Axis Bluechip Fund Direct Growth: What Investors Should Know

Investing in well-established companies with consistent returns is an opportunity that’s hard to ignore. Just like you might be loyal to iPhones or a specific Android brand, sticking with blue-chip stocks can be a smart move to diversify your portfolio. The Axis Bluechip Fund Direct Growth is a perfect example of how this strategy can work for you.

Since its launch on January 1, 2013, this open-ended equity scheme has focused on large companies with a solid track record. If your goal is to enhance your portfolio with high-quality, established investments, this fund is an excellent choice.

In this blog, we’ll explore the Axis Bluechip Fund Direct Growth NAV history and Axis Bluechip Fund Direct Plan Growth Portfolio.

Fund Management and Objectives

The Axis Bluechip Fund Direct Growth is managed by a skilled team, including Mr Shreyash Devalkar, Mr Ashish Naik, and Ms Krishnaa N.

The scheme invests in equity and equity-related instruments of large-cap companies (80-100%), with a smaller portion (0-20%) allocated to other companies. The axis bluechip fund focuses on risk management. It aims to maintain a relatively liquid portfolio and targets lower volatility compared to the benchmark (Nifty).

How does Axis Bluechip fund direct plan growth work?

It focuses on the fundamental analysis. The Axis bluechip fund plan picks up high-quality companies with good growth potential.

• It’s best for those who can invest for 5 years or more.
• It measures performance against the BSE 100 TRI.
• You can start with just Rs. 100.

Performance and Returns

The Axis Bluechip Fund has been performing exceptionally well since it was launched. As of 23-Aug-2024, the axis bluechip fund – direct growth nav is ₹68.62. In the past year, it’s grown at an impressive rate of 32.80% per year on average. The axis bluechip fund has also delivered strong returns over longer periods. It has grown at an average rate of 11.92% per year over the last 3 years and 17.31% per year over the last 5 years. This is much better than the average fund in its category, which has an average growth rate of 10.45%.

As of 31 Jul 2024, the fund manages Assets Under Management (AUM) of ₹35,013.27 Crore.

The Axis Bluechip Fund is a good option if you’re looking for a mix of strong growth and stability. 

However, it’s important to be prepared for the possibility of risk along the way.

Ready to invest in the Axis Bluechip Fund Direct Plan? Start now with zero brokerage!

Investment Allocation

The Axis Bluechip Fund Direct Plan Growth portfolio primarily invests in equities. 95.59% of its assets are allocated to stocks. However, a smaller portion of 3.21% is invested in debt instruments, and 1.19% is held in cash and cash equivalents.

In terms of market capitalisation, the fund has a significant focus on large-cap stocks, which make up 85.93% of its portfolio, compared to the category average of 72.27%. It has a smaller allocation to mid-cap stocks at 14.07%, above the category average of 24.30%. The fund does not invest in small-cap stocks.

The average market capitalization of the fund’s holdings is ₹4,79,417 Crore, which is higher than the category average of ₹3,88,206 Crore.

The fund holds 54 stocks in total. 

The top 10 stocks represent 52.81% of the portfolio, while the top 5 stocks make up 32.64%. 

1. Financial Services – 28.96%

This sector has the largest holdings in the fund.

2. Information Technology – 9.95%
   

Another significant portion is allocated to IT.

3. Consumer Services – 9.74%

Investments in consumer services contribute to the fund’s diversification.

4. Automobile and Auto Components – 9.53%

This sector represents a substantial investment, focusing on automotive manufacturing and related components.

5. Oil, Gas & Consumable Fuels – 7.21%

Investments in the energy sector, including oil, gas, and consumable fuels.

