Axis growth opportunities fund has been one of the best-performing large- and mid-cap funds in the last 1 year. The scheme was launched nearly 5 years back, and its performance since inception is stellar. If you invested Rs 1 lakh in the scheme at its inception / NFO in October 2018, your investment would have multiplied more than 2X (CAGR of 18.8%). A unique feature of Axis Growth Opportunities Fund is that the scheme allocates a portion of its portfolio to international stocks (up to 30%). With equity markets making a broad-based recovery after the first couple of months of volatility this year, Axis Growth Opportunities Fund can be a good investment option for long-term investors who want downside risk limitations in highly volatile markets.
As per SEBI requirements, large and midcap funds must have a minimum 35% allocation to large cap (top 100 stocks by market capitalisation) and 35% allocation to midcap stocks (101st to 250th stocks by market capitalisation). While the minimum large-cap allocation potentially ensures stability in volatile market conditions, the mandate for these funds provides enough flexibility for fund managers to position their portfolios for long-term capital appreciation by identifying attractive investment opportunities across different market cap segments and industry sectors. Large- and mid-cap funds are good investment choices for investors with high to very high-risk appetites for long-term financial goals.
Axis Growth Opportunities Fund was launched in October 2018 and has Rs 8,977 crores of assets under management (as of stMay 2023). The expense ratio of the scheme is 1.75%. Veteran fund managers Mr Jinesh Gopani and Mr Vinayak Jayanath helm the scheme. The chart below shows the growth of Rs 1 lakh investment in the scheme over the last 1 year versus its benchmark index Nifty Large and Midcap 250 TRI.
Source: Advisorkhoj Research
The chart below shows the performance of Axis Growth Opportunities Fund versus its fund category and various asset classes over different time scales. The scheme has outperformed the benchmark and category average across all time scales. It has also outperformed the other asset classes over more extended investment periods.
Source: Advisorkhoj Research
The chart below shows the 3-year rolling returns of Axis Growth Opportunities Fund versus the large and midcap category average since the scheme’s inception. You can see that the scheme consistently beat the category average over 3-year investment tenures. The average 3-year rolling returns (CAGR) of Axis Growth Opportunities Fund is 22.35%. The scheme gave 15%+ CAGR returns over 3-year investment tenures nearly 100% of the time (see the rolling returns chart below).
Source: Advisorkhoj Rolling Returns Calculator
The chart below shows the Rs 10,000 monthly SIP returns in Axis Growth Opportunities Fund since the scheme’s inception. You can see that with a cumulative investment of Rs 5.6 lakhs through SIP, you could have accumulated a corpus of over Rs 8.8 lakhs in the last 5 years. The XIRR of monthly SIP in Axis Growth Opportunities Fund since inception is nearly 20%. The SIP performance of Axis Growth Opportunities Fund is a testimony of the wealth creation potential of the scheme over long investment horizons.
Source: Advisorkhoj Research
There is a low or even negative correlation between the returns of the different countries. The chart below shows the annual returns of MSCI World and MSCI India (in dollar terms) Indices over the last 13 years (ending 31st May 2023). You can see that MSCI India outperformed MSCI World in specific years and underperformed in specific years. In the years India underperformed, having international stocks in your portfolio would have reduced overall portfolio volatility and provided stability.
Source: MSCI Indices, Advisorkhoj Research, as on 31st May 2023.
Mutual Fund Investments are subject to market risk, read all scheme related documents carefully.
Aug 29, 2019
Aug 26, 2019
Aug 24, 2019
Aug 19, 2019
Aug 18, 2019
Aug 16, 2019
Aug 4, 2019
Nov 4, 2024 by Advisorkhoj Team
Nov 4, 2024 by Advisorkhoj Team
Nov 4, 2024 by Advisorkhoj Team
Nov 4, 2024 by Advisorkhoj Team
Oct 29, 2024 by Advisorkhoj Team