Last Updated on December 29, 2021
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
Four Years
Five years
Now, 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.
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.
🔥Enjoy massive discounts on our courses and robo-advisory tool! 🔥
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.
Explore the site! Search among our 2000+ articles for information and insight!
About The Author
Dr 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!
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
- Twitter @freefincal
- Subscribe to our Youtube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing
Published 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
This 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
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 300 (instant download)