The level of risk that each investor is ready to face with their mutual fund investments differs. While some people are ready to accept bigger risks in the hopes of obtaining a higher return on their investment, others are content to settle for lower interest rates and less dangerous investment options. As an investor in mutual funds, one’s goal should be to put money only after due diligence of certain factors like risk appetite, tenure, and financial goals. It is understood and natural that the level of risk that each investor is ready to face with their mutual fund investments differs and hence, picking the right fund for investment is always a challenge.
Also Read: Best Performing Mutual Funds in last 15 years
Having said that, the Axis Blue Chip Fund is one such fund that any investor can consider for investment. Axis Blue Chip Fund invests in large-cap stocks which means that they invest in companies with a market capitalization of $10 billion or more.
Regardless of how long you’ve been in the mutual fund investment world – a new MF investor or investing in mutual funds already – you should add large cap mutual funds to diversify your portfolio!
Where do Axis Blue Chip Fund invest currently? How does Axis Blue Chip Mutual fund perform in the medium to long term? Should you invest in Axis Blue Chip Fund? Let’s explore all these questions and more!
First Things First: What are Blue Chip Funds?
Blue chip funds are mutual funds that invest in the shares of large companies / Blue chip companies with a high market capitalization. These are well-established businesses with a long track record of success. However, according to SEBI mutual fund classification rules, Blue chip funds have no formal category. Currently, these are classified under large cap mutual funds.
About Axis Blue Chip Fund
The Axis Blue Chip Fund is an open-ended equity fund that focuses on investing in large-cap stocks. If your investment goal is to generate long-term capital appreciation by investing in a diversified portfolio primarily composed of large-cap equity and equity-related instruments including derivatives – the Axis Blue Chip fund is where you should invest!
What is the Investment Objective of the Axis Blue Chip Fund?
The primary aim of the Axis Blue Chip fund is to invest in a diversified portfolio of large-cap equities and equity-related instruments in order to help generate long-term capital appreciation for the investor. However, in any case, always keep in mind that there is no guarantee that the scheme’s investment goal will always be met.
Where does Axis Blue Chip Fund Invest?
The Axis Blue Chip majorly invests in large-cap companies intending to outperform the benchmark.
These companies are frequently traded, making them both liquid and less volatile. The recent BSE circular about mid-cap and small-cap stocks add-on circuit filters are creating some panic in this segment but investors need not worry as this fund invests majorly in large-cap stocks.
This fund has a consistent track record in the last 5 to 10 years and invests majorly in equity; an asset class that can outperform inflation and help build long-term wealth.
Axis Blue Chip Fund: Understanding the Historic Medium to Long Term Performance
Let’s understand the historic performance of the Axis Blue Chip fund and its comparison with the benchmark (source: Scripbox).
Last 10 years: Axis Blue Chip fund generated 15.6% annualized returns in the against the benchmark returns of 14%
Last 5 years: This fund generated 17% annualized returns against the benchmark returns of 14.8%
Last 1 year: This fund generated 41% returns against the benchmark returns of 47%
Why Should You Invest In Axis Blue Chip Fund?
Here are a few reasons to invest in such blue-chip funds.
1) Large-cap stocks: This mutual fund invests in large-cap stocks and blue-chip stocks
2) Consistent Performer: This fund is an all-time performer in the large-cap mutual fund segment in the medium to long term
3) Positive Trend Performance: In the last couple of years, we could see the large-cap segment was outperforming. Currently, the midcap and small-cap segments are reaching new highs, however again, large-cap stocks exhibit a high possibility of long-term future performance. Investing in large-cap funds in the medium to long term can benefit you with such cycles.
4) Ideal Long-Term Investment Fund: Investors who are planning for long-term goals like children’s education, daughter marriage, retirement, or any other future that requires a wealth-building strategy can invest in such schemes
Risk Factors Associated with The Fund
1) Unpredictability: Past performance may or may not repeat in the future. One should look at how the fund performed in the short-term, medium, and long-term.
2) All-Pervasive Risk Possibility: This fund invests in large-cap stocks but this does not mean it should be assumed to be a ‘safe’ mutual fund. All mutual funds pose an element of risk, however, this is on the lower side.
FAQs about Axis Blue Chip Fund
1) What are equity funds?
Equity funds are mutual funds that invest primarily in the shares of companies with varying market capitalizations.
2) Is the Axis blue chip fund an open-ended equity scheme?
Yes, the Axis blue chip fund is an open-ended equity scheme, which predominantly invests in large-cap stocks.
3) How to invest in Axis blue chip fund?
Customers must go to the fund’s website and fill up all of the KYC information. KYC documents include identification, proof of address, and bank account information.
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Should I Invest in Axis Blue Chip Fund?
Axis blue chip funds invest in large-cap and blue-chip stocks and this fund is a consistent performer in the medium to long term. Investors should always diversify their portfolio by adding large-cap funds along with midcap, small-cap, and balanced funds. High-risk investors with medium to long perspectives can invest in such funds.
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Hello Sir,
Can you please review ICICI Prudential Blue Chip Fund with objective of long term investment (5-8yrs)
How @SBI Balanced Advantage funds new IPO.
Thought this is new fund without any past performance, balance advantaged funds are good. You can go ahead and invest in case you still want to test with new funds.