Taxes can be a big concern when it comes to mutual fund investments. But what if there was a way to save on taxes while growing your wealth at the same time? That’s exactly where the Axis Tax Saver Fund Direct Growth shines.
As part of the ELSS (Equity Linked Savings Scheme), it offers a perfect combination of tax benefits and long-term wealth creation. The Axis Tax Saver Fund Direct Growth gives you the dual advantage of saving on taxes under Section 80C and the potential for high returns. With a minimum investment of just ₹500, it’s a simple way to start investing. Plus, with its 3-year lock-in period, you not only secure tax deductions but also position your investment for potential capital growth.
In this blog, we will show you the Axis Tax Saver Fund Direct Growth NAV and the latest trends in the Axis Equity Savings Fund.
Fund Management and Objectives
The Axis ELSS Tax Saver Fund Direct Plan Growth was launched on January 1, 2013. The scheme is managed by Mr Shreyash Devalkar and Mr. Ashish Naik. It aims to give capital appreciation and income distribution.
The Axis Equity Saver Fund Direct Growth Fund Invests In:
- Companies with a strong track record of growth and financial stability.
- Firms with effective execution strategies and healthy cash flows.
The Axis Equity Saver Fund Direct Growth Fund Avoids:
- Highly cyclical industries that are prone to economic fluctuations.
- Sectors that are heavily regulated and less predictable.
The fund employs a strategy that includes:
- A rigorous stock selection process that is independent of strict benchmarks.
- A compact portfolio reflecting high conviction in its chosen stocks.
- Long holding periods to capitalize on sustained growth and stability.
Features of Axis ELSS Tax Saver Fund
The fund invests across all market caps. It aims to keep a balance between large-cap and mid-cap stocks.
- It focuses on long-term growth and quality when selecting stocks.
- It is an open-ended Equity-Linked Savings Scheme (ELSS) with a 3-year lock-in period.
- It offers tax deductions under Section 80C of the Income Tax Act, 1961.
Performance and Returns
The Axis Tax Saver Fund Direct Growth has delivered stable performance since its inception. As of 10th-Sep-2024, the axis tax saver fund direct growth NAV stands at ₹108.3.
You would be glad to see the returns potential of axis equity saver fund:
- 1 Year: The fund has returned 34.3%.
- 3 Years: It has delivered a compounded annual growth rate (CAGR) of 9.6%.
- 5 Years: With a 17.8% CAGR, the fund has outperformed many peers.
The fund manages assets worth ₹38,278 Crore as of July 2024, highlighting its substantial size compared to the category average. Its expense ratio is 0.78%, which is competitive and lower than the average expense ratio in its category.
For investors seeking tax benefits along with potential equity growth, the Axis ELSS Tax Saver Fund Direct Growth provides a viable option.
However, it’s important to note the fund’s high risk profile and its variable performance against benchmarks.
Ready to invest in the Axis ELSS Tax Saver Fund ? Start now with zero brokerage!
Investment Allocation
The Axis Equity Saver Fund primarily focuses on equities. It invests almost 97.84% of its assets in stocks. However, only a small portion is allocated to debt instruments (0.55%) and cash & cash equivalents (1.61%) to manage liquidity and reduce risk.
Here is the detailed breakdown of Axis Eqyuity Saver Fund Direct Growth Portfolio:
- Giant Cap Stocks: 53.78%
A significant portion of the fund is invested in large-cap companies. - Large Cap Stocks: 32.09%
The fund maintains a strong allocation in large-cap stocks. - Mid Cap Stocks: 13.94%
This allocation supports potential for higher returns, though with added volatility. - Small Cap Stocks: 0.19%
Minimal exposure to small-cap stocks. - Number of Stocks: 89
The axis equity saver fund aims to spread risk across a broad range of investments. - Top 10 Stocks: 39.11%
The top 10 holdings represent a substantial portion of the fund’s assets. - Top 5 Stocks: 24.43%
The top 5 stocks constitute a significant portion of the fund, reflecting its concentrated investment strategy.
