When it comes to mutual fund investments, choosing the right fund can make all the difference in achieving your financial goals. One such mutual fund that has gained popularity among investors is the Axis Bluechip Fund. Managed by Axis Asset Management Company, this fund is a reliable investment option for long-term growth. In this blog, we’ll dive deeper into what the Axis Bluechip Fund is, how it works, and why it could be a great addition to your investment portfolio.
What is Axis Bluechip Fund?
Axis Bluechip Fund is an open-ended equity scheme that invests in blue-chip companies, i.e., large-cap companies with a proven track record of stable earnings, strong management, and robust financials. Launched in 2010, this fund aims to provide investors with long-term capital appreciation by investing in companies with a strong growth potential and a history of delivering consistent returns.
How does it work?
Axis Bluechip Fund works by investing in a diversified portfolio of blue-chip companies across various sectors, such as banking, FMCG, IT, and healthcare. The fund manager, Shreyash Devalkar, uses a bottom-up approach to identify companies with strong fundamentals, sustainable competitive advantages, and good management. The fund’s investment strategy is based on a blend of growth and value investing, which allows it to capture the upside potential of high-growth companies while also mitigating risk through the inclusion of stable, well-established companies.
Why should you invest in Axis Bluechip Fund?
There are several reasons why you should consider investing in Axis Bluechip Fund:
- Proven track record: The fund has consistently outperformed its benchmark, the Nifty 50 index, over the long term. In the last five years, the fund has delivered an average annual return of 19.12%, compared to the benchmark’s 13.24%.
- Diversification: The fund invests in a diversified portfolio of blue-chip companies, which reduces the risk of concentration in a single sector or company.
- Experienced fund manager: The fund is managed by Shreyash Devalkar, who has over 16 years of experience in equity research and fund management. His investment philosophy focuses on investing in high-quality businesses with strong growth potential and sound financials.
- Low expense ratio: The fund has a low expense ratio of 0.79%, which means that a larger proportion of your investment goes towards generating returns.
- Tax benefits: Investing in mutual funds can offer tax benefits under Section 80C of the Income Tax Act, 1961. Investors can claim a deduction of up to Rs. 1.5 lakh in a financial year.
conclusion
Axis Bluechip Fund is a reliable investment option for long-term growth. It invests in high-quality blue-chip companies with a proven track record of stable earnings and strong management. The fund’s investment strategy is based on a blend of growth and value investing, which allows it to capture the upside potential of high-growth companies while also mitigating risk through the inclusion of stable, well-established companies. So, if you’re looking for a mutual fund that can help you achieve your long-term financial goals, Axis Bluechip Fund could be a great addition to your investment portfolio.
Other Related Blogs: Section 144B Income Tax Act
Frequently Asked Questions (FAQs)
Q. What is Axis Bluechip Mutual Fund?
Axis Bluechip Mutual Fund is an open-ended equity scheme that invests primarily in blue-chip companies, i.e., large-cap companies with a proven track record of stable earnings, strong management, and robust financials.
Q. Who manages Axis Bluechip Mutual Fund?
The Axis Bluechip Mutual Fund is managed by Axis Asset Management Company, and the fund manager is Shreyash Devalkar.
Q. What is the investment objective of Axis Bluechip Mutual Fund?
The investment objective of Axis Bluechip Mutual Fund is to provide long-term capital appreciation by investing in a diversified portfolio of blue-chip companies across various sectors.
Q. What is the minimum investment amount for Axis Bluechip Mutual Fund?
The minimum investment amount for Axis Bluechip Mutual Fund is Rs. 5,000, and subsequent investments can be made in multiples of Rs. 1,000.
Q. What are the different investment options available under Axis Bluechip Mutual Fund?
Axis Bluechip Mutual Fund offers two investment options: Growth option and Dividend option. Under the growth option, the returns are reinvested in the fund, whereas under the dividend option, the returns are distributed as dividends.
Q. What is the expense ratio of Axis Bluechip Mutual Fund?
The expense ratio of Axis Bluechip Mutual Fund is 0.79%, which is considered low compared to other mutual funds.
Q. What is the exit load for Axis Bluechip Mutual Fund?
If you redeem your investment in Axis Bluechip Mutual Fund within 1 year from the date of allotment, an exit load of 1% will be applicable. There is no exit load if you redeem your investment after 1 year.
Q. How has Axis Bluechip Mutual Fund performed in the past?
Axis Bluechip Mutual Fund has consistently outperformed its benchmark, the Nifty 50 index, over the long term. In the last five years, the fund has delivered an average annual return of 19.12%, compared to the benchmark’s 13.24%.
Q. Is Axis Bluechip Mutual Fund suitable for long-term investments?
Yes, Axis Bluechip Mutual Fund is suitable for long-term investments as it invests in high-quality blue-chip companies with a proven track record of stable earnings and strong management.
Q. What are the tax implications of investing in Axis Bluechip Mutual Fund?
Investing in Axis Bluechip Mutual Fund can offer tax benefits under Section 80C of the Income Tax Act, 1961. Investors can claim a deduction of up to Rs. 1.5 lakh in a financial year. Capital gains tax may also be applicable on redemption of mutual fund units. It is advisable to consult a tax professional for more information on tax implications.