As of July 2024, the Axis Bluechip fund’s top holdings include:

1. HDFC Bank Ltd – 8.71%
2. ICICI Bank Ltd – 7.73%
3. Reliance Industries Ltd – 6.31%
4. Avenue Supermarts Ltd – 4.97%
5. Tata Consultancy Services Ltd – 4.92%

Key Metrics

As of July 31, 2024, the axis bluechip fund direct growth expense ratio is 1.56%, which is lower than the category average of 2.01%. In terms of returns, the Axis Bluechip Fund has delivered a strong 31.60% return over the past year. 

The axis bluechip fund direct plan growth also shows performance with a 3-year annualized return of 10.79%. Recent performance includes a 0.20% gain in the last day, reflecting its ongoing positive momentum. 

Axis Bluechip Fund targets to deliver steady returns and alpha by focusing on 60% leaders in secular growth segments and 40% challengers gaining market share. 

Risk and Volatility

The Axis Bluechip Fund has a very high risk rating due to its equity investments. 

It primarily invests in large-cap companies, which are generally more stable. However, the axis bluechip fund can still experience significant volatility.

• Mean Return: The fund has a mean return of 13.49%, which is lower compared to the BSE 100 TRI’s return of 18.79%. 

This indicates that while the fund performs well, it does not always match the broader market’s return.

• Standard Deviation: At 13.29%, the fund’s standard deviation is close to that of the BSE 100 TRI.

A higher standard deviation means more fluctuation in returns.

• Sharpe Ratio: With a Sharpe Ratio of 0.60, the fund’s returns are relatively low compared to the risk taken. 

The Sharpe Ratio evaluates how well the fund returns for the risk taken. A higher Sharpe Ratio indicates better returns for the risk.

• Sortino Ratio: The Sortino Ratio of 1.28 measures performance during market downturns, focusing on negative returns. 

It shows how well the fund performs in times of negative returns, especially during market downturns. However, it still lags behind the BSE 100 TRI’s ratio of 2.13.

• Beta: The fund has a Beta of 0.97, indicating that it is slightly less volatile than the broader market. 

Beta measures how much the fund’s value changes compared to the benchmark. A beta under 1 means it’s less volatile.

• Alpha: The fund’s Alpha is -4.92, suggesting it has underperformed the market relative to the risk taken. 

Alpha shows how well the fund performs compared to its benchmark. A positive alpha means it’s doing better than expected.

• Information Ratio: The Information Ratio measures how consistently the fund outperforms its benchmark on a risk-adjusted basis. 

Taxation

Taxation for the Axis Bluechip Fund Direct Growth follows specific rules. These include:

• Short-term Capital Gains (less than 1 year)- Taxed at 15%
• Long-term Capital Gains (more than 1 year)- Taxed at 10% without indexation benefit
• Dividends: Taxed at slab rate. Long-term gains up to ₹1 lakh are exempt from taxation.

Investment Details

Considering an investment in Axis Bluechip Fund Direct Growth?

Here’s what you need to know:

• Minimum Investment: ₹100 (applicable for both lump sum and SIP investments).
• Lock-in Period: None.
   

The axis bluechip fund direct growth offers flexibility with no lock-in period. You can start with a minimal investment and take advantage of its long-term growth potential.

Invest in Axis Bluechip Fund Direct Growth with SIP or lump sum with a free demat account!

How to Invest in Axis Mutual Funds

You can invest in the Axis Bluechip Fund Direct Growth with Shoonya. Not only does Shoonya offer zero brokerage trading, but it also provides advanced trading tools and 100+ technical indicators.

Investing in Lump Sum Mutual Funds Through the Shoonya Web Platform

Here’s a quick guide on how to invest in lump sum mutual funds through the Shoonya web platform:

1. First, you must log in to your Shoonya account at trade.shoonya.com. From the “Orders” section, click on “MF order.”
2. Search for the fund you wish to invest in; in this case, axis bluechip fund direct growth.
3. Choose “Fresh” for a new investment and enter the amount you want to invest.
4. You can complete your purchase by clicking the “Purchase” button.
5. A payment link will be sent to your registered email. Use the link to make the payment.

