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Axis Long Term Equity Fund : Fund Review

Axis Long Term Equity Fund is the largest ELSS tax saving fund in India.

This tax saver has assets worth Rs 17,263 crore managed by Mr. Jinesh Gopani. The objective of the fund is to generate income and long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related securities. Investment in this fund would save you tax on Rs 1,50,000 with a lock-in period of 3 years.

Performance

The fund is known for its consistent performance since its inception in 2009. It stands in top 5 in the category of tax saving funds.

 

 

The fund outperformed its benchmark S&P BSE 200 index since 2013. It is 8-10 percentage points above the benchmark in 1 year and 5-year returns. Below is the SIP performance of the fund as on 28th March 2018. The benchmark is the S&P BSE 200 and the additional benchmark is Nifty. The fund has beaten both the benchmarks by about 7% since inception and 5% in 1 year and 5-year returns.

 

 

Within the category, the fund has outperformed the category average by almost 5 to 10 percentage points in 1 year, 3 year and 5-year returns.

 

 

Axis Long Term Equity Fund stands 2nd in the category when compared to its peers. The fund has given the highest returns in the 1 year and 5-year category. The fund stumbled in 2016 leading to lower 3-year returns when compared to its peers. But it got a higher rating with its performance in 2017.

 

Fund1 Year Return (%)3 Year Return (%)5 Year Return (%)
Axis Long Term Equity Fund(G)18.57%10.6%22.55%
Aditya Birla Sun Life Tax Relief 96 Growth17.83%12.9%21.9%
L&T Tax Advantage Fund Growth12.71%13.7%18.9%
IDFC Tax Advantage (ELSS) Fund - Regular Plan - Growth18.2%12.6%21.4%
Aditya Birla Sun Life Tax Plan Growth17.51%12.4%21.1%


Fund Information
 

This high-risk tax saving fund is a good multi-cap fund. The fund’s investment strategy focuses on buying quality growth stocks. While selecting stocks, the fund looks for superior and scalable businesses, a high return on capital and secular growth. It invests in quality businesses for the long term through bottom-up stock picking. It invests across large (60-70%), mid (20-30%) and small cap (about 10%).

The top five holding sectors constitute 88% of the portfolio. These include financials (36.9%), consumer cyclical (24.8%), technology (13.4%), basic materials (8.1%), and healthcare (4.7%).

Recommendation

It is recommended to invest Axis Long Term Equity Fund through SIP. This will help in tax saving and also reduce the burden at the end of the year. Ideal for medium-term goals. Invest in this fund to maximize your returns for a foreseeable future.

Smart Tip: Over the years, ELSS funds have given the best returns out of all the tax saving instruments under 80 C like PF, FDs, ULIPs, Post office deposits, KVP etc. This fund has a lock-in for 3 years. If you are looking for tax saving then this one can be on the list for sure.

 

Fund NameAxis Long Term Equity Growth
Upwardly Rank2
Launch DateDecember 29th, 2009
AUMRs 17263 Cr
Return (Returns greater than 1 year are annualized)Since Launch: 18.59 %
1 Year: 19.35%
3 Year: 10.36%
5 year: 22.55%
Expense Ratio1.77%
Fund Category RiskHigh
Investment PlanGrowth
Minimum Investment Horizon3+ years
Minimum InvestmentRs 500
Minimum Additional InvestmentRs 500
Exit Load0
Lock in period3 years
Fund ManagerJinesh Gopani

 

Know how much can be saved from being paid in the form of taxes. Check out the top tax saving mutual funds at Upwardly. Happy Investing!

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