Axis Long Term Equity is a mutual fund that allows investors to benefit from long-term capital appreciation in the equity markets. As the name suggests, the fund’s investment strategy is centered around investing in equity shares of companies that exhibit stable growth over the long term. The fund is suitable for investors looking to build a diversified portfolio of quality stocks, with a minimal allocation to fixed income securities.
Launched in December 2009, the Axis Long Term Equity is managed by Axis Asset Management Company Limited and has consistently outperformed its benchmark indices over the years. The fund’s investment philosophy revolves around identifying companies with a sustainable competitive advantage, robust management quality, and strong growth potential. As a result, the fund is heavily invested in blue-chip companies across various sectors such as financials, consumer goods, healthcare, and technology.
The Axis Long Term Equity Fund is an excellent investment tool for savvy investors seeking long-term capital appreciation and a low-risk approach to equity investments. The fund’s investment strategy focuses on quality stocks, and its experienced management team ensures that the portfolio is well-diversified, providing a hedge against market volatility. Moreover, with the fund’s returns consistently outperforming its benchmark indices, investors can rest easy knowing their investments are in the safe hands of a reliable asset management company.
Axis Long Term Equity Fund: An Introduction
Axis Long Term Equity Fund is an equity-linked savings scheme (ELSS) that invests in a diversified portfolio of equity and equity-related securities. This tax-saving mutual fund scheme is managed by Axis Asset Management Company Limited, one of the leading asset management companies in India. The fund has a track record of consistent performance and has delivered superior returns over the long-term.
What is ELSS?
- ELSS is a type of mutual fund that primarily invests in equity and equity-related securities.
- One of the key benefits of ELSS is that investments made in these funds are eligible for tax deductions under Section 80C of the Income Tax Act.
- ELSS has a lock-in period of 3 years, which means that investors cannot redeem their investments before the completion of 3 years.
- ELSS is considered to be a high-risk, high-reward investment option as it primarily invests in equity and equity-related securities.
Benefits of Investing in Axis Long Term Equity Fund
Investing in Axis Long Term Equity Fund provides several benefits to investors:
- Tax Savings: Investments made in this fund are eligible for tax deductions under Section 80C of the Income Tax Act.
- Long-Term Growth: Axis Long Term Equity Fund has a history of delivering superior returns over the long-term.
- Diversification: The fund invests in a diversified portfolio of equity and equity-related securities, which helps to reduce the overall risk of the portfolio.
- Professional Management: The fund is managed by experienced professionals who have a proven track record of delivering consistent performance.
Performance of Axis Long Term Equity Fund
Axis Long Term Equity Fund has consistently outperformed its benchmark (Nifty 200 TRI) and peers over the long-term. The table below shows the performance of the fund over different time horizons:
| Time Horizon | Annualized Returns |
|---|---|
| 1 Year | 36.14% |
| 3 Years | 20.15% |
| 5 Years | 14.51% |
Overall, Axis Long Term Equity Fund is a good investment option for investors who are looking for long-term growth and tax savings.
Understanding Equity Funds
Equity mutual funds are a type of mutual fund that invests its assets mainly in the equity shares of various companies. Equity funds are one of the most popular mutual fund types as they offer the possibility of high returns in the long term. Axis Long Term Equity is a tax-saving equity fund that invests mainly in large-cap stocks, offering long-term benefits to the investors.
Types of Equity Funds
- Large-cap funds: These funds invest in the equity shares of large-cap companies with a market capitalization of more than Rs. 10,000 crore. They offer stability and moderate returns.
- Mid-cap funds: These funds invest in the equity shares of mid-sized companies with a market capitalization between Rs. 2,000 crore to Rs. 10,000 crore. They offer the potential for higher returns but come with higher risks.
- Small-cap funds: These funds invest in the equity shares of small-sized companies with a market capitalization of less than Rs. 2,000 crore. They have the potential to offer high returns but come with high risks as well.
