axis long term equity fund long term equity fund...axis mutual fund 2 variation in top and bottom...
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AXIS LONG TERM EQUITY FUND An open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit
Stock returns vary widely, high risk not equal to high return
Axis Mutual Fund 2
Variation in top and bottom stocks over the last 10 years
% CAGR (CY 08-18)
BSE 100 index 14.5
Top quartile 26.2
Bottom quartile (15.9)
Our strategy relies on bottom up selection of quality companies that can deliver sustainable growth
Source: Bloomberg, Past performance may or may not be sustained in future. BSE 100 is used in this example only for illustrative purposes only. The benchmark of the scheme is S&P BSE 200 Index.
Data as on 31st Dec 2018
Weak companies have
destroyed significant
investor wealth
We offer a tight basket of clearly positioned equity funds
Note: Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets. ^Open-ended Equity-Linked Savings Scheme
with a 3 year lock in. The bubbles in the chart are proportionate to their sizes respectivelyMarket caps are defined as per SEBI regulations as below: a. Large Cap: 1st -100th company in terms of full market
capitalization. b. Mid Cap: 101st -250th company in terms of full market capitalization. c. Small Cap: 251st company onwards in terms of full market capitalization. Please refer annexure for type of scheme for each of
the above mentioned schemes
Active Risk
Axis Long
Term Equity
Fund^
Axis Midcap Fund
Axis
Bluechip
Fund
Axis
Focused 25
Fund
Axis Small Cap Fund
Large Cap: 50 - 100%
Mid Cap: Max 50%
>65% in Midcaps
>90% in top 200 companies by
market cap
Large Cap: 80 - 100%
Active
Re
turn
s >65% Small caps
Axis
Multicap
Fund Large Cap: 50 - 100%
Mid Cap: Max 50%
Large Cap
Focused
ELSS
Multicap
Midcap
Smallcap
Axis Growth Opportunities Fund
Large Cap: 35 - 65%
Mid Cap: 35 - 65%
Large & Midcap
Axis Long Term Equity Fund: Positioning
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An open ended equity linked saving scheme with a statutory lock
in of 3 years and tax benefit
Offers tax benefit under section 80C of the Income Tax Act, 1961
Invests across market cap
Large caps around 50-100% and
midcaps up to 50%
Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s v iew of the equity markets. Market cap buckets as per SEBI/AMFI classification.
Invests in quality businesses for
the long term through bottom up
stock picking
3 year lock-in eliminates near term
pressure on stock selection
Can support quality businesses
through their market cycle
Axis Mutual Fund
Unique long term orientation that helps investors
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Benefits of 3 year lock-in period
Investor Perspective Fund manager perspective
Investment horizon aligned with the market cycle Focus on long term wealth creation opportunities while ignoring
short term market noise
Discipline of looking at long term factors while making
allocations No tactical/hot money flows into the fund
Wealth creation potential Greater leeway to enter/ exit positions –provides headroom to
manage a large corpus
A unique strategy that has a consistent track record of generating wealth for investors for the long term
Axis Mutual Fund
What do we mean by quality businesses?
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Strong competitive
positioning
Cash flow generating with
sound balance sheet
Credible management team Sustainable Growth Potential
Focus on steady consistent and long term portfolio with limited down side risk
Axis Mutual Fund
Summary – Portfolio construction
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We invest in
• High quality leaders, solid growth, impeccable execution, strong finances especially decent Operating Cash Flows and less geared
We avoid
• PSUs, highly cyclical and highly regulated sector
Outcome: Stringent benchmark agnostic stock selection, compact
portfolio reflecting high conviction, long holding periods
Bottom up portfolio aiming to deliver steady and consistent returns for investors
Axis Mutual Fund
Source : ValueFY, ACEMF. Axis MF Research
Note: Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets. Market cap buckets as per
SEBI/AMFI classification. Past performance may or may not be sustained in the future. Stock(s) / Issuer(s)/ Top stocks with increased or decreased exposure mentioned above are for the
purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation to buy/sell/ hold. The fund manager(s) may or may not choose to hold the stock
mentioned, from time to time.
A Multicap Strategy
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0%
20%
40%
60%
80%
100%
Sep-17 Mar-18 Sep-18 Mar-19 Sep-19
Large Cap Midcap Small Cap
Small Cap
Mid Cap
Large Cap
Note: Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets. Matched Portfolio refers to the % of the portfolio
overlapping with its benchmark.
Focus on bottom up stock picking while being benchmark agnostic
9 Axis Mutual Fund
20%
22%
24%
26%
28%
30%
32%
Sep-17 Mar-18 Sep-18 Mar-19 Sep-19
Common positions between portfolio and benchmark
Changes made to the portfolio over the last year
While the broad positioning of the portfolio has remained stable over the last 1 year, stock specific adjustments have
been made
Portfolio Characteristics Sep 18 Sep 19
Matched Portfolio 28% 30%
No. of Stocks 35 33
Market Cap Mix* Large Caps:66%, Mid Caps: 23%, Small Caps:
5%
Large Caps:67%, Mid Caps: 27%, Small
Caps: 1%
Top 10 stocks (% of portfolio) 59% 65%
Long term holdings No of stocks held for at least 3 years: 19 (
74%)
Top stocks with increased
exposure/entries
Change in exposure (%)
over last year
Top stocks with reduced exposure/
exits
Change in exposure (%)
over last year
Bajaj Finance Limited 4.6% Sun Pharmaceutical Industries Limited -4.0%
Avenue Supermarts Limited 3.0% Tata Consultancy Services Limited -3.5%
Nestle India Limited 2.3% Eicher Motors Limited -2.6%
Info Edge (India) Limited 1.9% Bandhan Bank Limited -2.5%
Kotak Mahindra Bank Limited 1.9% HDFC Bank Limited -1.6%
Source : ValueFY, ACEMF. Note: Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets. Market cap buckets
as per SEBI/AMFI classification. Past performance may or may not be sustained in the future. Stock(s) / Issuer(s)/ Top stocks with increased or decreased exposure mentioned above are for the purpose of
disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation to buy/sell/ hold. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time.
