Axis Bluechip Fund Direct-Growth

The Axis Bluechip Fund Direct-Growth is an equity scheme offered by the Axis AMC that is designed for long-term capital appreciation through asset allocation, mainly equity and equity-related instruments, including derivatives of large-cap companies. While the direct plan implies that the investor subscribes to the scheme directly with the Fund House,

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the Growth Option ensures that the portfolio yields are reinvested for wealth creation rather than earning profit-sharing periodic dividends. 

The Axis Bluechip Fund Growth-Direct selects large-cap stocks belonging to established companies with a proven revenue generation track record through high-potential business models. Assets are also allocated to smaller enterprises with similar potential for revenue growth and prospects of delivering high yields. Accordingly, the funds are allocated between 80 and 100% assets in high-risk large-cap company stocks. 

The fund suits investors aggressively pursuing risk for capital appreciation to fulfil their long-term financial goals, including children’s education, future, and retirement plans. The investor must look at a minimum horizon exceeding three years to beat inflationary effects and create wealth. 

The Axis Bluechip Fund Growth-Direct asset allocation bears testimony to its investment strategy to tap bluechip stocks to outperform the benchmark index. Accordingly, some of the top holdings in the fund’s portfolio expressed in percentage of net assets are Infosys (9.51), HDFC Bank (9.36), Bajaj Finance (8.69), TCS (7.40), Kotak Mahindra Bank (7.14), and ICICI  Bank (6.28), to name a few. The sector-wise allocation matches the stated list with Financial Services (39.9), IT (18.16), Consumer Goods (8.85), Pharmaceuticals (5.89), Consumer Services (5.60), cornering the top five slots. 

The Axis Bluechip Fund Direct-Growth offers the following options to the investor to choose from:

  • Axis Bluechip Fund Direct-Growth
  • Axis Bluechip Fund Direct-IDCW

The growth option, as already stated, reinvests the fund yield for a cumulative capital appreciation in longer time horizons. At the same time, the IDCW provides periodic dividend payout and reinvestment combined if explicitly chosen by the investor. 

**IDCW: The full form of IDCW is Income Distribution-Capital Withdrawal. The investor can exercise this option to either receive a Payout or Reinvest in the fund. 

Fund Facts

 Parameters  Particulars
Fund Name  Axis Bluechip Fund  Direct-Growth- precludes the IDCW option
Fund House  Axis Asset Management Company Ltd. It is known as   Axis Mutual Fund or the Axis Fund House
Launch Date 1 January 2013
Scheme Category Large-cap Equity Fund
Scheme Type  Open-ended equity scheme predominantly investing in Large-cap stocks
AUM  Rs. 25183 cr as of 30 April 2021
Benchmark Nifty 50 TRI
Application Investment  Minimum: Rs.5000 Additional: Any amount in multiples of Rs.1000 after that
Lock-In  No Lock-in
Entry Load  Not applicable 
Exit Load For switch-out and redemption within twelve months from the purchase date:
  • Up to  10% of the investment amount: Nil
  • For the remaining investment amount: 1%
For switch-out or redemption after twelve months from the purchase date: Nil w.e.f. 25 September 2017.
Risk Grade  Low
Return Grade High
Risk Level  Very High 

Investment Objective

The Axis Bluechip Fund Direct focuses on long-term capital appreciation by creating a diverse portfolio. Thus, assets are predominantly allocated in equity and equity-related instruments with high-risk attributes in large-cap companies capable of steady revenue growth to deliver high yields. 

The fund may invest up to 20% of the assets in other stocks and a small margin in units issued by REIT and InvITs to balance the portfolio composition. 

The Fund Managers target stocks so that they regularly outperform the benchmark index while undertaking a lower risk. The investment strategy adopted by the fund eminently suits investors with a matching risk philosophy as long as the stocks deliver high returns. 

Though the Fund Managers make every effort to achieve the stated objectives, there is no guarantee of its success. The advantage of allocating assets in large-cap blue chip companies is not lost. They are vigorously traded and are less likely to suffer from the ill effects of market volatility than others. 

Considering all these factors, the investors have reposed faith in the fund to earn high returns, as indicated by the Fund AUM of Rs.25183 crores as of 30 April 2021. 

Axis Bluechip Fund Growth-Direct Plan Summary

  • Risk Level: Very High
  • NAV: Rs.44.37 as of 25 May 2021. 
  • Expense Ratio: 0.50% as of 30 April 2021.
  • Fund Started On: 1 January 2013.

Fund Returns Summary Table: (Performance as of March 31, 2021)

  1. Axis Bluechip Fund Growth-Direct Plan (Expressed in Percentage Terms)

    Period  Return % Benchmark Returns % Additional Benchmark Returns %
    NIFTY 50 TRI S & P BSE SENSEX TRI
    Last 1 year 50.71 72.54 69.82
    Last 3 years 17.58 14.58 15.81
    Last 5 years 17.68 15.12 15.73
    Since Inception 16.41 12.95 13.40
  2. Axis Bluechip Fund Growth-Direct Plan (Current value for Rs.10000 invested)

    Period  Annualized Rs. Benchmark Rs. Additional Benchmark Rs.
    NIFTY 50 TRI S & P BSE SENSEX TRI
    Last 1 year 15071 17254 16982
    Last 3 years 16285 15064 15559
    Last 5 years 22578 20228 20773
    Since Inception 35016 27300 28220