Investing in Equity Funds
Investing in equity funds requires careful consideration of various factors like past performance, investment objective, risk-return profile, and investment horizon. It is important to diversify the portfolio in terms of company size, sector, and geography, to minimize the risks. Axis Long Term Equity fund is a suitable option for investors who are looking for long-term investments and tax-saving benefits.
Axis Long Term Equity Fund
Axis Long Term Equity Fund is a tax-saving equity fund that invests in the equity shares of large-cap companies. It has a diversified portfolio, consisting of various sectors like banking, technology, healthcare, and consumer goods. The fund aims to generate long-term capital appreciation and offers tax-saving benefits under Section 80C of the Income Tax Act, 1961. The fund has given an average annual return of 14.27% in the last five years, making it a reliable investment option for investors.
| Parameters | Axis Long Term Equity Fund | Category Average |
|---|---|---|
| 1-year Returns | 65.92% | 49.57% |
| 3-year Returns | 12.56% | 8.58% |
| 5-year Returns | 14.27% | 11.94% |
Source: Value Research, Data as on 31st May 2021
Investing in Mutual Funds: What You Need to Know
Mutual funds are a popular way for individuals to invest their money in a diverse portfolio managed by a professional fund manager. One such mutual fund is Axis Long Term Equity, which is classified as an equity linked savings scheme (ELSS). An ELSS is a type of mutual fund that offers tax benefits to investors under Section 80C of the Income Tax Act.
- Axis Long Term Equity has a minimum investment amount of Rs. 500 and no maximum investment limit, making it accessible to both small and large investors.
- The fund has a lock-in period of three years, which means investors cannot withdraw their funds before this time period. This encourages long-term investing and helps the fund manager make better investment decisions.
- The fund primarily invests in the Indian equity market, with a focus on large-cap and mid-cap companies. This diversification helps reduce portfolio risk while maintaining potential for growth.
The Benefits of Investing in Mutual Funds
Investing in mutual funds has a variety of benefits for individuals looking to grow their wealth. Firstly, it allows for diversification of a portfolio without having to purchase individual stocks. Secondly, the professional manager takes care of the day-to-day investment decisions, reducing investor stress and time. Lastly, mutual funds have various tax benefits which can help increase overall returns.
However, it’s important to note that mutual funds, like any investment, come with risks. It’s important to do thorough research and consult with a financial advisor before investing in any mutual fund.
The Performance of Axis Long Term Equity
Axis Long Term Equity has consistently outperformed its benchmark index, the S&P BSE 200, since its inception in 2009. The fund has a five-star rating from Morningstar, an independent investment research firm.
| Period | Annualized Returns (%) |
|---|---|
| 3 years | 10.53% |
| 5 years | 10.83% |
| 10 years | 16.43% |
It’s important to note that past performance is not indicative of future results, but the consistently high performance of Axis Long Term Equity highlights the potential for growth in a well-managed mutual fund.
Axis Long Term Equity Fund: Performance Analysis
If you’re looking for a fund that offers excellent long-term performance and tax-saving benefits, Axis Long Term Equity Fund may be an ideal choice. Established in 2009, this fund aims to provide investors with long-term capital appreciation by investing in a diversified portfolio of equity and equity-related securities. It’s a type of mutual fund that falls under the ELSS (Equity Linked Saving Scheme) category, offering tax benefits under Section 80C of the Income Tax Act.
Performance Analysis
- Axis Long Term Equity Fund has consistently outperformed its benchmark index Nifty 500 TRI over the last decade, with an annualized return of 18.12% compared to the index’s 10.50%.
- The fund’s AUM has grown from INR 547 crores in 2013 to INR 21,343 crores as of June 2021, indicating strong investor interest and trust in the fund’s performance.
- Over the last five years, the fund has shown a lower volatility of returns compared to the benchmark index, indicating a more stable and consistent performance.
Let’s take a closer look at the fund’s performance over the last five years:
| Fund Name | 1 Year Return | 3 Year Return | 5 Year Return |
|---|---|---|---|
| Axis Long Term Equity Fund | 69.79% | 17.90% | 18.05% |
| Nifty 500 TRI | 56.27% | 13.43% | 10.57% |
As you can see, the fund has shown a significantly higher return than the benchmark index across all timeframes, indicating that it has delivered on its promise of long-term capital appreciation for investors.
