Axis Mutual Fund AMC SIP requires an investor to provide some key details in order to initiate the systematic plan. For starters, there is the matter of the choice of fund. Investment advisors suggest that investors should ideally consider equity and equity oriented hybrid funds for SIP investments instead of debt funds. This is mainly because of the fact that equity funds and equity oriented hybrid schemes are more prone to volatility as compared to debt funds. After that, there is the question of how much the investor can invest without sacrificing too much liquidity and without completely disrupting the monthly/annual household budget. The last question is the part about the duration of the SIP i.e. how many instalments does an investor wish to make into the Axis Mutual Fund of their choice via the systematic plan. Once these details have been provided, the chosen amount gets deducted automatically on a set date and units of the chosen fund are allocated as per the applicable NAV i.e. prevailing NAV of fund units on the day the SIP transaction was processed.
Axis Mutual Fund AMC is one of India’s leading asset management companies or fund houses. This leading fund house offers multiple mutual fund investment options to individual investors seeking to grow their wealth across the key categories of equity, debt fund and hybrid funds. Among the different investment styles on offer, one of the most popular ones is the Axis SIP or Axis Systematic Investment Plan, which can be availed by retail investors through both online as well as offline routes. Moreover, an Axis SIP can be availed by investors no matter how little or how much they want to invest over a period of their choice. The following sections will provide further details regarding Axis SIP investments and also discuss some of the top Axis mutual funds that are ideal for SIP investments.
Benefits of Investing in an Axis Mutual Fund Scheme through SIP
By choosing to invest in an Axis mutual fund scheme through the SIP route, the investor can be assured that their investment would be directed into scheme potentially capable of delivering adequate returns. Additionally, the investor also stands to gain from the various benefits of implementing a systematic investment approach for the future and thereby generating further wealth.
Disciplined Investments: The average observer might have notice a discrepancy with regards to earning and saving – many individuals earn high salaries or generate a high annual/monthly income yet a much fewer number of people actually accumulate wealth in the long term. A key reason for this discrepancy is the lack of investment discipline on the part of the average investor. By subscribing to an SIP, the investor starts making automatic investments in the Axis Mutual Fund of their choice. This promotes a disciplined approach to investments which ensures the creation of wealth by the investor in the long term.
Rupee Cost Averaging: The basis of making a profit is simple - buy cheap and sell high. This holds true for mutual fund investments as much as a merchant trade. The idea is after all to book a profit from your mutual fund investments (capital appreciation) and this would be possible by buying at low rates and selling at high rates. However, the strategy of waiting for a low price to invest in the market is termed as “timing the market” and it is in fact near impossible to get right especially for a novice investor. Axis SIP provides investors with the benefit of rupee cost averaging, which completely eliminates the need for investors to time markets and improves the chances of receipt of adequate returns for even the most amateur of investors.
Flexible Investment Tenure: For investors on the fence regarding Axis SIP due to worries regarding investment tenure, there is definitely good news. Axis SIP offers flexible investment tenures starting from periods as short as 6 months. Apart from the fact that there is no maximum limit on the duration during which investors can keep their SIP active, they are also allowed to modify their SIP duration and amount after the completion of the initial minimum SIP tenure period. This flexibility offers investors with the unique opportunity to change their investment strategy according to changes in overall market conditions.
Flexible Investment Amount: Axis mutual fund SIP can be availed by investors both new and veteran from every walk of life due to its flexible investment amount options. In case of some Axis mutual fund SIP, the individual investment amount is as low as Rs. 500, while others may have a higher individual SIP investment requirement (usually Rs. 1000) and choose the best sip plans for better returns. Additionally, there is no legal maximum limit on the number of simultaneous Axis SIP you are invested in or the total SIP amount you invest per month. This extent of flexibility is quite unique and not usually available in case of most other investment options.
Benefits of Long Term Investments: A key ingredient in the recipe to become wealthy is staying invested in the long term. SIP investments can help you achieve this and by staying invested for longer periods you can look forward to gaining the benefits of compounding. The power of compounding is referred by some as the eighth wonder of the world that can help investors achieve their long term investment targets faster by ensuring that the interest income earned during the early investment period earns additional interest during the future years and gets the investor closer to his/her investment target faster.
Best Performing Axis SIP Mutual Funds
Axis Mutual Fund AMC offers scores of open-ended mutual funds across diverse categories of equity, debt and hybrid. In the following section a few leading schemes from Axis MF AMC that have historically performed strongly in various market conditions and are potentially ideal for investments made through Systematic Investment Plans will be discussed.
Axis Focused 25 Fund: This is an open ended equity scheme that features the stated objective of investing in equities as well as equity derivatives of no more than 25 companies listed on the domestic exchange. The fund would choose its 25 companies from the list of the top 200 companies on the Indian domestic stock exchanges based upon the market cap of the companies. Though it proposes to be a multi cap fund, the Axis Focused 25 Fund is majorly invested in large cap companies with a much smaller allocation towards mid cap companies. As a result of this large cap orientation, the fund has managed to contain losses much better than many of its peers during bearish market conditions. Additionally, the mid cap allocation of the fund has played a key part in ensuring that the fund has witnessed significant growth and provided relatively high ROI to investors during bullish market conditions.