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Cumulative Pros and Cons

Pros  Cons
The Direct Expense Ratio is 0.50% and 1.2% lower than Regular  

Equity asset classes can potentially beat inflation and generate wealth  

The open-ended scheme ensures investment liquidity  

The primary target is to outperform the benchmark
Suits only investors pursuing risk for higher yield  

Equity markets are highly volatile, leading to investment value erosion  

Axis Bluechip Fund Growth-Direct precludes dividend payout  

High AUM at Rs.25183 crores tend to slow down returns

Benefits of Axis Bluechip Fund Direct-Growth

Long-term capital appreciation is best achieved by investing in the Axis Bluechip Fund Growth-Direct plan for myriad reasons starting from the scheme-type to the investment objective and the strategy adopted for realizing the goals successfully. Some of the critical benefits accrued out of investing in the fund are:

  • Investment Goals: Investors not opposed to an aggressive pursuit of risk to earn high yields on investment can actively participate in the Axis Bluechip Fund Direct scheme. The fund endeavours to create wealth over the long term by allocating assets in large-cap blue chip stocks in companies with the potential for high revenue growth to deliver higher returns consistently. Large-cap equities as an asset class are the most traded instruments and hence, are liquid to withstand market volatility better. Thus, it can potentially deliver higher returns beating inflation to fund life milestones like children’s education, secure their future, and plan for retirement.
  • Transparency: SEBI Regulations stipulate a transparent regime for daily NAV calculations and disseminate investor information. NAVs are essential for the open-ended Axis Bluechip Fund Growth-Direct scheme as it is continuously subscribed, switched-out, and redeemed by the investor every business day. Thus the scheme NAV is displayed in the Fund House and AMFI portals at the end of every business day. 

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Fund House Details

The Axis Bluechip Fund Growth-Direct is an offering from the Axis Asset Management Company, commonly referred to as the Axis Mutual Fund, and sometimes as the Axis Fund House.  Since its launch in October 2009 as a joint venture between Axis Bank Limited and Schroder Singapore, it has grown significantly to be the seventh-largest Fund House in India, promoting 53 Mutual Fund Schemes in varied categories. It controls an overall AUM of Rs.1.96 lac crores, managing over 6 million active retail and institutional accounts in 100 pan India locations. 

As of today, the principal shareholders in the Mumbai based Axis Asset Management Company are:

  • Axis Bank Limited: Its shareholding in the AMC is 74.99%. The bank became operational in 1994 as a new-age banking institution sponsored by the public sector consortium comprising the Unit Trust of India and the Life and General Insurer to offer the entire gamut of banking services. Today, its banking footprint is spread across every nook and corner of India through a strong network of over 4500 branches, 12000 ATMs, and approximately 4500 cash recyclers. 
  • Schroder Group: The Singapore-based Schroder Investment Management Limited or Schroder Singapore, a wholly-owned subsidiary, holds 25% shares in the Axis AMC. Schroder Singapore has been operating in Singapore since 1976, managing several funds worth US$20 billion on behalf of a varied clientele. It is one of the largest asset management companies in Singapore, and it acts as the Schroder Group’s regional headquarters for the Asia Pacific, covering Australia, China, Hong Kong, Japan, Korea, Indonesia, and Taiwan. 

Who Should You Invest in Axis Bluechip Fund Direct-Growth?

The Axis Bluechip Fund Growth-Direct is a high risk-scheme predominantly investing in large-cap stocks for long-term capital appreciation. Investors with a matching risk profile, typically with investment horizons of five years or more, should find a subscription to the scheme lucrative. 

The diversified portfolio holding blue chip stocks has the potential to beat inflation and create wealth in a longer timeframe to help investors achieve life milestones and fund children’s education, provide for their secure financial future, and plan for a contented retired life. With all these considerations, an indicative list of prospective investors is described below.

  • Resident individuals either singly or jointly, with a maximum of three members.
  • Minors as sole account holders operated by natural or legal guardians.
  • Non-Resident Indians or similar individuals on a repatriation and non-repatriation basis. 
  • HUF through the Karta.
  • Banks and Financial Institutions.
  • Partnership and sole proprietorship firms.
  • Companies, Corporations, Public Sector Undertakings and Enterprises, Government Institutions.
  • Registered Associations, Societies, and Charitable Trusts.
  • Other Mutual Fund and Axis Fund schemes.
  • Entities sponsored by the Indian Armed and Paramilitary Forces. 
  • Research Institutions and similar bodies. 

The Axis Bluechip Fund Growth-Direct is a great way to grow money to meet long-term goals, and life milestones provided the investor is not risk-averse and willing to absorb market fluctuations. The fund asset allocation in equity and equity-related instruments of large-cap companies makes it a high-risk investment. 

Simultaneously, the blue chip stocks constituting the diverse portfolio are likely to withstand market volatility to a great extent by dint of its ready liquidity and rampant trading. While the Fund Manager targets stocks that regularly outperform the benchmark index with a lower risk, success is not guaranteed. 

As a result, sustained higher yield is not assured. However, the asset allocation in the blue-chip large-cap stocks have a proven track record of revenue growth and are most likely to deliver in the long run by beating inflation to create wealth. Investors must heed the advice to stay invested in time horizons of five years or more to reap optimally higher yields.

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