Axis Midcap Fund Review: Invest or give it some time to perform?

Published: September 22, 2019 at 10:53 am

This is a performance review of Axis Midcap Fund. We find out how consistently it has performed against its benchmark and peers to find out if one can invest based on recent good performance or give it some more time to perform. Regular readers may recall that last week we had looked at Axis Small Cap Fund

Axis Midcap was started in Feb 2011 with a mandate to invest 75% in midcap companies (later revised to 65% to comply with SEBI rules). Prior to May 2018, it had a specific mandate to focus on companies with the largest market cap within the mid cap space. Since May 2018 it has had no such restriction.

With the little information available about historical market cap allocation, I could not find anything out of place. Axis Midcap Fund has maintained at least 65% exposure to midcap stocks for the last three years. The fund has also held about 15-17% of large cap stocks. Sadly these numbers depend on which source you consult!

VR had listed this fund as a mid and small cap fund in 2015. So at the very least, it had noticeable small cap exposure in the past  Its cash exposure has increased in the last few months. This year it has held about 18-19% cash. In Jan 2018 just prior to the onset of the fall in midcap stocks, the fund was fully invested with 94% equity.

So with the available data, I would like to assume that the recent performance – last 1Y trailing return of the fund is 3.7% while BSE Midcap fell by 10% – is due to a mix of cash, large caps and no small caps (the has held a small exposure in the last few months).


Let us now find out how the fund has performed against benchmarks and a couple of peers.

Axis Mutual Fund Performance Analysis

Let us first compare the fund with Nifty Midcap 150 TRI and BSE Midcap TRI over every possible 3,4, and five year period in its history.

Three years

Axis Midcap Fund Rolling Returns vs Benchmark over three yearsFour Years

Axis Midcap Fund Rolling Returns vs Benchmark over four yearsFive years

Axis Midcap Fund Rolling Returns vs Benchmark over five yearsNow, that is not what you would refer to as consistent performance!

Axis Mutual Fund vs Peers

Let us now compare the fund with two of My Handpicked Mutual Funds July 2019 (PlumbLine) – HDFC Midcap Opp and Franklin Prima.

Axis Midcap Fund vs Peers Three Year Rolling ReturnAxis Midcap Fund vs Peers Four Year Rolling ReturnAxis Midcap Fund vs Peers Five Year Rolling Return

Both the HDFC and Franklin Midcap funds have had a much better track record than Axis Midcap. Only after the fall in midcaps has the Axis fund picked up.

Summary: Invest or give it some time to perform?

Although Axis Midcap has managed to do better than other funds and indices since Jan 2018, it does not have a good long term track record. While existing investors can continue, new investors need to wait and watch and see how it fares in future. There are other funds in the midcap category with an impressive long term category.  Use the Sep 2019 Equity Mutual Fund Performance Screener to find consistent performers.

Although Shreyash Devalkar who has steered Axis Midcap and Axis Bluechip (reviewed here) since Nov 2016 has done a good job, I think this fund needs more time under its belt.

 

Do share if you found this useful

We now publish both equity fund and debt fund (+ hybrid fund) screeners each month!
Use our Robo-advisory Excel Template for a start-to-finish financial plan! Now with a new demo video!  More than 415 investors and advisors use this!
Unlock the secrets of successful financial advisors and entrepreneurs with our new course!
My 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, if we had to groom one ability in our children that is key not only to money management and investing but for any aspect of life, what would it be? 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 parent’s 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!
Did you know? We have more than 1000+ videos on YouTube to explore! Join our YouTube Community!

Join our courses in exclusive Facebook Groups!

  • 550+ 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 2220+ 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 Pattabiraman editor freefincalM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman has co-authored two print-books, You can be rich too with goal-based investing (CNBC TV18) and Gamechanger and seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation to promote unbiased, commission-free investment advice. He conducts free money management sessions for corporates and associations based on money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, Cognizant, Madras Atomic Power Station, Honeywell, Tamil Nadu Investors Association, IIST Alumni Association. For speaking engagements, write to pattu [at] freefincal [dot] com
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
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, seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. It is also available in Kindle format.
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, 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)
Free android apps