Axis Equity Fund: Axis Mutual Fund AMC manages the Axis Equity Fund, an open ended equity mutual fund that provides investors with an opportunity to earn potentially high returns through the fund’s equity investments. The scheme is aimed at providing long term capital appreciation to investors through investments made into a diversified portfolio featuring mainly equity investments. As per the stated objective, the investments of the fund are mainly directed towards equity and equity derivative investments mainly made into large cap companies. Apart from its large cap investments, the mutual fund also features a relatively smaller allocation made into mid-cap equities that can offer potentially high returns during market bull runs. The large cap orientation of this equity fund on the hand has helped it contain losses and volatility of the overall portfolio during periods of market uncertainties.
Axis Long Term Equity Fund: The Axis Long Term Equity Fund is the premier tax saver mutual fund offering from Axis Mutual Fund AMC. This Axis ELSS is offered to retail investors with the aim of providing capital appreciation in the long term along with tax saving benefits under Section 80C through investments made mainly into equities as well as equity derivatives. The fund’s investments would be mostly targeted at companies with the potential of a sustainable business model as well as high overall growth potential. This is one of the most highly rated funds in the ELSS category and with an AUM in excess of Rs.14,000 crores, it is by far the most popular tax saving mutual fund currently available in India. Since its launch, it has provided high returns to its investors during bullish markets and contained losses quite well during bearish market conditions.
Axis Midcap Fund: This equity mutual fund managed by Axis Mutual Fund AMC is designed to provide investors with high risk appetite a lucrative investment avenue in potentially high growth mid cap companies operating in India. The fund would focus mainly on making equity and equity derivative investments which would mainly target larger companies in the mid cap segment. Though the fund is mainly invested in mid cap companies, a portion of the fund’s assets (historically around 30%) are also invested in large cap companies. This large cap allocation has played a key role in helping the fund contain losses especially during periods of extreme market volatility and sustained bear runs. This fund also features a diversified portfolio that further improves the chances for investors to receive superior returns through greater portfolio diversification.
Axis Equity Saver Fund: Axis Equity Saver Fund is the top rated hybrid mutual fund offered to investors seeking a balanced portfolio of investments. Axis Equity Saver Fund is an equity-oriented hybrid fund that aims to provide suitable levels of capital appreciation and income to investors. In order to achieve its stated objectives, this Axis mutual fund would make investments in pure equities and equity-derivatives; utilise arbitrage opportunities; as well as make investments in various money market and debt instruments. Historically, the fund’s equity allocations have featured a sector agnostic investment style with a large cap bias while a much smaller allocation was made towards mid cap equities. This hybrid mutual fund’s debt allocations, on the other hand, consist mainly of high quality bonds mainly Government-backed securities and AAA rated bonds of varying tenures. The long term consistent performance of this fund makes it an ideal choice for investors seeking an Axis SIP investment for the long term capital appreciation.
Axis Income Saver Fund
Axis Income Saver Fund is a debt oriented hybrid fund managed by Axis Mutual Fund AMC - one of India’s best performing fund houses. The stated objective of this hybrid fund is to generate consistent income for investors through investments that are made into various money market and debt instruments. Due to the hybrid nature of the fund, the Axis Income Saver Fund does have significant equity investments with a large cap bias in companies spread across diverse sectors including but not limited to financial, automobile, services, construction, engineering and healthcare. The majority capital allocation of the fund towards debt securities comprises high quality debentures and bonds rated AAA. The fund does have a few comparatively low rated bonds of rating A and AA, which provide accrual benefits of higher interest rate to the fund.
Table1. Table showing comparison of the above Axis SIP options across key criteria:
For purposes of this Axis SIP illustration, each individual SIP amount has been fixed at Rs. 2000 per month equal to Rs. 24,000 annually and start date of the Axis SIP for all the Axis Mutual Fund investments in this illustration is October 1, 2016, while end date of the SIP in case of all selected funds is September, 2017. The SIP value is obtained using historical NAV data of each fund’s regular plan as recorded on 27th October, 2017. However, this prior data does not ensure a fund’s future performance.*
|Fund Name||1 Year Returns||3 Year Returns||5 Year Returns||Total SIP Investment (Principal)||SIP Maturity Value|
|Axis Focused 25 Fund||23.59%||16.89%||17.99%||Rs.24,000||Rs.28178|
|Axis Equity Fund||20.81%||10.67%||16.42%||Rs.24,000||Rs.27904|
|Axis Long Term Equity Fund||17.93%||14.69%||22.81%||Rs.24,000||Rs.27589|
|Axis Midcap Fund||17.90%||12.84%||21.14%||Rs.24,000||Rs.27684|
|Axis Equity Saver Fund||10.29%||N/A||N/A||Rs.24,000||Rs.25543|
|Axis Income Saver Fund||9.12%||9.73%||N/A||Rs.24,000||Rs.25444|
*The above data is provided as an illustration only and may/may not correspond to a real-life situation. The returns data used as per data recorded on the 27th of October and is subject to change.