Axis Bluechip Fund is a Large-cap Fund that has managed to give goodreturns over long term and rewarded investors with greater risk-adjusted returns. The fund has corpus reserves of Rs 35,702 crore, and has gained a strong presence owing to its extraordinary performance over the past few years. Axis Bluechip Fund selects stocks based on their ability to grow earnings on a sustainable basis from a medium-term perspective. During the market crash in 2020 while Large-cap funds were unable to keep pace with the market’s volatility, Axis Bluechip Fund managed to outperform the benchmark S&P BSE 100 – TRI, thereby outperforming other funds by a significant margin. In the past 5 years, Axis Bluechip Fund has generated returns at a CAGR of about 16% as compared to the 14% GR delivered by the benchmark S&P BSE 100 – TRI index, thereby rewarding investors by about 2 percentage points, which are impressive.
In terms of performance, Axis Bluechip Fund has done exceptionally well over long term. The fund manager aims at outperforming the benchmark while undertaking risk that is lower than the benchmark. Owing to these reasons Axis Bluechip Fund growth has seen a phenomenal rise. As it is a Large-cap fund, the majority of its allocation is in large caps, which totals to around 80%, while the remaining is in mid and small caps. The process driven fund house to which Axis Bluechip Fund belongs focuses on investing in high-quality stocks in the large cap category which has the potential to grow cash flows from medium to long term.
Axis Bluechip Fund holds a portfolio of 39 stocks including Infosys, Bajaj Finance, ICICI Bank, HDFC Bank, and TCS which figure among the top holdings in the funds’ portfolio having an allocation of 7% to 10% each. Apart from these stocks it also holds Avenue Supermarts, Kotak Mahindra Bank, Reliance Industries, Divi’s Laboratories, Bharti Airtel, etc. among others while simultaneously investing a portion in derivatives for hedging purposes. Around 37.4% of the fund’s portfolio is exposed to banking and finance stocks, followed by infotech, retail and pharma. The remaining part of the portfolio is scattered across petroleum, cement, telecom, engineering and a few others. Axis Bluechip Fund is most certainly suitable for long term who are looking for capital appreciation over a longer period of time spanning 5 years or more.
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