AXIS Bluechip Fund – Direct Growth

How to invest in Axis Bluechip Fund?

An alternative way to invest in Axis bluechip fund is by visiting the website of Axis Mutual Fund. However, before proceeding, ensure you have an account with Axis Mutual Fund; if not, you’ll be required to make one.

Now that you have an account, let’s see how to invest in Axis Bluechip Fund Direct – Growth:

• Type the following in the search bar of your browser – https://www.axismf.com/.
• Hover over ‘Our Schemes’ – the first tab on top of the website. It’ll open a drop-down list. From the list, select ‘All Schemes’.
• A new page will open with the title ‘Our Mutual Fund Schemes’. On the top left of the screen, make sure you’ve toggled to ‘Direct’.
• On this page, Axis Bluechip Fund Direct – Growth would be the third option. If you can’t find it, press Ctrl + F and type the name of the scheme.
• Once you find the scheme, click on ‘Invest’. At this point, you’ll be asked if you want to invest a lump sum amount or sign up for a SIP. Select the option you prefer and follow the instructions given on the website to continue.

What is the expense ratio of Axis Bluechip Fund?

The expense ratio is the amount that investors have to pay to the fund managers. It shows how much of a fund’s assets are used for operating expenses.

Who should invest in Axis Bluechip Fund?

Axis bluechip fund invests almost 90% of its funds in the equity market, which makes the mutual fund a little volatile as compared to other funds. While this mutual fund can offer you risk-adjusted returns, it doesn’t guarantee returns. This is why only investors with a high-risk appetite and the ability to keep their funds for a long time should invest in Axis bluechip fund.

This fund is for you if you are looking to invest in a diversified portfolio with large-cap companies from sectors like financial services, auto, IT, consumer services, and healthcare.

What are the benefits of investing in the Axis Bluechip Fund?

The following are the benefits of investing in the Axis Bluechip Fund:

• You can invest in strong large-cap companies via Axis bluechip fund. Among the equity funds, it has invested over 88% of funds in large-cap stocks and less than half a per cent in midcap stocks. Its portfolio comprises companies like ICICI Bank, Bajaj Finance, HDFC Bank, Avenue Supermarts, Infosys, L&T, Mahindra & Mahindra. It is beneficial to invest in large-cap stocks because these stocks are stable investments, which is why they have low volatility and a steady dividend stream.
• Moreover, these large-cap companies have a proven track record of business models and can deliver consistent long-term returns.
• Axis Bluechip Fund is predominantly a mix of equity and debt assets, with nearly 90% of the funds invested in equity assets and a little over 10% in debt assets. It is beneficial to invest in equity funds because equity is one of the best financial classes to clock returns that can help you beat inflation. Plus, if you’re investing via SIP, investing in equity funds becomes easier on the pocket too. Moreover, equity funds let you enjoy tax benefits – you can get a rebate on up to Rs 1.5 lakh of your taxable income.
• Plus, the Axis Bluechip fund does not have an exit load if you redeem your units after 12 months. And even if you have to do it before 12 months, you only have to pay 1%. And there is no entry load.
• Its target goal is long-term, meaning you can easily plan for your children’s education and early retirement with this wealth creation plan.

What are the pros and cons of investing in Axis Bluechip Fund?

Pros:

• Axis Bluechip Fund has delivered consistent returns in line with its peers in the category. In fact, its 5-year annualised returns are higher than the category average by over 1.5%. If you had invested Rs 10,000 on its inception, your amount would have grown to Rs 41,634 by now. Had you invested 5 years ago, your Rs 10,000 would have been Rs 19,040.
• Its expense ratio is also considerably lower at 0.55%. The expense ratio is the amount paid to fund managers to look after the operational aspects of the fund.

Cons

• While Axis Bluechip Fund has consistently performed better than its peers, it has an AUM of Rs 36,890 crores. It is known that funds with higher AUM tend to give lower returns as time passes.
• While its 5-year annualised returns are higher than peers, it’s one, and three-year returns haven’t shown the same trend.
• In the past three years, its alpha has dropped to -0.89, meaning the fund’s returns have been lower than the benchmark – BSE 100 total return index.

What is the fund house and investment objective?

Axis Bluechip Fund Direct Plan – Growth was launched in September 2009 by Axis Mutual Fund. The fund house has about 48 schemes running the total assets management of Rs 2.50 crores as of September 2022.

The fund is managed by Shreyash Devalkar and Hitesh Das, and they have a combined experience of nearly 30 years. They have managed to keep Axis Bluechip Fund NAV at Rs 49.78.

Axis Bluechip Fund was established to increase the value of investors’ capital over the long term by primarily buying stocks and related securities of large companies, as well as derivatives, in a diverse range of investments. It is aimed towards investors with an investment horizon of over five years.