Axis Bluechip Fund: Performance Report

Published: March 19, 2022 at 6:00 am

In this edition of the “fund performance report”, we look at Axis Bluechip fund. Launched in Jan 2010, the fund has an AUM of about Rs. 34,000 Crores – the highest among actively managed large cap funds.

Disclaimer: Fund performance reports present return and risk analysis of a fund with representative benchmarks and not investment recommendations. It must be expressly understood that the data below reflect only past performance and is in no way an indication of future performance.  Our investment recommendations can be found here: Handpicked List of Mutual Funds Oct-Dec 2021 (PlumbLine).

Considering the performance of active large cap funds, this report is more relevant to existing investors of the fund than potential new investors. See: Have active large cap funds performed better after the March 2020 market crash?

The market allocation history of the fund is shown below. The fund has largely been large cap oriented with a small exposure to mid cap stocks now and then.

Axis Bluechip Fund Market cap allocation history
Axis Bluechip Fund Market cap allocation history

We will use three metrics to analyze performance consistency compared to the fund’s benchmark – Nifty 100 TRI. Analysis such as this can be found for 350+ equity funds in our monthly mutual fund screener.


Build a complete financial plan with our Robo Advisory Tool. More than 1000 investors and financial advisors use it!
Get free money management solutions delivered to your mailbox! Subscribe to get posts via email! (Subscribers get exclusive discounts!)


New Tool! => Track your mutual funds and stocks investments with this Google Sheet!

1 Rolling return outperformance consistency: the fund returns are compared with category benchmark returns over every possible 3Y,4Y, 5Y period. Higher the outperformance consistency, the better. Suppose 876 fund returns were compared with 876 benchmark returns, and the fund has beaten the benchmark 675 times. The consistency score will be 675/876 ~ 77%.

Three Years

No of rolling return entries Index (3 Years)1518
No of rolling return entries Fund (3 years)1518
No of times fund has outperformed the index (3 years)1344
rolling return outperformance Consistency Score (3 years)89%

Four years

No of rolling return entries Index (4 Years)1271
No of rolling return entries Fund (4 years)1271
No of times fund has outperformed the index (4 years)1268
rolling return outperformance Consistency Score (4 years)100%

Five years

No of rolling return entries Index (5 Years)1024
No of rolling return entries Fund (5 years)1024
No of times fund has outperformed the index (5 years)1024
rolling return outperformance Consistency Score (5 years)100%

That is indeed excellent consistency.

2 Upside performance consistency over every possible 3Y,4Y, 5Y: Higher the better. A score of 70% means, 7 out of 10 times, the fund performed better than the category benchmark when the benchmark was moving upThis is a measure of reward. It is computed from rolling upside capture data (see link below).

upside performance consistency (3 years)33%
upside performance consistency (4 years)29%
upside performance consistency (5 years)12%

This is not uncommon. Most funds do not exhibit consistent upside capture > 100% (higher returns than the benchmark’s positive monthly return). See for example: Strange, but true! How mutual funds beat the index!

3 Downside performance consistency over every possible 3Y,4Y, 5Y. Higher, the better. A score of 60% means, 6 out of 10 times, the fund performed better than the category benchmark when the benchmark was moving down. This is a measure of risk protection. It is computed from rolling downside capture data. Read more: An introduction to Downside and Upside Capture Ratios.

downside protection consistency (3 years)52%
downside protection consistency (4 years)60%
downside protection consistency (5 years)69%

These numbers are reasonable if not excellent.

Trailing returns and volatility

These are the returns and volatility as of 4th March 2021. Source: Equity Mutual Fund Screener Mar 2022.

MetricNifty 100 TRIAxis Bluechip Fund – Direct Plan
1Y return%9.42%7.04%
1Y volatility%3.96%4.08%
2Y return%21.74%16.79%
2Y volatility%7.79%6.59%
3Y return%15.14%17.39%
3Y volatility%6.79%5.67%
4Y return%12.72%15.73%
4Y volatility%6.05%5.17%
5Y return%14.36%18.17%
5Y volatility%5.56%4.74%

The performance of Axis Bluechip Fund since March 2020 has been quite poor. There are opinions on this floating around like “Axis Bluechip was a growth chaser’ the cycle has turned and now is the time for value which is why you see funds like ICICI Value Discovery Fund doing better” etc.

Since the definitions of growth investing and value investing are arbitrary, I would rather stick to the facts and take comfort in a simple observation. No one can escape the law of averages  (including Parag Parikh Flexicap fund!).  I don’t know about growth vs value cycles but outperformance and underperformance wrt benchmark is the inescapable law of nature and the curse of actively managed funds.

Existing investors will have to appreciate that the bang for the buck (expense ratio) has significantly reduced in the last two years. It is perfectly fine to stay on having faith in the fund manager just as it is perfectly fine to exit. Whatever we choose as long as we do not feel superior about it, we should be reasonably happy.

Either way is it a gamble and either way no one knows the future. All I can say is, if I were an investor in Axis Bluechip fund (I am not), I will be inclined to wait a bit longer. But then again, I have tons of patience and don’t fret about fees. I still hold Quantum Long Term Equity, so you can imagine! I do plan to phase it out with UTI Low Volatility index fund (see link in the next para).  Btw I hold Mirae Large Cap and we shall evaluate that next time. For full holdings see Portfolio Audit 2021: How my goal-based investments fared last year.

While existing investors have a dilemma at hand, the message is clear for new investors: buy a large cap index fund. Those who are uncertain or undecided on the active vs passive debate can consider aggressive hybrid funds. At the time of writing all funds in this category are actively managed. At least we would get a bit lower risk and tax-efficient bond holdings for the fees charged. See: Aggressive Hybrid Funds vs Low Volatility Index Funds: Which is better?

Do share this article with your friends using the buttons below.

Use our Robo-advisory Excel Tool for a start-to-finish financial plan! More than 1000 investors and advisors use this!
  • Follow us on Google News.
  • Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
  • Join our YouTube Community and explore more than 1000 videos!
  • Have a question? Subscribe to our newsletter with this form.
  • Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.

Get free money management solutions delivered to your mailbox! Subscribe to get posts via email! (Subscribers get exclusive discounts!)
 
Explore the site! Search among our 2000+ articles for information and insight!

About The Author

Pattabiraman editor freefincalDr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over nine years of experience publishing news analysis, research and financial product development. Connect with him via Twitter or Linkedin or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation for promoting unbiased, commission-free investment advice.
  Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 3000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free!  One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course!  Increase your income by getting people to pay for your skills! More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts you and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!   
Our new book for kids: “Chinchu gets a superpower!” is now available!
Both boy and girl version covers of Chinchu gets a superpower
Both boy and girl version covers of Chinchu gets a superpower.
Most investor problems can be traced to a lack of informed decision-making. We have all made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parents plan for it and teach him several key ideas of decision making and money management is the narrative. What readers say!
Feedback from a young reader after reading Chinchu gets a Superpower (small version)
Feedback from a young reader after reading Chinchu gets a Superpower!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.
Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or you buy the new Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low volatility stock screeners.
About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any paid articles, promotions, PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
Our publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.

Your Ultimate Guide to Travel

Travel-Training-Kit-Cover-new This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 199 (instant download)