Should I invest more in Axis Long Term Equity Fund?


Should you invest in Axis long term equity fund? This is a question that has been posted by several investors. Well, as experts will often tell you, it is usually a good idea to invest in a time-tested plan, one that has offered consistent results over the long haul.

If you are wondering is it good to invest in Axis long term equity fund, you should know that this is a highly effective mutual fund investment scheme. This is an ELSS or equity-linked saving scheme. If you are investing in this particular scheme, then you can get tax deductions under Section 80C of the Income Tax Act. You can get exemptions up to Rs. 1.5 lakh accordingly in a particular financial year.

This Axis bank mutual fund has a lock-in period of 3 years like many other ELSS options. Yet, you should make investments if you have a time period of 5-7 years to invest, i.e. you should be willing to wait for a while at least for your investment to reap rewards. Whenever you are making an investment in any equity-based mutual fund scheme, you should refrain from reading too much into daily or regular market fluctuations and movements. Instead, you should connect your ELSS investment to any long-term financial objective or goal that you have. Stay focused on this in order to build and accumulate wealth and meet your objective with aplomb.

Is Axis long term equity fund good?

While the good bit is always subjective and depends a lot on how you get the answer to your question of how is Axis long term equity fund performance, you should make it a point to deploy your investment via SIPs or systematic investment plans in order to spread out your risks and combat fluctuations in the market. Several market experts have opined that you can consider investing in this Axis long term equity fund since it is one of the good performers in the ELSS category.

An advantage of ELSS investments is that they help you save taxes substantially over a sustained time period while also enabling shorter lock-in periods of three years. The latter is a major benefit for those who are looking to withdraw money to meet specific needs after a period of time. The overall report on Axis long term equity fund growth performance has been quite good since this fund has done well in offering attractive returns, particularly in case of holding periods which have been considerably longer. The scheme has been managed by reputed and experienced fund managers over close to a decade or so. The fund has invested almost 75% of its overall portfolio in large companies in terms of size, along with blue-chip entities. Reports also state that 22% of the fund’s portfolio has been deployed as an investment throughout mid-sized entities or companies. The portfolio spans business sectors like automobiles, financial entities, and services.

The specific structure employed here has proven to be a good move since it has helped in lowering market downsides as much as possible. Earnings have been fairly stable in all of these business sectors. The scheme has ensured returns of approximately 10.5% and 17.5% for the last 5-year and 10-year durations as per reports.

This is quite higher in comparison to several of its peers in the same category. Investors should keep at least 5 years in hand while investing in this particular scheme. The scheme has also witnessed the advent of new companies in the portfolio such as Eicher Motors, RBL Bank, Bharti Airtel, and others. The allocation has gone up for high-performing entities such as ICICI Bank, Bandhan Bank, and even Nestle India. Some of the previous exits have included Larsen & Toubro and Gruh Finance.

Axis long term equity fund- Some key aspects

Here are some key aspects that you need to keep in mind before investing in the long term Axis equity fund:

  • The NAV (net asset value) as of 11th June 2020, stood at ₹42.2067-0.64 (-1.49%)
  • The annualized returns have stood at 4.39% for 3 years and it has required 2.11 years to double investments.
  • CAGR (compounded annual growth rate) returns have been 22.09% for 1 year while it has been 17% and 10.50% for 3 and 5 year periods.
  • SIP CAGR returns have been 22.35%, 13.71%, and 13.76% for the 1 year, 5 year, and 3 year periods.
  • The composition of the portfolio has 59.16% in really giant companies as compared to 52.66% in the case of peers. Large companies are present across 16.80% with midsized companies holding 22.41% of the portfolio. Small companies hold just 1.64% of the portfolio at present while tiny companies are absent. Returns since launch stand at 17.3% as per reports.

On a Closing Note

The fund is majorly inclined towards large-cap stocks and the portfolio is majorly adopting a bottom-up approach as per industry experts. The portfolio is decently concentrated throughout various business and economic sectors. This style of investing has earned rich dividends over the last few years.

The performance of the fund has also been pretty good in a manner of speaking. Investing in this ELSS investment avenue will help you create wealth while saving taxes at the same time. You can use it to meet future goals like the higher education of children or buying a new house among others. Investors with a lower risk quotient should also consider these plans.


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