One of the best performing large cap funds in the last 10 years: Axis Bluechip Fund

What is a blue chip fund?

Blue chip stocks are very large corporations with strong nationwide or even global reputations. Based on market capitalization, they are the largest of the large cap stocks. A blue chip fund invests primarily in blue chip stocks. As per SEBI’s categorization of mutual fund schemes, blue chip funds are large cap funds.

About Axis Bluechip Fund

Axis Bluechip Fund was launched in January 2010 and has around Rs 34,584 Crores of assets under management (AUM). It is one of the most popular large cap funds. The scheme has delivered 13.5% CAGR return since inception. The expense ratio of the scheme regular plan is 1.67%. Axis Bluechip Fund is one the best performing large cap funds in the last 5 – 10 years (see our research Mutual Fund Trailing Returns - Equity: Large Cap).Shreyash Devalkar and Hitesh Das are the fund managers of this scheme.

Wealth creation by Axis Bluechip Fund

Axis Bluechip Fund is one of the biggest wealth creators among all large cap funds in the last 10 years. The chart below shows the growth of Rs 10,000 lump sum investment in Axis Bluechip over the last 10 years (ending 19^th January 2022). Your investment would have multiplied 4.7 times in the last 10 years at a CAGR of nearly 17%.

Source: Advisorkhoj Research

Investment Strategy

Axis Bluechip Fund invests primarily in Nifty 50 stocks. Nifty 50 is the index of the 50 largest stocks based on free floating market capitalization on the National Stock Exchange. These are the largest publicly traded companies in India. The fund manager targets to outperform the benchmark while undertaking risk that is lower than the benchmark. The salient features of the investment strategy are as follows:-

• The scheme invests 80 - 100% of its assets in large cap stocks. As per SEBI’s definition, top 100 stocks by market capitalization are classified as large cap stocks.


• The fund managers aim for a relatively liquid portfolio.


• The fund managers target volatility below the scheme benchmark i.e. Nifty 50 TRI.


• Stock picking by the fund manager is purely bottom up. The fund manager focuses on fundamentals, when selecting stocks for the scheme portfolio.


• The fund selects stocks based on their ability to grow earnings on a sustainable basis from a medium term perspective.

Lower downside risk

The table below lists the 5 biggest market drawdowns in the last 10 years or so. You can see that fund managers were successful in lowering downside relatively to the benchmark index; Axis Bluechip Fund suffered smaller drawdowns compared to Nifty 50 TRI on most occassions.

Source: Advisorkhoj Research

Track record of alpha creation

The chart below shows the 3 year rolling returns of Axis Bluechip Fund versus Nifty 50 TRI since the scheme’s inception. Regular readers know that, we show 3 year rolling returns because equity investors need to have minimum 3 year investment horizon. You can see that the fund managers were consistently able to beat the benchmark across different market conditions over 3 year investment tenures. Consistency is one of the most important attributes of a mutual fund scheme’s performance. Axis Bluechip Fund has a consistent long term track record of alpha creation.

Source: Advisorkhoj Research

SIP Returns

The chart below shows the growth of Rs 10,000 monthly SIP investment in Axis Bluechip Fund over the last 10 years (ending 19^th January 2022). With a cumulative investment of Rs 12 lakhs, you could have accumulated a corpus of over Rs 28 lakhs by investing through SIP in this scheme. The SIP performance of the scheme (return of over 16% annualized), again demonstrates the wealth creation track record of Axis Bluechip Fund.

Source: Advisorkhoj Research

Why invest in Axis Bluechip Fund?

• Blue chip funds invest primarily in large companies


• Such companies are traded frequently and hence liquid and also less volatile as these stocks have proven track record, business models and capable enough to deliver long term consistent returns.


• The Axis Bluechip Fund aims to outperform the benchmark with risk lower than the benchmark and has demonstrated performance track record.


• Equity as an asset class holds potential to beat inflation and generate long term wealth.


• Axis Bluechip Fund may be suitable for long-term goals such as children's education & their future, retirement or any other long term growth that needs wealth creation plan.

Who should invest in Axis Bluechip Fund?

• Investors looking for capital appreciation over long investment tenures.


• Investors with minimum 5 years investment tenures.


• Investors with moderately high to high risk appetites.


• Since the scheme invests in blue chip stocks and aims for lower volatility relative to the market, it may be suitable for first time or new investors

Investors should consult with financial advisors if Axis Bluechip Fund is suitable for their investment needs.