Axis Equity Saver Fund Portfolio Holdings
With a strong focus on financial services, technology, and energy, the fund balances risk and opportunity.
- Financial Services: 26.25%
The largest sector allocation, aligning closely with the category average.
- Technology: 14.08%
A significant portion is invested in technology.
- Energy & Utilities: 11.07%
This depicts a higher allocation than the category average, indicating a focus on stable, utility-based investments.
- Consumer Discretionary: 11.07%
This sector contributes to the fund’s diversification.
- Industrials: 9.30%
It represents a substantial investment on manufacturing and related industries.
- Healthcare: 8.47%
A key sector for stability and growth. This share is above the category average.
- Materials: 8.46%
This investment in materials aligns with the sector’s importance in the economy.
- Consumer Staples: 7.47%
Provides defensive investment characteristics, ensuring stability.
- Real Estate: 1.13%
Minimal allocation to real estate.
- Diversified: 0.55%
Small portion allocated to diversified investments.
Top Holdings of Axis Tax Saver Fund Direct Growth
As of Sep 10, 2024, following are the top holdings of the Axis ELSS Tax Saver Fund:
- Torrent Power (Energy & Utilities): 5.92%
- HDFC Bank (Financial): 5.89%
- Bajaj Finance (Financial): 4.56%
- Tata Consultancy Services (Technology): 4.49%
- Avenue Supermarts (Consumer Staples): 3.57%
These holdings highlight the fund’s focus on leading companies across various sectors.
Key Metrics
As of September 6, 2024, the Axis ELSS Tax Saver Fund has an expense ratio of 1.00%, which is relatively low, making it a cost-effective investment option.
The axis tax saver fund direct growth NAV is ₹108.1266, reflecting a recent decrease of -0.68%.
As of July 2024, the fund’s Assets Under Management (AUM) stand at ₹983 Crore, which is substantial but below the category average.
The Axis ELSS Tax Saver Fund has delivered a 19.48% return over the past year. The 3-year annualized return is 11.10%, and the 5-year return is 12.22%, demonstrating its focus on long-term capital appreciation through equity investments.
The fund aims to provide steady returns by investing across various market caps, with a focus on quality businesses for the long term.
Risk and Volatility
The Axis Equity Saver Fund is classified as having Very High Risk. This is due to its primary focus on equity investments, which can experience significant price swings, especially in the short term.
While the fund offers potential for high returns, the inherent volatility can be challenging for risk-averse investors.
Below is the performance breakdown of the fund based on key risk measures as of 31-Aug-2024:
- Mean Return: 10.86%
This is the average return the fund has generated over the last three years.
- Standard Deviation: 15.16%
This ratio indicates how much the Axis Tax Saver Fund Direct Growth fund’s returns deviate from its mean return.
A higher value signals potential for higher volatility.
- Sharpe Ratio: 0.34
The Sharpe ratio measures how well Axis Tax Saver Fund Direct Growth has performed relative to the risk taken.
A lower value indicates that the fund’s returns are less favorable when compared to the risk involved.
- Sortino Ratio: 0.63
This metric focuses on downside risk. It shows how well the Axis Tax Saver Fund performs in market downturns.
A lower Sortino ratio signals the fund might struggle during periods of negative market movements.
- Beta: 1.03
The Beta value shows the fund’s volatility compared to the broader market (BSE 500 TRI).
A Beta slightly above 1 indicates the fund is more volatile than the market. This means its returns tend to fluctuate more than the index.
- Alpha: -7.80
Alpha indicates how much the fund’s returns have deviated from its expected performance based on the risk level.
A negative Alpha suggests that the fund underperformed relative to its benchmark.
Taxation
Being an equity savings mutual fund, the Axis Tax Saver Fund Direct Growth follows the taxation rules for equity-oriented funds:
- 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, with gains up to ₹1 lakh exempt from tax.
Investment Details
Considering an Investment in Axis Equity Saver Fund?
Here’s a quick overview of the investment details:
- Minimum Investment:
- Lump Sum: ₹500
- SIP: ₹100
- Lock-in Period: None
The Axis Equity Saver Fund offers flexibility with no lock-in period. This makes it easy to start with a minimal investment. You can choose to invest either through a lump sum or a systematic investment plan (SIP) to suit your investment strategy.
