Axis Multicap Fund Direct Growth Plan: Insights and Performance Metrics- 2024

Whenever we talk about investing, the first thing that you hear is diversification. It is key to managing risk in your overall journey of stock market investing. Now, how do you invest in large, mid and small-cap companies together? The key is the Axis Multicap Fund Direct Growth plan.

By investing in a mix of large, mid, and small-cap companies, this fund aims to provide a balanced approach. This strategy not only reduces the impact of poor-performing stocks but also opens up opportunities in various sectors for long-term growth.

In this blog we will show you the Axis Multicap Fund NAV history and its risk profile.

Let’s learn about Axis Multicap Fund Direct Growth- a perfect blend of stability and growth.

Fund Management and Objectives

The Axis Multicap Fund Direct-Growth fund follows a multi-cap strategy. This strategy reduces concentration risk, which otherwise occurs when investments are focused solely on one market cap.

The Axis Multicap Fund ensures that at least 25% of the investments go into each of these categories. Thus providing balance and flexibility for the fund manager to adjust based on market conditions.

As per the Axis Multicap Fund portfolio:

Large-cap stocks offer stability.

Mid-cap stocks focus on new opportunities.

Small-cap stocks target high-growth potential companies.

Invest in Axis Multicap Fund Direct Growth with a free demat account!

How the Axis Multicap Fund Works

The Axis Multicap Fund invests in companies of different sizes—large, mid, and small caps. 

1. Target Leaders in Large Markets

The fund focuses on strong, well-established companies (large caps) that are already leaders in big, organised markets.

These companies add stability to the Axis Multicap Fund portfolio since they are less risky.

2. Target Challengers in Mid-sized Markets

It invests in mid-cap companies that are challengers, competing with larger companies.

The Axis Multicap fund selects those that have a strong chance of growing as the market evolves from unorganised to more structured.

3. Target Emerging Opportunities

The fund looks for small-cap companies that have the potential to grow and become future leaders.

These emerging companies can provide high growth but may have a bit more risk.

Investing in the Axis Multicap Fund could be a good option if you want to balance risk and return through different sectors and market segments.

• The fund focuses on fundamental analysis and aims to identify companies with strong growth potential.
• It is ideal for investors with a long-term investment horizon of at least 5 years.
• It measures performance against the NIFTY 500 Multicap 50:25:25 TRI benchmark.
• Investors can start with a minimum investment of ₹100.

Performance and Returns

Since its inception, the Axis Multi Cap Fund Direct Growth has shown promising growth. 

The fund has delivered a return of 18.25% over the past year, outperforming several of its peers in the multi-cap category. Since its launch, it has averaged an annual growth rate of 14.85%, making it an attractive option for long-term investors.

As of October 13, 2024, the Axis Multicap Fund NAV is ₹12.38.

As of August 2024, the fund has an Assets Under Management (AUM) of ₹5,832 Crore.

Investment Allocation

The Axis Multi Cap Fund Direct Growth portfolio consists of a diversified mix.

• Large Cap: 43%
• Mid Cap: 29%
• Small Cap: 28%

The fund’s total portfolio consists of 55 stocks, ensuring adequate diversification. 

The top 5 sectors contributing to the Axis Multicap fund portfolio are:

• Financial Services – 30%
• Information Technology – 15%
• Consumer Goods – 12%
• Automobile – 8%
• Healthcare – 7%

Top 5 holdings in Axis Multicap Fund portfolio include:

• HDFC Bank Ltd – 9.10%
• Infosys Ltd – 7.85%
• ICICI Bank Ltd – 6.50%
• Reliance Industries Ltd – 5.25%
• Bajaj Finance Ltd – 4.10%

Key Metrics

As of August 2024, the fund has an expense ratio of 1.25%, which is lower than the category average of 1.75%.

