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Axis Long Term Equity Fund

Have you invested in a Mutual Fund? If yes, you are already aware of the numerous benefits of investing in a mutual fund. If no, it is about time to make the most of this excellent investment option. Mutual funds are easy to understand tools which can help you maximize your capital over a period of time. The highest lock-in period of mutual funds is way less than what you get with other investment modes.

It is easy to get in and out of a mutual fund as well. You can invest whenever you wish or set up regular installments, where a predefined amount will be deducted from your account. There are various types of mutual funds which are designed to help you achieve different financial goals. If you are looking from a mid-term or long-term time frame, ELSS can be a great way to invest. Axis Long Term Equity fund is an ELSS fund.

This fund from Axis Mutual Fund has multiples benefits. Of course, it will help your capital appreciate over time. Apart from that, you can also use these investments for tax saving purposes. All the investment made under Axis Long Term Equity fund will provide you with tax benefits under Section 80C. The fund is diverse in nature which helps reduce the risk associated, without giving away much on the returns part.

Features of Axis Long Term Equity Fund

Here are some of the most prominent features and benefits of investing in Axis Long Term Equity fund.

  • The fund is diverse, meaning it contains a good mix of large-cap and mid-cap stocks. The mid-cap stocks provide the much-needed boost in returns, whereas the large-cap stocks bring a lot of stability and regular returns to the table.
  • The fund has a lock-in period of 3 years. It means, you cannot redeem any units before the completion of three years from the date of investment.
  • Your capital is invested in the market for at least three years. This ensures that you easily ride out any ups and downs in the capital market.
  • The fund being an ELSS, you can build wealth while also receiving tax benefits.
  • Axis Long Term Equity fund focuses majorly on equity as an asset class. This ensures one of the highest returns when it comes to various investment instruments.
  • Its mid-term to long-term horizon is ideal for children’s education, retirement planning, buying of a house or car and so on.
  • The fund came into existence on the 29th of December 2009. Ever since, it has shown strong performance when it comes to returns.
  • Entry load is a charge that asset management companies or AMC would charge their subscribers for buying a mutual fund. Since 2009, regulations by SEBI ensured that investors never have to pay Entry load on mutual funds.
  • Similarly, if you wish to withdraw from a fund or redeem its units, you will end up paying exit load. But it largely depends on the duration where you wish to redeem the units. For Axis Long Term Equity fund, the lock-in period is for three years. You will not be able to redeem any units before that. On the completion of three years, you can easily withdraw the funds. Thus, the exit load is Nil in this case.
  • The fund is managed by Mr. Jignesh Gopani. He has been with the fund since 2011. Mr. Gopani worked for Emkay shares & stock brokers limited, Voyager India Capital private limited, Net worth Stock broking limited and Birla Sun Life AMC. The 36-year-old fund manager brings in a lot of diverse experience to the table.

Investment Objective of Axis Long Term Equity Fund

Axis Long Term Equity fund has quite a few objectives up its sleeves. Being a mutual fund at the core, its primary objective is to offer capital appreciation for its investors or subscribers. Apart from that, it can also act as a source of income, should you opt for the dividend option. The fund uses a diverse investment mode to invest in equity and equity based investment instruments.

The fund manager looks for companies with strong, robust and sustainable growth plans. The fund is flexible and invests in companies from different market capitalizations. A good mix of all the three market caps ensures growth and stability. As is the case with any other mutual fund, irrespective of all the precautions, no one can assure that the fund objectives will be met.

If you wish to invest in Axis Long Term Equity fund, the following are the options and plans that you can choose from.

Growth Plan

The growth option is one of the most commonly opted ones when it comes to mutual funds. As and when there are any gains from a mutual fund, the same is reinvested into the fund. This allows your capital to view and benefit from the power of compounding. You do not receive any returns unless you redeem units. There are no intermediate dividends or bonuses.

Direct Plan

A direct option is a mutual fund that you can directly buy from Axis Mutual Fund AMC. When you opt to buy from distributors, advisors or brokers, you end up paying slightly higher charges in the form of expense ratio. The expense ratio in a direct plan is relatively lower, making way for better or higher returns.

Dividend Plan

You can opt for dividend option if you wish to receive funds at regular intervals. If your fund makes enough gains, it is at the discretion of the fund manager to pass on the benefits to you in the form of dividends. It must be noted that there aren’t any hard and fast rules for paying dividends.

Type of Fund

Axis Long Term Equity fund is an open ended mutual fund. This means that there aren’t a limited number of units and that one can buy as many units as they wish. It also comes under the category of ELSS or Equity Linked Saving Scheme. One could argue that there are several other modes of investment as well such as Fixed Deposit, PPF and NSC. They provide tax benefits as well. However, the returns from these investments are taxable, which is not the case with ELSS.

