Large-cap funds encourage stability and long-term growth, whereas flexi-cap funds balance their investments across different firm sizes. The larger the risk, the greater the gains in flexi cap. In this blog, we are going to explore the two funds that are giving great opportunities at each segment including Axis bluechip fund and Parag Parikh Flexi cap.
Axis Bluechip Fund and Parag Parikh Flexi Cap: Overview
Overview of Axis Bluechip fund
If you prefer secure and harmless investments with regular long-term returns, try this fund. It focuses on investing in solid, well-established companies to produce steady returns even during market drop. It provides two plans: Axis Bluechip Regular & Direct Growth Plan. The Direct Plan is the essential difference since it allows you to invest directly in the fund without paying broker commissions.
Axis Bluechip Fund
|
Name |
Axis Bluechip Fund |
|
Category |
Large-cap fund |
|
Expense Ratio (Regular Plan) |
1.57% (as of April 2nd, 2024) |
|
Expense Ratio (Direct Plan) |
0.66% (lower than the category average of 2.05% |
|
Exit Load |
1% if redeemed within 1 year |
|
AUM (Fund Size) |
RS.32,646 Crores |
|
Benchmark |
S&P BSE 100 Trillions |
Overview of Parag Parikh Flexi cap
It focuses on investing in flexi-cap funds by diversifying across different stocks and assets, the fund aims to balance risk. While mid or small-cap investments can be risky, any losses may be offset by the stability of large-cap investments. Overall, flexi-cap funds provide opportunities across different market segments, with most of the capital typically allocated to large-cap stocks.
Parag Parikh Flexi cap Fund
|
Name |
Parag Parikh Fund |
|
Category |
Flexi cap fund |
|
Risk Level |
High |
|
Expense Ratio (Direct plan) |
0.83% |
|
Exit Load |
2% if redeemed within 1 year |
|
AUM (Fund Size) |
RS.58,901 Crores |
|
Investment Duration |
Best for long-term investment |
Axis Bluechip Fund and Parag Parikh Flexi Cap – Performance
Performance of an Axis Bluechip Fund Direct Plan-Growth Scheme:
Returns and ranks as of 3rd April 2024
| Period | 6 months | 1 Year | 3 Year | 5 year | Returns |
|---|---|---|---|---|---|
|
Scheme |
23.66% |
42.88% |
21.71% |
18.67% |
16.64% |
|
Nifty 100 |
19.77% |
34.54% |
15.61% |
14.56% |
N/A |
Regular Plan Scheme Performance:
Returns and ranks as of 3rd April 2024
| Period | 6 months | 1 Year | 3 Year | 5 year | Returns |
|---|---|---|---|---|---|
|
Scheme |
17.86 % |
31.58 % |
11.87% |
14.00% |
12.68% |
|
Nifty 100 |
18.69 % |
34.23% |
15.51% |
14.41% |
- |
Performance of a Parag Parikh Flexi cap fund:
Returns and ranks as of 2nd April 2024
| Period | 1 Year | 2 Year | 3 year |
|---|---|---|---|
|
Trailing returns |
40.07% |
22.23% |
22.69% |
|
Since launch |
19.55% |
19.55% |
19.55% |
While comparing both funds, Axis mutual fund has delivered a steady return for long-term investors even through market volatility. Parag Parikh also proves its sustainability and potential to outperform the respective benchmarks over a long period.
Axis Bluechip Fund and Parag Parikh Flexi Cap – Risk Analysis
Let’s examine the risk analysis before investing as below:
Risk analysis of Axis Bluechip Fund:
| Ratios | Value | Category Average |
|---|---|---|
|
P/E ratio |
26.5 |
21.6 |
|
Price to Book |
3.97 |
3.25 |
|
Price to Sales |
3.39 |
2.6 |
|
Price to free cash flow |
17.24 |
14.33 |
|
Dividend Yield |
0.86 |
1.28 |
|
5 years of earning growth |
18.76 |
19.31 |
Technical Analysis:
| Title | Value | Action | Buy |
|---|---|---|---|
|
Moving Averages( MA 5) |
54.900 |
54.978 |
Strong Buy |
|
Momentum Oscillators ( RSI 14) |
60.583 |
- |
Strong Buy |
|
Trend Oscillators ( Bull or Bear Power 13) |
1.1460 |
- |
Strong Buy |
|
Volatility ( ATR 14) |
0.2364 |
Less volatility |
Strong Buy |
Risk analysis for Parag Parikh Flexi Cap fund:
| Ratios | Value | Category Average |
|---|---|---|
|
P/E ratio |
17.12 |
23.4 |
|
Price to Book |
3.21 |
3.43 |
|
Price to Sales |
4.19 |
2.83 |
|
Price to free cash flow |
16.27 |
16.5 |
|
Dividend Yield |
2.07 |
1.19 |
|
5 years of earning growth |
35.58 |
27 |
Technical Analysis(Direct):
| Title | Value | Action | Buy |
|---|---|---|---|
|
Moving Averages( MA 5) |
77.902 |
77.967 |
Strong Buy |
|
Momentum Oscillators ( RSI 14) |
67.508 |
- |
Strong Buy |
|
Trend Oscillators ( Bull or Bear Power 13) |
2.2014 |
- |
Strong Buy |
|
Volatility ( ATR 14) |
0.3607 |
Less volatility |
Strong Buy |
Technical Analysis(Regular):
| Title | Value | Action | Buy |
|---|---|---|---|
|
Moving Averages( MA 5) |
72.059 |
72.119 |
Strong Buy |
|
Momentum Oscillators ( RSI 14) |
67.214 |
- |
Strong Buy |
|
Trend Oscillators ( Bull or Bear Power 13) |
2.0058 |
- |
Strong Buy |
|
Volatility ( ATR 14) |
0.3321 |
Less volatility |
Strong Buy |
In summary, when comparing large-cap and flexi-cap funds, analyzing standard deviation and beta value helps illustrate performance, while Treynor’s ratio and the Sharpe ratio highlight risk and excess return for investors
Conclusion
From the above comparisons, both the funds prove their potential to outperform market conditions as well as give outstanding returns for long-term investors.