axis Blue Chip Fund Portfolio:
The portfolio of this scheme includes equity (98.6%), Debt (0.9%), and Cash (0.5%).
Equity Holdings(97.44% of total portfolio):
The fund holds 42 company stocks and is subdivided into three types of classes (as per market capital),
- Large Cap Companies – 73.79%
- Mid Cap Companies – 5.34%
- Small Cap Companies – 0%
- Others – 18.31%
Fund Portfolio across Industries:
- Financial – 33.3%
- Technology – 10.4%
- Services – 11.2%
- Energy – 6.3%
- Automobile – 10.3%
- Construction – 10.2%
- Consumer Staples – 5.0%
- Others – 13.2%
Top 20 Holdings:
- HDFC Bank Ltd – 9.23%
- ICICI Bank Ltd – 8.20%
- Bajaj Finance Ltd – 7.21%
- Avenue Supermarts Ltd – 6.09%
- Tata Consultancy Services Ltd – 5.57%
- Reliance Industries Ltd – 5.16%
- Larsen & Toubro Ltd – 4.76%
- Infosys Ltd – 4.25%
- Ultratech Cement Ltd – 3.37%
- Bharti Airtel Ltd – 3.11%
- Tata Motors Ltd – 3.10%
- Nestle India Ltd – 2.78%
- Mahindra & Mahindra Ltd – 2.73%
- Sun Pharmaceuticals Industries Ltd – 2.64%
- Titan Co Ltd – 2.59%
- Cholamandalam Investment and Finance Co Ltd – 2.37%
- Bajaj Auto Ltd – 2.12%
- Kotak Mahindra Bank Ltd – 2.07%
- Bajaj Finserv Ltd – 1.94%
- DLF Ltd – 1.80%
The top 5 securities of this scheme cover 36.3% of the overall portfolio, and the Top 20 securities cover 81.09%
Axis Blue Chip Fund Direct Growth Risk Ratios:
Before investing in a mutual fund, it’s essential to analyze its risk ratio.
Standard deviation, Alpha, Beta, and Sharpe ratio are the parameters we usually calculate to predict the volatility and risk on returns.
Here are the details of the 3-year risk factors of the fund vs. category average.
- Standard Deviation – 13.73 vs. 13.92
- Alpha – (-) 5.47 vs (-) 0.26
- Beta – 0.92 vs 0.94
- Sharpe Ratio – 0.39 vs 0.75
The fund has moderately low risk compared to the category average and benchmark.
Axis Blue Chip Fund Expense Ratio:
The expense ratio plays a crucial role and impacts the performance of any mutual fund scheme.
The expense ratio or TER of Axis blue chip fund direct growth is 0.66%.
The TER of the category average is 1%. This is an important reason why the fund has outperformed both the category average and benchmark in the long term (5+ years).
Here is the expense ratio detail of the same fund with different plans,
- Regular – Growth – 1.57%
- Regular – IDCW – 1.57%
- Direct – IDCW – 0.66%
So, the best plan to choose from this scheme is direct growth. The fund has zero exit loads when redeemed post 1 year, and 1% if redeemed within 365 days.
Axis Blue Chip Fund Managers:
Every mutual fund investor must know about the fund manager and their history.
Two managers manage this fund. Shreyash Devalkar, and Hitesh Das.
Shrevash Devalkar has been managing this fund since 23rd November 2016. He has about 16+ years of experience in the capital market. Before joining Axis AMC, he worked with BNP Paribas Mutual Fund as a Fund Manager, IDFC Captial, JP Morgan Services India, and Calyon Bank. Apart from this fund, he manages 15 more schemes at Axis AMC.
For more details, have a look at the official fact sheet.
Vinayak Jayanath has been managing this fund since January 2023. Before joining Axis MF, he worked with Kotak Mahindra Old Mutual Life Insurance and IDBI Captial. Apart from this fund, he manages 17 more schemes at Axis AMC.
Ashish Naik has been managing this fund since August 2023. Before joining Axis Mutual Fund, he was associated with organizations such as Goldman Sachs and has over 7 years of experience as an Equity Analyst. Apart from this fund, he manages 18 more schemes at Axis AMC.
Conclusion:
- The expense ratio of this fund is lower than the category average.
- This fund is one of India’s top picks in large-cap mutual funds.
- Axis blue chip fund is designed for investors aiming for long-term goals like retirement planning, a dream home, a child’s higher education, and marriage.
- Performance since inception is low compared to the benchmark and category average.
- Maintain a moderately low risk compared to the category average.
- The Portfolios are well diversified across 45 equity securities and a few cash components.
- The fund manager has an outstanding track record.