In conclusion, Axis Long Term Equity Fund has established a reliable track record of delivering consistent and superior long-term performance. Its tax-saving benefits under Section 80C make it an attractive investment option for individuals looking to save taxes while also seeking capital appreciation. However, as with any investment, it’s important to do your due diligence and evaluate the fund’s past performance, risk profile, and investment objectives before investing.
Tax Benefits of Investing in Axis Long Term Equity Fund
Axis Long Term Equity Fund is one of the top-performing ELSS (Equity Linked Saving Scheme) in India, which primarily invests in equity and equity-related instruments. It is a diversified equity fund, which aims to provide long-term wealth creation opportunities to investors while saving taxes.
- Tax Benefits: Axis Long Term Equity Fund offers tax benefits under Section 80C of the Income Tax Act. The investments made in this fund are eligible for deductions up to INR 1.5 lakhs in a financial year.
- Lock-in Period: The investments made in Axis Long Term Equity Fund come with a lock-in period of three years. This means that the invested funds cannot be withdrawn or redeemed before the completion of the lock-in period.
- Capital Gains Tax: ELSS investments are subject to capital gains tax, and Axis Long Term Equity Fund is no exception. However, the long-term capital gains (LTCG) arising from the redemption of the fund after completion of the lock-in period are exempt from tax up to INR 1 lakh in a financial year.
Here is a comparison of tax benefits and other features of Axis Long Term Equity Fund and other investment options:
| Investment Options | Lock-in Period | ELSS Tax Benefits | Capital Gains Tax |
|---|---|---|---|
| Axis Long Term Equity Fund | 3 years | Up to INR 1.5 lakhs deduction under Section 80C | Exempt from tax up to INR 1 lakh LTCG in a year |
| Public Provident Fund (PPF) | 15 years | Up to INR 1.5 lakhs deduction under Section 80C | Exempt from tax |
| National Pension Scheme (NPS) | Until retirement | Up to INR 1.5 lakhs deduction under Section 80C and an additional INR 50,000 under Section 80CCD(1B) | Taxed as per the income tax slab |
Overall, investing in Axis Long Term Equity Fund can provide not just higher returns but also tax benefits to investors, making it a popular choice for wealth creation and saving taxes simultaneously.
Axis Long Term Equity Fund: Investment Strategy
Axis Long Term Equity Fund is an Equity Linked Savings Scheme (ELSS) that offers tax-saving benefits under Section 80C of the Income Tax Act, 1961. It is a diversified equity fund that invests primarily in large-cap companies across various sectors. The fund aims for long-term capital appreciation by investing in high-quality stocks, which can withstand market volatility and fluctuation.
- Investment Objective: The Axis Long Term Equity Fund’s primary objective is to achieve long-term capital appreciation by investing in equity and equity-related instruments of large-cap companies across various sectors.
- Portfolio Allocation: The fund invests 80-100% of its assets in equity and equity-related instruments of large-cap companies across various sectors. The fund may also invest up to 20% of its assets in debt and money market instruments for liquidity management purposes.
- Investment Philosophy:The fund believes in investing in high-quality stocks with sustainable business models, strong management teams, and a competitive advantage. The fund follows a disciplined investment process, which includes in-depth research and analysis of companies, sectors, and markets.
The Axis Long Term Equity Fund has a lock-in period of three years, which means investors cannot redeem their investment for the first three years without incurring any penalty. This lock-in period encourages long-term investment and aligns the fund’s interest with that of the investors. The fund offers the potential for high returns with the added benefit of tax savings, making it an attractive investment opportunity for long-term investors.