Invest in Axis Tax Saver Fund Direct Growth via SIP or lump sum and with a free demat account!
How to Invest in Axis Mutual Funds
You can invest in the Axis Tax Saver Fund Direct Growth with Shoonya.
Not only does Shoonya offer a free demat account and zero brokerage trading, but it also provides AI powered insights and advanced trading tools.
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:
- First, you must log in to your Shoonya account at trade.shoonya.com. From the “Orders” section, click on “MF order.”
- Search for the fund you wish to invest in; in this case it will be axis tax saver fund direct growth.
- Choose “Fresh” for a new investment and enter the amount you want to invest.
- You can complete your purchase by selecting the “Purchase” button.
- 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 Tax Saver Fund Direct Growth, you must follow these steps:
- First, you need to log in to your Shoonya account at trade.shoonya.com. Go to “Orders” and click on “XSIP.”
- Find the mutual fund for which you want to set up an SIP. In this case, you must choose Axis Tax Saver Fund Direct Growth.
- 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).
- 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:
- Go to “XSIP,” enter the SIP amount, and select “Fresh” as the transaction type.
- Choose the date when the SIP will be debited directly from your registered bank.
- The approved Mandate ID will auto-reflect.
- Choose “Monthly” for monthly debits and specify the number of instalments (e.g., 24 instalments for a 2-year SIP).
What is ELSS?
An Equity-Linked Savings Scheme (ELSS), also known as a Tax Saver Fund, is a type of mutual fund in India that offers tax benefits under Section 80C of the Income Tax Act, 1961.
- Investments in ELSS are qualified for a tax deduction of up to ₹1,50,000 per year.
- ELSS funds have a lock-in period of three years, which is the shortest among all tax-saving investments.
- These funds mainly invest in equities and equity-related instruments. This means Axis Tax Saver Fund Direct Growth can offer higher returns compared to traditional tax-saving options.
- In addition to tax benefits, ELSS funds aim to build wealth over the long term through equity investments.
Why Consider Axis Equity Saver Fund?
The Axis Equity Saver Fund offers a balanced approach.
If you’re looking for a fund that combines the best of equity growth, market efficiency through arbitrage, and stable debt investments, the Axis Equity Saver Fund might be a great fit for your investment portfolio.
It’s designed for investors seeking a well-rounded fund.
Things to Know Before Investing in Axis Tax Saver Fund Direct Growth
The Axis ELSS Tax Saver Fund is an open-ended equity-linked savings scheme.
- The fund invests in high-quality businesses with solid growth potential and stable financials. It avoids highly cyclical and regulated sectors.
- ₹500 for lump sum and ₹100 for SIP. This allows for flexible entry points.
- The fund has a 3-year statutory lock-in, which can help in long-term financial planning and tax savings.
- The axis equity saver fund direct growth’s performance may vary based on market conditions. This is because it focuses on multiple sectors such as financial services, technology, and consumer discretionary.
- It is ideal for investors seeking tax benefits and long-term capital growth
FAQs| Axis Tax Saver Fund Direct-Growth
Axis ELSS Tax Saver Fund – Direct Plan invests a minimum of 80% of its assets in equity stocks and provides tax benefits under Section 80C of the Indian Income Tax Act.
As of 10-Sep-2024, the NAV of Axis ELSS Tax Saver Fund – Direct Plan stands at ₹108.2950.
The Axis ELSS Tax Saver Fund – Direct Plan has an AUM of ₹38,278 Cr as of 31-Jul-2024.
ELSS can potentially give you higher returns because it’s linked to the stock market. However, PPF is safer with guaranteed returns.
ELSS comes with market risks, and there’s a 3-year lock-in period. This means you can’t access your money during that time. In case, you need to withdra the amount before this time, you might have to pay some penality.
Yes, once the 3-year lock-in period is over, you’re free to withdraw the entire amount.
Source: ValueResearch , Axismf
______________________________________________________________________________________
Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.