After payment, your mutual fund units will be allotted to your Demat account within T+2 days.

Note: You can only make the payment using the bank account registered with your Demat account.

Setting Up an SIP for Mutual Funds

If you prefer a Systematic Investment Plan (SIP) for Axis Bluechip Fund, you must follow these steps:

1. First, you need to log in to your Shoonya account at trade.shoonya.com. Go to “Orders” and click on “XSIP.”
2. Find the mutual fund for which you want to set up an SIP. In this case, select Axis Bluechip Fund Direct Growth.
3. If this is your first SIP with Shoonya, you need to create a Mandate ID. Enter the mandate amount and the validity date (until you want to keep your SIP active).
4. You must submit the details, and you’ll receive a Mandate authentication link via email. Approval generally takes 24 hours.

Once your Mandate is approved, you can follow these steps to set up your SIP:

1. Go to “XSIP,” enter the SIP amount, and select “Fresh” as the transaction type.
2. Choose the date when the SIP will be debited directly from your registered bank.
3. The approved Mandate ID will auto-reflect.
4. Choose “Monthly” for monthly debits and specify the number of instalments (e.g., 24 instalments for a 2-year SIP).

This process will help you invest systematically with ease.

What is a Bluechip Fund?

A bluechip mutual fund primarily invests in large, well-established companies with a proven performance record. These funds are known for their stability, lower volatility, and consistent returns. They are ideal for investors looking for long-term growth with reduced risk.

What Are Blue Chip Stocks?

Blue chip stocks are shares in large, well-established companies known for their strong performance and reliability over time.

Here’s what makes them special:

• These companies have a long history of success and stability.
• They operate in various sectors, which helps spread risk.
• They lead their markets and have effective business strategies.
• Bluechip funds are strong in their home markets and also earn a lot from international sales.
• They typically follow excellent corporate governance practices.

These characteristics help blue chip stocks be a solid choice for long-term investment.

Benefits of Investing in Bluechip Fund

Bluechip funds invest in large, established companies known for their stability. This means you’re more likely to see consistent returns compared to investing in smaller, less stable companies.

1. Because blue chip companies are financially strong and well-established, they tend to be less volatile. This reduces the overall risk of your investment.
2. Many blue chip companies pay regular dividends. This means you could receive a steady stream of income in addition to any potential growth in your investment.
3. The shares of bluechip companies are highly liquid, making it easy to buy or sell your investments without affecting the price too much.
4. Bluechip funds are managed by experienced professionals who know how to pick and manage these top-performing companies. This means your money is in good hands.
5. Bluechip companies have a history of growth and are positioned for long-term capital appreciation, which can be beneficial for long-term investment goals.
6. These funds invest in a range of bluechip stocks across different sectors. This diversification helps spread out risk and reduces the impact of any single investment going wrong.

Things to Know Before Investing in Axis Bluechip Fund Direct Growth

1. This fund invests primarily in large-cap companies with strong corporate governance, solid business models, and high ROE. 
2. The Axis Bluechip Fund Direct Growth is designed to provide consistent performance by focusing on blue-chip stocks. 

However, keep in mind that past performance is not indicative of future results. The fund’s strategies and returns can vary based on market conditions.

3. The Axis Bluechip Fund Direct Plan Growth is suitable for long-term investors aiming for stable growth. 
4. You can invest through a lump sum or a systematic investment plan (SIP), with a minimum investment of ₹100.
5. There is no lock-in period. Thus the fund is flexible.

However, tax implications and market conditions should be considered when withdrawing investments.

Conclusion

The Axis Bluechip Fund Direct Growth is an excellent choice for those looking to invest in stable, high-quality large-cap companies with the potential for long-term growth. Its strong performance history, low expense ratio, and diversified portfolio make it a compelling option.

FAQs | Axis Bluechip Fund Direct Growth

Source: ValueResearch

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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.