Axis Small Cap Fund: Performance Review, Portfolio Analysis and Investment Strategies

 Investing in a small cap mutual fund is a great way to diversify your portfolio. However, it is highly risky. So make sure you do not allocate a major chunk of your money. One of the best small cap mutual funds is Axis small cap fund. In this article, we are going to learn about Axis Small Cap Fund: Performance Review, Portfolio Analysis and Investment Strategies and things to consider before investing in it.

About Axis Small Cap Fund

  • Axis Small Cap Fund is a small-cap mutual fund offered by Axis Mutual Fund.
  • The fund aims to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related instruments of small-cap companies.
  • Small-cap companies are usually in the early stages of their growth cycle and have the potential for high growth but also come with high uncertainty.
  • The fund managers are Shreyash Devalkar, Vinayak Jayanath, and Anupam Tiwari.
  • The performance of the fund on the Outperformance Consistency metric has been satisfactory.
  • You can use a mutual fund return calculator to calculate the estimated returns.
  • The fund has invested majorly in equity, which is 83.7% and the rest 16% in debt.

 

Portfolio Analysis

Sector allocation:

  • Basic materials : 18.3%
  • Industrials: 18%
  • Financial Services: 11.1%
  • Healthcare: 10.3%
  • Consumer Cyclical: 8.8%
  • Technology: 8.7%
  • Consumer Defensive: 4.6%
  • Real Estate: 3.9%

 

The top 10 holdings of the fund are:

  1. Narayana Hrudayalaya Ltd.
  2. Galaxy Surfactants Ltd.
  3. Fine Organic Industries Ltd.
  4. CCL Products (India) Ltd.
  5. Brigade Enterprises Ltd.
  6. Blue Star Ltd.
  7. Krishna Institute of Medical Sciences Ltd.
  8. JK Lakshmi Cement Ltd.
  9. Cholamandalam Financial Holdings Ltd.
  10. Birlasoft Ltd.

 

Axis Small Cap Fund: Overview

NAV (Net Asset Value)

Rs. 68.81

Fund size

Rs. 11,462 Cr.

Expense ratio

0.51%

Exit load

1% for investments beyond 10% if redeemed within 12 months

Minimum SIP

Rs. 100

Stamp duty

0.005%

Rank (total assets)

7 in India

Total AUM (Asset under management)

Rs. 2,61,160 crores

Benchmark

NIFTY Smallcap 250 Total Return Index

Higher alpha

5.96

Beta

0.71

 

Investment strategies of the Axis Small Cap Fund

The 5 year CAGR of the fund is 17.7%. So, considering the past data, it can be a good investment if you invest for a long term. Since it is a small cap fund, you may experience a short term downturn in your returns on the fund but do not exit and stick to your investment strategy. Hence, Axis Small cap fund is suitable for investors who are looking for 10 to 15 years. Also, check NIFTY live on a regular basis to stay updated.

 

To conclude, Investing in Axis Small Cap Fund can be a great way to invest in small cap companies. However, small cap companies are highly risky as they are highly volatile than mid cap and large cap companies. So, make sure to diversify your portfolio across different asset classes to minimize risk. Also, Investors are advised to invest in small-cap mutual funds for a duration of 10-15 years or longer, and the fund is suitable for long-term investment objectives.

 

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