One of the most important principles for investing given by Warren Buffet is, “Focus on the play-field, not on the scorecard.” The key to success in equity investment is ‘Patience’, and this is where most of us lack. Many of us keep a regular watch on the market moves and count the profits on a daily basis. In fact, many investors look only at the short-term fund performance and if their fund does not perform better, they get frustrated. The concept of long-term equity investment is much greater than this, and that is what one needs to understand before investing .
The Axis Long-Term Equity Fund is among those plans which provide extreme benefits of equity investments and tend to generate a huge wealth for the investors over a long term period. One just needs to understand why investing in it is worthwhile for one’s portfolio. So here, we will take a research analysis of Axis Long-Term Equity Plan to understand the essence of equity investments that it offers.
Investment Details of Axis Long Term Mutual FundThe primary objective of the scheme is to create income and long-term capital appreciation through a well-diversified portfolio of predominantly equity and equity-related securities. It further aims to provide the 80C investment benefit to the investors for saving on the tax amount. It is an open-ended plan having growth style of investing, and thus aims to enhance the capital and create wealth for a secure financial future. The minimum cost of investing in this plan is Rs.500 only, and investors can opt for either SIP or lump sum mode of investing in it.
Axis Long Term Equity Fund Growth NAV amounted to Rs.33.002 as on March 10th, 2017. Its AUM as on January 31, 2017, amounted to Rs. 11,144 crore. Being an open-ended and growth-oriented plan, the investors have the feasibility of easy investing in this plan.
Performance AnalysisThough the track record or past performance of the scheme is not the basis of making the choice of fund, it helps in getting a rough idea about the potential of the plan to generate the expected returns. Its absolute annual returns in the past five years have been favourable and reached up to 65.90% in the year 2014. Moreover, the annualised returns of the scheme for three- and five-year investments are 21.60 and 21.50 percent respectively. In terms of returns and performance, it has outperformed its benchmark, i.e., S&P BSE 200. The scheme is ranked Third in the ELSS category as per CRISIL rating for the quarter which ended in December 2016.
The scheme has a well-diversified portfolio which consists of the best-performing industrial sectors. They include banking and finance, automotive, engineering, chemicals, pharmaceuticals, and consumer durable. The top-holdings of the scheme are among the high-growth companies which tend to offer higher returns on the investments. The holdings include the following companies:
1. Kotak Mahindra Bank
2. HDFC Bank
3. Maruti Suzuki
5. Motherson Sumi
6. Pidilite Industries
7. ech Mahindra
8. Bajaj Finance
The above description shows that the returns expected on these schemes are higher and one can gain substantial money growth on their funds by investing in this plan.
The equity investments are the best source of making financial goals accomplished, and Axis Long-Term Equity Fund (G) provides the opportunity to attain the benefits in a smarter way. By appreciating the capital worth over time, it will help in creating a huge wealth for the investors. Thus, we can conclude here that investing in this plan will help us in achieving our goals and it would make our investment portfolio worthwhile.
The investors who have doubts in mind and want to know whether they should invest in Axis Long-Term Equity Fund or not will get an apt answer here. This article elaborates the reasons why one must invest in this plan to grow capital for a secure financial future.
Dishika is an expert in fund recommendation and working with MySIPonline to help various investors in making a wise investment decision. His earlier writings have been a helping tool for many investors in gaining substantial knowledge about mutual fund investments.