Axis Bluechip Fund Review: Does High Risk always mean High Rewards?
Created on 18 Apr 2023
Wraps up in 6 Min
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Investing in mutual funds has become a popular way for individuals to grow their wealth over time. Bluechip funds, like MS Dhoni of Cricket, are considered supreme in the mutual fund universe. They are known for their consistent performance, stability, and reliability, making them a trusted choice for investors seeking long-term wealth creation. One such bluechip fund that has been proving its mettle for a while now is the Axis Bluechip Fund.
Investing in a bluechip fund requires careful consideration of various factors, including its historical performance, the key differences between regular growth and direct growth options and Net Asset Value (NAV). So, let's discuss all these aspects of the buzzworthy Axis Bluechip Mutual Fund.
Axis Bluechip Growth Fund: Regular Plan vs Direct Plan
Let's understand how Axis Bluechip Fund works. It is a mutual fund scheme that invests in big-shot companies with a good track record, aka blue chip companies, aiming to make money over a long period of time. It's managed by a wise fund manager who picks and chooses the best stocks. After which, you can invest in the fund for the long term.
Axis Bluechip Fund is one of the many schemes that belong to Axis Mutual Fund House. It is an open-ended large-cap equity scheme. Wondering, what's that? I’ll break it down for you step by step.
First, open-ended funds are funds where the investors can buy or sell units whenever they want with no fixed time period or restrictions, even after the NFO (New Fund Offer).
Whereas close-ended funds come with a fixed maturity and can only be bought during the NFO. Next, it invests in large-cap companies that are safe and reliable and have a market capitalisation of more than ₹20,000 crores.
Axis Bluechip Fund is 96.06% invested in Indian stocks, mostly in large-cap stocks (85.17%) and the rest in mid-cap stocks (1.26%). These funds invest in well-known companies such as Infosys Ltd., Bajaj Finance Ltd., HDFC Bank Ltd., TCS Ltd., Kotak Mahindra Bank Ltd., ICICI Bank Ltd., and other prominent names in the corporate world.
There are 2 groups under which Axis Bluechip Fund is available:
- Axis Bluechip Fund-Regular Growth
- Axis Bluechip Fund-Direct Growth
Axis Bluechip Regular Growth Plan
Regular growth is a plan that allows investors to invest in the fund through intermediaries such as authorisd distributors or financial advisors. The distributor receives a commission from the Asset Management Company for selling the fund to investors. Additionally, investors are also levied various charges, like exit load is charged when investors exit a mutual fund. Similarly, an entry load is charged when an investor invests for the first time in a mutual fund. Likewise, a transaction charge is a one-time charge that is imposed on investors. Uff…so many charges, right? Why spend so much when you can do all this on your own, right?
Axis Bluechip Direct Growth Plan
So let's choose the DIY option, i.e. Direct-Growth plan. You don't need any 3rd party apps, agents, or intermediaries to invest in Axis Bluechip Fund. You can directly open up the official app, make an account, research the fund you are about to enter( by the way, Axis Bluechip is 😚❤) and finally invest.
Investing in a DIY Direct-Growth plan comes with a host of advantages that make it an exciting option for investors. Firstly, the research you do to choose the right mutual fund can boost your knowledge about different investment instruments like stocks, bonds, etc., making you a financial whiz! Secondly, you have complete control over your investments, allowing you to tailor your strategy, asset allocation, and investment horizon based on your unique financial goals and risk tolerance. The cherry on top (or should I say the dessert 😋), is the potential for better returns compared to regular plans, giving you the opportunity to witness your investments soar to new heights. So, gear up, embrace the DIY spirit, and potentially reap the rewards of direct plans with a side of financial empowerment!
Axis Bluechip Fund NAV
Tensed about keeping tabs on how your investment portfolio is performing? Fret not, the NAV (Net Asset Value) is here to save the day!
Let's take a quick dive into the history of Axis Bluechip Fund NAV and get to know some interesting facts about this popular mutual fund. Axis Bluechip Fund took its first step into the investment world in January 2010. Currently, this fund is managed by Mr Shreyansh Devalkar and Mr Vinayak Jayanath.
The NAV of Axis Bluechip Fund's Direct Growth Plan has had its fair share of highs and lows. The fund reached its peak NAV of ₹54.30 in October 2021, reflecting the stellar performance under Shreyansh's expertise. We say that the fund scaled new heights because its NAV at the beginning stage, i.e. on 2nd January 2013, was ₹12.28. Presently, the NAV value of this fund is ₹47.54 (as of 18th April 2023). The impressive NAV history of Axis Bluechip Fund reflects its growth and performance, thereby underlining its success in generating returns for its investors.
Axis Bluechip Fund Performance History
Axis Bluechip Fund’s Regular Growth Plan has witnessed significant growth in its NAV over the years. The plan reached its peak NAV of ₹48.67 on October 19th, 2019, marking a substantial increase from its initial NAV of ₹10 on January 5th, 2013. Despite fluctuations in the market, the current NAV of Axis Bluechip Fund's Regular Growth Plan stands at ₹42.17 (as of 18th April 2023), showcasing its consistent performance and potential for better returns in investments.
Well, these projections may be kaabil-e-taarif but the Regular Growth Plan is far from beating Direct Growth Plan as of now.
Axis Bluechip Fund SIP
Investing in mutual funds might be a wonderful method to increase capital over time. But let’s face it, not every one of us has so much money lying around to invest in mutual funds. From managing daily expenses to maintaining a tight budget, there are many obstacles to handle. Above that, the bubble of uncertainties in the markets often ends up bursting on our heads.
So, what to do for a good return? This is where Systematic Investment Plans(SIPs) come to the rescue! SIPs are a fafntastic way of investing a regular albeit small amount every month. Each SIP payment is like a drop in the ocean of wealth, gradually building a financially stable future.
SIPs instil discipline by promoting regular savings and systematic investments. Hence, you build a habit of consistently setting aside a small amount to make your future brighter and your bank balance wealthier.
To maximise the benefits of SIPs, you can use a SIP calculator, which will help you in estimating potential returns and plan investments beforehand. All the factors mentioned above make SIPs a smart and strategic investment option.
The Bottom Line
Thus, we can conclude that investing in mutual funds, especially Axis Bluechip Fund, can be a wise choice for long-term wealth creation. Axis Bluechip Fund invests in reliable and established companies, making it a trusted option for investors. Investors can choose between Regular Growth and Direct Growth options when investing in Axis Bluechip Fund. Regular Growth involves intermediaries and charges, while Direct-Growth offers investors better control and the potential for better returns.
Despite fluctuations in the market, Axis Bluechip Fund has consistently performed well, with its NAV reaching new heights. With its historical performance, stability, and reliability, Axis Bluechip Fund can be a promising addition to an investor's portfolio.
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