Fund Details	Information
AUM (Assets Under Management)	₹ 6,551.48 as of Aug 2024
Category	Multi Cap Fund
Fund Managers	Sachin Jain, Nitin Arora, Hitesh Das, Shreyash Devalkar
Exit Load	1% if redeemed within 12 months (except for 10% of investment)
Entry Load	Nil
Minimum Investment	₹100 (Lumpsum & SIP)
Benchmark	NIFTY 500 Multicap 50:25:25 Index

The axis multicap fund growth has delivered strong returns over various time frames:

• 1 Year Return: 52.55%
• 2 Year Return: 38.54% 
• 1 Month: 0.53%

Risk and Performance of Axis Multicap Fund

This fund is classified as Very High Risk, which means it can give high returns, but there’s also a chance of losing money.

1. Standard Deviation (Std Dev %):

It shows how much the returns vary from the average. The higher this number, the more the returns fluctuate.

BSE 500 TRI has a standard deviation of 12.95%. Multi-cap funds, in general, show 13.24%.

2. Sharpe Ratio:

This measures the return you get for the risk you’re taking. A higher number means better risk-adjusted returns.

BSE 500 TRI has a Sharpe ratio of 0.93, while multi-cap funds, on average, have 1.21.

3. Sortino Ratio:

It is similar to Sharpe but only looks at downside risk (the risk of losing money).

The BSE 500 TRI has a Sortino ratio of 1.72, while multi-cap funds show 2.02.

4. Beta:

This measures how much the returns of the fund change as compared to the market. A beta of 1 means it moves exactly like the market.

The beta for multi-cap funds is 0.94, meaning it’s slightly less volatile than the market.

5. Alpha:

This measures the extra return the fund gives above the market’s return.

For multi-cap funds, the alpha is 4.51. This means they have outperformed the market by 4.51%.

Taxation for Axis Multicap Fund

If you’re investing in the Axis Multicap Fund, here’s how it will be taxable:

1. Short-Term Gains (if you sell your investment in less than a year):

You’ll pay 15% tax on the profits you make.

2. Long-Term Gains (if you sell after holding for more than a year):

You’ll pay 10% tax on profits, but the first ₹1 lakh of gains are tax-free.

This is without any benefit for inflation (called indexation).

3. Dividends (if you earn money from dividends):

Dividends are taxed according to your income tax slab rate. This means the tax depends on your overall income for the year.

So, if you hold your investment for more than a year, you get tax benefits on your profits!

Minimum Investment and Lock-in Period

The minimum investment amount is ₹100 for both lump sum and SIP payments. There is no lock-in period for the Axis Multicap Fund Direct Growth plan.

Invest in Axis Multicap Fund Direct Growth — SIP or lump sum at zero brokerage for life!

How to Invest in Axis Mutual Funds

You can invest in the Axis Multicap Fund Direct Growth plan with Shoonya. 

Shoonya offer a free demat account, lifetime zero brokerage trading, advanced trading tools, 100+ technical indicators, and much more!

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 Multicap Fund Direct Growth plan.
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. You will receive a payment link on 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 Multicap Fund Direct Growth plan, 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, Axis Multicap Fund Direct Growth plan.
3. If this is your first SIP with Shoonya, you need to create a Mandate ID. 

For that, you must 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.

Why Invest in Axis Multicap Fund?

By investing across large, mid, and small-cap stocks, the Axis Multicap Fund Direct Growth fund balances stability and growth potential.

The mix of stable large companies and high-growth mid/small companies offers the chance for higher returns over the long term.

With India being one of the fastest-growing economies, the Axis Multicap Fund is likely to benefit from the ongoing economic expansion and infrastructure investments.

Suitability of this Fund| Who Should Invest?

Axis Multicap Fund Direct Growth is suitable for investors who:

• If you want to invest in a diversified mix of stocks across different market sizes.
• You are looking for long-term capital growth.
• You can tolerate market fluctuations as the fund carries a high-risk level.

Conclusion

The Axis Multi Cap Fund Direct Growth is an excellent choice for investors looking for a diversified portfolio across market capitalizations. It balances stability with growth potential. It is undoubtedly a great fit for long-term investors looking for a mix of returns and risk management.

FAQs| Axis Multicap Fund Direct Growth Plan

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.