Axis Mutual Fund Multicap Fund: A Deep Dive into its Performance and Strategy

A multi cap fund offers diversified investment benefits to investors. With investment across companies with diversified market capitalization, a multi-cap fund offers stability, growth potential, and protection from market changes and volatility. Axis Mutual Fund and its Multicap Fund offer long-term growth potential and risk protection. Being an open-ended mutual fund scheme started in December 2021, the multi-cap mutual fund scheme offers exposure across large, mid, and even small cap companies.
Let’s dive into further details related to Axis Multicap Fund providing information about its investment strategy and performance so far:
Financial performance:
With more than ₹6800 crores of assets under management and NAV of ₹17.63, the Axis Multicap Fund has grown multi-fold since its inception. According to the current performance trends, the fund has a year-to-date return of 33.81%. The annualized returns from investment into the fund stand at 22.84% which in comparison to Nifty 500 multi cap and other funds of similar category is quite high. With an investment of ₹10,000 into the fund, investors can generate an annualized profit of ₹8,360 making it an ideal choice for investors looking for long-term wealth generation.
Investment strategy:
The Axis Multicap Fund is best known for its efficient bottom-up stock analysis and selection criteria. With a complete focus on stocks that can generate exponential returns over a long period, the multi cap fund manager looks for stocks that are fundamentally strong and sound. The investment strategy is simple with a complete focus on attaining capital appreciation from every single stock included within the mutual fund scheme. Moreover, with a fixed allocation rule of at least 25% across large, mid, and small stocks, the fund even offers flexibility for strategic investments across other potentially strong companies. The fund managers have allocated around 92% of the total investments into equity and the remaining in-depth instruments or cash reserves for stability and protection. An investment into different asset classes and companies with varied market capitalization offers an edge over market fluctuations and delivers strong growth potential as well.
Risks:
Apart from the general risk of investment in stock market securities like equity, the Axis Multicap Fund is subject to market volatility. Moreover, the fund has been categorized under the high-risk category due to investment exposure across mid and small-cap securities. However, with professional management and allocation of a sufficient portion of funds into debt instruments and cash reserves, investors receive a certain amount of cushioning against serious market downturns.
Suitability:
Investors with a long-term investment horizon must consider investment in the Axis Multicap Fund. With an investment period of more than 5 years, the fund can help deliver sufficient returns to its investors. Moreover, the fund is suitable for moderate to high-risk appetite investors due to investments across mid and small cap stocks.
Conclusion
With a track record of strong performance and robust returns, the fund can serve as a great investment choice for investors looking for ways to diversify their investments and attain growth through SIPs over a long period. Multicap Fund from Axis Mutual Fund is best known for its diversified investment portfolio. With investment in large, mid, and small cap funds investors can take the benefit of long-term wealth creation.