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.
Not exactly spectacular and not terrible either. The performance in the last year is not a great sight, but it has managed a recovery in the previous three months.
The drop in the outperformance of the fund over 1615 3-year data points can be seen below.
Therefore going forward, it would only be impossible to assume Axis Bluechip Fund will be able to beat Nifty 50 TRI over any given period. There is not enough evidence. New investors wanting a solid large cap based equity portfolio should consider either hybrid funds. Please consult these articles to understand why:
- Why Aggressive Hybrid (balanced) Mutual Funds score over diversified funds
- Balanced Advantage vs Aggressive Hybrid Funds: When to use what
- 11 aggressive hybrid (balanced) mutual funds that have beat Nifty 100!!
- Using Balanced Mutual Funds As The Core Equity Portfolio Holding
You can consider building your portfolio with My Handpicked Mutual Funds July 2019 (PlumbLine) or shortlist your own funds with the Equity Mutual Fund Performance Screener July 2019
Have you visited the freefincal YouTube Channel? I try and post one video a day (if possible) and not all videos are based on articles here. For example: check the latest two videos:
How to profit from content writing: is our new ebook for those interested in getting side income via content writing. It is at available at a 50% discount for Rs. 500 only!
Use our Robo-advisory Excel Template for a start-to-finish financial plan!
Join our courses in exclusive Facebook Groups!
- 520+ members are now part of our new course: How to get people to pay for your skills! (watch 1st lecture for free). 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 how to achieve by showcasing your skills and building a community that trusts you and pays you!
- Goal-based portfolio management! Join 2125+ members and 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 of Rs. 3000 only. No recurring fees! Life-long access to videos (10+ hours content) in an exclusive Facebook Group! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Want to check if the market is overvalued or undervalued? Use our market valuation tool (will work with any index!) or you buy the new Tactical Buy/Sell timing tool!
We publish mutual fund screeners and momentum, low volatility stock screeners .every month.
About the Author

About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on developments in mutual funds, stocks, investing, retirement and personal finance. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than one million readers a year (2.5 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
- Twitter @freefincal
- Subscribe to our Youtube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing

Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want

Your Ultimate Guide to Travel

Free android apps
- All calculators from our book, “You can be Rich Too” are now available on Google Play!
- Install the Financial Freedom App! (Google Play Store)
- Install Freefincal Retirement Planner App! (Google Play Store)
- Find out if you have enough to say "goodbye" to your employer (Google Play Store)