The returns that you can get with your Axis Long Term Equity fund are relatively higher and taxable partially. For all investments made prior to 31st of January 2018, the gains or proceeds are non-taxable. However, for investments post that, if the gains exceed INR 1,00,000 you will end up paying taxes of 10% on the additional amount.

Risk Factors

A mutual fund, in general, is subject to market risks. The risk factor is further accentuated, if the fund belongs to the equity category. Any changes in the capital market directly impact the fund’s NAVs and in turn your portfolio. If as an investor, you are willing to take a moderately high risk, Axis Long Term Fund might be the one to look for.

Factors such as the trading volume of individual stocks, liquidity risk, settlement risk and the risk of losing your capital are some of the major risks that one might have to deal with. If the fund invests in any securities that are not listed on the stock exchanges, there are fundamental risks associated with it. The non-availability of a lot of buyers and sellers can hamper your holdings. In the event that a considerable number of investors wish to redeem their units, it might create some risks. Should there be enough cash at hands, the fund manager can handle the situations or in the extreme cases, they will have to sell some of the assets to make way for redemption. In such cases, the fund manager must rebalance the units accordingly.

Top 10 holdings

A lot of investors take a keen interest in knowing the holdings of a mutual fund. For the ones who take a closer look at the capital market, being aware of these holdings can make decision making process that much easier. Here are the top 10 holdings of Axis Long Term Equity Fund.

HoldingPercentage Allocation
Tata Consultancy Service Limited9.92
HDFC Bank Limited9.26
Kotak Mahindra Bank Limited6.91
Pidilite Industries Limited5.96
Housing Development Finance Corporation Limited5.23
Bajaj Finance Limited4.99
Gruh Finance Limited4.52
Maruti Suzuki India Limited4.38
Sun Pharmaceutical Industries Limited4.02
Bandhan Bank Limited3.83

Here are the top 5 sectors in which the fund invests heavily along with its distribution pattern.

SectorPercentage Allocation
Banking20.0
Finance18.74
IT Software12.48
Automobile7.22
Auto Ancillaries7.22

Performance Details of Axis Long Term Equity Fund

Past performance of a Mutual Fund is a great way to get insights into how the fund has behaved over time. Some people might even use this data to zero down on the fund. However, it must be noted that past performance does not necessarily guarantee future returns. While one can use these as reference points, this should not be your sole criteria.

Asset Under Management INR 16,998.90 CR

1 Year Returns3 Year Returns5 Year Returns
Regular Fund8.04%10.95%23.23%
S & P BSE 2009.54%12.85%16.76%
DateNAV Per Unit (Cumulative)NAV Per Unit (Ex Dividend)
March 201823.0520.55
January 201721.1718.94
January 201621.2218.97
January 201524.2922.29

How to apply

Once you are convinced that Axis Long Term Equity fund is for you, investing in the fund is the next logical step. One of the core strengths of a mutual fund is the level of convenience that it brings on to the table and it is no different when it comes to applying as well. You can either opt for the online mode or the offline mode.

Online

Depending on whether you wish to buy a direct fund or a regular fund, you can choose the platform. For a direct fund, you will have to buy the fund from Axis Mutual Fund’s website. For a regular fund, you can visit any broker or distributor or advisor’s website and proceed with the same. The first step for buying any mutual fund is to get your KYC done.

If you have already registered for KYC, you can directly search for the fund and invest the amount you wish to. While buying, you can proceed with a lumpsum deposit or set up an SIP or systematic investment plan. And if you haven’t registered KYC, you would need to fill up a form and provide supporting documents for the same. The process remains the same once your KYC is approved.

Offline

Investors who aren’t big fans of online transactions can still choose to invest offline. You would need to get in touch with a representative from Axis Mutual fund or walk into a local branch. A new investor would need to get their KYC registered. For which, one would have to fill up a form and provide supporting documents. Along with the documents, you would need to write a cheque for the investment. You can also set up for an SIP during this time.

FAQs on Axis Long Term Equity Fund

How do I buy Axis Long Term Equity Fund plan online?

To buy the mutual fund online, you can either visit Axis Mutual Funds website directly or visit a broker/distributor/advisor. The first step towards mutual fund investment is getting your KYC done. Once you are KYC registered, you can start investing in the mutual fund.

How do I contact Axis Long Term Equity Fund Company?

You can call Axis Mutual Fund at 1800 221 322 / 1800 3000 3300. You can also send in your queries directly to customerservice@axismf.com. Alternatively, you can walk into a local branch and get your queries resolved.

Can I redeem ELSS before 3 years?

No. The lock-in period for an ELSS is 3 years. Thus, you cannot redeem any units prior to the completion of three years.

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