How Has Axis Mutual Fund Performed As an AMC in the Last 10 Years?

Axis Mutual Fund Ltd, formerly Axis Asset Management Company Ltd., is a prominent player in the mutual fund sector. Established in October 2009, Axis Bank holds a 74.99% stake in this company, while Schroder Singapore Holdings Private Limited has a 24% stake.

With a presence worldwide, including Asia, Europe, the Middle East, and America, Axis Mutual Fund boasts a diverse portfolio of over 63 schemes. As of March 2024, it had amassed Assets Under Management totalling Rs. 2.6 lakh crores.

Well, this is about the company, but what about the returns over the past ten years? Let’s understand this by reviewing some of the scheme returns offered by Axis Mutual Funds.

Understanding  Axis Mutual Fund AMC Returns

Let’s get deeper into the schemes offered by this AMC.

1. Axis Blue Chip Fund

This fund mainly consists of equity and equity-related securities of large-cap companies, including derivatives. As of March 31, 2024, this scheme has an Asset Under Management (AUM) of Rs 33,523.02 crores. Blue Chip Fund’s Compound Annual Growth Rate (CAGR) is 12.68%.

The top companies in this scheme portfolio include

• ICICI Bank Limited
• Bajaj Finance Limited
• HDFC Bank Limited
• Larsen & Toubro Limited
• Avenue Supermarts Limited

2. Axis Focused 25 Fund

As the name suggests, this scheme invests in a maximum of 25 carefully selected stocks. The fund’s portfolio consists of large-cap, mid-cap, and small-cap companies.

Currently, the fund has a significant investment in domestic equities, with 61.25% in large-cap stocks and 16.24% in mid-cap stocks. Additionally, the fund holds a minor portion in debt, with 0.32% invested in government securities.

The 10-year return of the Axis Focused 25 Fund is 288.84%, which translates to an annualized return of 14.53%.

3. Axis Nifty 100 Index Fund

Although launched on October 18, 2019, the returns of this scheme impact Axis MF AMC’s performance. This scheme aims to replicate the performance of the Nifty 100 Index, subject to tracking errors.

The fund’s portfolio is heavily weighted towards equity, with 99.47% of investments in domestic equities. Of this, 74.54% are large-cap, 8.51% are mid-cap, and 0.55% are small-cap stocks. The fund has delivered an impressive CAGR of 16.99%.

4. Axis Liquid Fund Direct-Growth

This open-ended liquid scheme has an AUM of Rs 22,169.19 crores as of March 31, 2024. Its CAGR is 6.85%. The fund’s portfolio yield, or Yield to Maturity (YTM), was 7.52%. Regarding the 10-year return, the fund has delivered absolute returns of 88.41%. The scheme portfolio comprises the following:

• 91 Days Tbill
• Canara Bank
• 182 Days Tbill
• ICICI Securities Limited

5. Axis Short-Term Direct Fund

This plan invests in a diversified portfolio of high-quality debt and money market instruments. It is suitable for investors with an investment horizon of one to three years or as part of the fixed-income allocation in a longer-term portfolio.

Over the past decade, the Axis Short-Term Direct Fund has delivered a trailing return of 8.11%. That means the fund has doubled the money invested in it every ten years. As of March 31st, 2024, the fund’s asset size is Rs 8,278 crores.

Overall, Axis mutual funds have given an average annualized return of 7% to 15% in the last 10 years. 

Conclusion

In a constantly evolving market, Axis Mutual Fund has stayed ahead of the curve through innovation and the experience of its fund managers. The introduction of new fund offerings and the adaptation of existing schemes to align with market trends have helped the company outperform not all mutual fund companies but many.