Axis Mutual Fund
Portfolio & Risk Parameters (30th Sep 2019)
Private and confidential, strictly for internal purpose
*Note: Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the
equity markets. Past performance may or may not be sustained in the future. Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of
disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may not choose to hold the
stock mentioned, from time to time. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s).
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Performance of other schemes managed by the fund manager are made available in Annexure
One of the lowest lock-in periods among other tax saving instruments
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* Subject to conditions. Please consult your tax / investment advisor for more details. Numbers indicate lock in period in years. Tax benefit under section 80C of the Income Tax Act, 1961.
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3 3-5
5
5
Public Provident Fund*
(PPF)
National Savings
Certificate*
(NSC)
Life Insurance
Premium / ULIPs*
(Unit Linked
Insurance Plans)
Tax Saving Bank
Deposits*
Equity Linked
Savings
Scheme from
Mutual Funds
(ELSS)*
Axis Mutual Fund
Axis Long Term Equity Fund* : SIP performance (30th Sep 2019)
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SIP Investments Since Inception SIP 5 Year SIP 3 Year SIP 1 Year SIP
Total Amount Invested 1,170,000 600,000 360,000 120,000
Market value as on September 30, 2019 2,780,483 801,257 427,607 130,490
Returns (Annualised) 16.96% 11.53% 11.52% 16.66%
Benchmark Returns (Annualised) 11.22% 9.09% 7.17% 5.01%
Additional Benchmark Returns (Annualised) 10.98% 9.88% 9.38% 7.06%
Above investment simulation is for illustration purpose only and should not be construed as a promise on minimum returns and safeguard of capital. Above calculation is
based on Regular Plan - Growth Option NAV. Assuming Rs. 10,000 invested systematically on the first business day of every month over a period of time. Past performance
may or may not be sustained in future. Returns greater than 1 year period are compounded annualized. Benchmark: S&P BSE 200 TRI. Additional Benchmak: Nifty 50
TRI. Inception Date: Dec 29, 2009. This scheme is managed by Jinesh Gopani. Please refer to the Annexure for returns of all the schemes managed by him. * An open
ended equity linked savings scheme with a 3 year lock-in. SIP returns are computed after accounting for the cash flow by using XIRR method (investment internal rate of
return). The performance given above is for Other than Direct Plan unless specified.
Annexure
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Annexure
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Product Labelling
Fund Name Riskometer Product Labelling
Axis Long Term Equity Fund (An open ended equity linked saving scheme with a
statutory lock in of 3 years and tax benefit)
This product is suitable for investors who are seeking*
• Capital appreciation & generating income over long term
• Investment in a diversified portfolio predominantly
consisting of equity and equity related instruments.
Axis Focused 25 Fund (An open ended equity scheme investing in maximum
25 stocks investing in large cap, mid cap and small
cap companies.)
This product is suitable for investors who are seeking*
• Capital appreciation over long term
• Investment in a concentrated portfolio of equity & equity
related instruments of up to 25 companies
Axis Emerging Opportunities Fund –
Series I (1400 Days) (An Close ended equity fund)
This product is suitable for investors who are seeking*
• Capital appreciation over long term
• Investment in a diversified portfolio of equity and equity
related instruments of midcap companies
Axis Emerging Opportunities Fund –
Series II (1400 Days) (An Close ended equity fund)
This product is suitable for investors who are seeking*
• Capital appreciation over long term
• Investment in a diversified portfolio of equity and equity
related instruments of midcap companies
17 *Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Product Labelling
Fund Name Riskometer Product Labelling
Axis Bluechip Fund (An open ended equity scheme predominantly
investing in large cap stocks)
This product is suitable for investors who are seeking*
• Capital appreciation over long term
• Investment in a diversified portfolio predominantly
consisting of equity and equity related instruments of
large cap companies
Axis Multicap Fund (An open ended equity scheme investing across large
cap, mid cap, small cap stocks)
This product is suitable for investors who are seeking*
• Capital appreciation over medium to long term
• Investment in a diversified portfolio consisting of
equity and equity related instruments across market
capitalization.
Axis Midcap Fund (An open ended equity scheme predominantly
investing in Mid Cap stocks)
This product is suitable for investors who are seeking*
• Capital appreciation over long term
• Investing predominantly in equity & equity related
instruments of Mid Cap companies.
Axis Small Cap Fund (An open ended equity scheme predominantly
investing in small cap stocks )
This product is suitable for investors who are seeking*
• Capital appreciation over long term
• Investment in a diversified portfolio of equity and
equity related instruments of small cap companies
18 *Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Product Labelling
Fund Name Riskometer Product Labelling
Axis Growth Opportunities Fund
(An Open-ended Equity Scheme investing in both
large cap and mid cap stocks)
This product is suitable for investors who are seeking*:
• capital appreciation over long term
• investment in a diversified portfolio predominantly
consisting of equity and equity related instruments
both in India as well as overseas
19 *Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Statutory Details and Risk Factors
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Data updated as on 30th Sep 2019
Disclaimer: Past performance may or may not be sustained in the future. Sector(s) / Stock(s) / Issuer(s) mentioned above are for the
purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may
not choose to hold the stock mentioned, from time to time.
Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd.
(liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the
AMC). Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme.
This document represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision.
Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates
shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No
representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The
AMC reserves the right to make modifications and alterations to this statement as may be required from time to time.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
Thank you