Axis Long Term Equity Fund: Key Features
| Features | Details |
|---|---|
| Tax Savings | Investments in the fund are eligible for tax benefits under Section 80C of the Income Tax Act, 1961, for up to Rs. 1.5 lakhs per annum. |
| Diversified Portfolio | The fund invests in a diversified portfolio of large-cap companies across various sectors. |
| Disciplined Investment Process | The fund follows a disciplined investment process, which includes in-depth research and analysis of companies, sectors, and markets. |
| Lock-in Period | The fund has a lock-in period of three years, which encourages long-term investment and aligns the fund’s interest with that of the investors. |
Overall, the Axis Long Term Equity Fund offers investors a unique opportunity to save taxes while investing in high-quality large-cap companies with a long-term horizon. The fund’s disciplined investment process and diverse portfolio make it an attractive investment option for long-term investors seeking to create wealth and build a solid investment portfolio.
How to Choose the Right Mutual Fund for Your Portfolio
Axis Long Term Equity Fund is a high-performing tax saver mutual fund. But when looking to build a successful investment portfolio, it’s important to choose the right mutual fund for your specific needs and goals. Here are some tips on how to choose the right mutual fund for your portfolio:
Consider Your Investment Goals
- Are you investing for the short-term or long-term?
- What are your financial goals?
- What level of risk are you willing to take on?
Knowing your investment goals is the first step in selecting the right mutual fund for your portfolio.
Look at Performance and Ratings
Check out the mutual fund’s historical performance and ratings from reputable sources such as Morningstar. Look for mutual funds with consistent and strong performance over a period of time. Don’t be swayed by one-year returns; long-term performance is more important.
Understand Fund Fees and Expenses
Mutual funds come with fees and expenses, such as management fees and operating expenses. These fees can eat into your returns over time. Look for mutual funds with low fees and expenses.
Examine Fund Holdings
| Fund Name | % in Equity | % in Debt | % in Cash |
|---|---|---|---|
| Axis Long Term Equity Fund | 97.15% | 2.78% | 0.07% |
Review the mutual fund’s holdings to understand the types of investments the fund manager is making. Look for a diverse mix of investments across different sectors, industries, and asset classes.
Consider Fund Manager Experience
An experienced fund manager can make a big difference in the performance of a mutual fund. Look for mutual funds with experienced and knowledgeable fund managers with a proven track record of success.
Assess Fund Size
Consider the size of the mutual fund. Large mutual funds can be more stable and less risky, but smaller mutual funds may have more flexibility to take on riskier investments and potentially earn higher returns.
Read Fund Documents
Before investing in a mutual fund, be sure to read the fund documents, including the prospectus and annual report. These documents can provide important information about the mutual fund’s investment objectives, risks, fees, and expenses.
FAQs: What type of fund is Axis Long Term Equity?
1. What is the investment objective of Axis Long Term Equity fund?
Axis Long Term Equity fund aims to generate long-term capital appreciation from a diversified portfolio of equity and equity-related securities.
2. What is the investment strategy of Axis Long Term Equity fund?
Axis Long Term Equity fund follows a bottom-up approach of picking stocks based on their financials, growth prospects, and valuations. The fund has a bias towards large-cap stocks, but it may also invest in mid-cap and small-cap stocks based on their potential.
3. Can non-residents invest in Axis Long Term Equity fund?
Yes, non-residents can invest in Axis Long Term Equity fund through the foreign portfolio investment (FPI) route, subject to regulatory restrictions.
4. What is the minimum investment amount for Axis Long Term Equity fund?
The minimum investment amount for Axis Long Term Equity fund is Rs. 500 for lump sum investments and Rs. 1,000 for SIP investments.
5. Is Axis Long Term Equity fund suitable for first-time investors?
Axis Long Term Equity fund is suitable for investors with a high risk appetite and a long-term investment horizon. First-time investors should consult a financial advisor before investing in this fund.
6. Does Axis Long Term Equity fund offer any tax benefits?
Yes, Axis Long Term Equity fund qualifies for tax benefits under section 80C of the Income Tax Act, 1961. Investors can get a deduction of up to Rs. 1.5 lakh from their taxable income by investing in this fund.
Closing Thoughts
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