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Axis Bluechip Fund has had an impressive track record. Can this be used as an active large cap fund to beat Nifty at lower risk? Let us find out. This question assumes importance because active large cap funds had struggled to beat large cap benchmarks well before SEBI mandated that 80% of their portfolio consist of large cap stocks.
See this study, for example, Only Five Large Cap funds have comfortably beat Nifty 100! Even among these five, it is debatable how many were pure large cap funds since inception. The definition of what a large cap stock is has always been the same: it’s market capitalization should be within the top 100 of all stocks listed at the NSE (or BSE). However, mutual funds had considerable freedom in picking stocks outside of the top 100, and that is (was?) a key reason for outperformance against the Nifty or the Sensex.
Going forward, assuming fund houses respect SEBI rules, beating Nifty will be tough for large cap funds and hence the question about Axis Bluechip fund assumes importance. This is a case where the historical nature of the fund is more important than its risk or reward profile. So the only reliable way to find out is to dig through Axis fund factsheets
Axis Bluechip Fund: Interesting facts
- Launched in Jan 2010 as “Axis Equity Fund” merely as an open-ended growth scheme. From June 2017 it was labelled as a large cap scheme.
- It operated as a large and midcap fund from inception to October 2017.
- It became Axis Bluechip Fund from May 2018
- The fund appears to have held ICIC, HDFC bank from inception (I did not check every factsheet)
Axis Bluechip Fund vs Nifty 50 TRI
The key finding here is that Axis Bluechip is effectively from Nov 2017 only. This is the performance against Nifty in that period.
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Completely agree with the writer. You can also invest in a very low cost index fund for large cap exposure. costs are 0.10%
More I read, more I am confused…
Please advise if the below funds are good for long term wealth creation.. I know the forum doesn’t give any kind of approvals, but still. Please!
Axis Blue Chip (Large)
Mirae Emerging (Large & Mid Cap)
Axis MidCap
PPFAS MultiCap
Should I replace any of the above.
Appreciate a revert
Thanks