Why Is Axis Long Term Equity Fund One of the Best Tax Saving Options Available?
Mutual funds are becoming a new trend for tax saving due to their various benefits over other methods. Axis Long Term Equity Fund has been among the favourites of the ELSS investors for tax saving due to its dramatic performance in the past and fundamentally sound investment strategy. The lock-in period of 3 years has been well utilised by the fund managers to deliver fruitful returns on tax saving scheme. Experienced financial experts at MySIPonline have taken a more in-depth look at Axis Long Term Equity Fund to assist the investors with a better investment practice.
Overview of Axis Long Term Equity Fund (G)
It has been a tremendous performer in its category and has beaten the benchmark as well as the category average in all the eight years of its existence. Since incorporation in December 2009, it has beautifully navigated through the ups and downs of the equity market though, tough bear like 2008 has not been faced yet. The standard deviation and Beta are lower than the benchmark while the Sharpe and Sortino ratios are high which means that Axis Long-term Equity Fund has delivered much better returns according to the risk it has influenced. The risk/reward factor is one of the primary reasons why it has a gigantic AUM of Rs 18,262 crore as on 31st July 2018.
It has generated 20.2% return in last 1 year and trailing returns of 25% in the previous five years and 18.98% since inception. The gains are the highest in its category and much above the benchmark.
Investment Style
The fund manager Mr Jinesh Gopani follows a growth style of investment through large and mid-cap stocks of good quality. A residual corpus (0-2%) is also invested in small-cap stocks. 25% is invested in mid caps to gather maximum returns. The risk factor is moderate while the gains are surplus. Finance and IT giants like HDFC Bank, Tata Consultancy Services, Kotak Mahindra Bank and HDFC are among the top holders. Banking and finance sector is mostly targeted as the cyclical sectors of consistent growth are mostly preferred by the fund manager.
Mr Jinesh Gopani has never allowed the scheme to provide negative returns to the investors as the rolling return of every 3 years has been commendable. He possesses experience with successful financial firms, hence he can navigate through any market condition though he has never faced a scary market.
The experts at MySIPonline suggest Axis Long Term Equity Fund to the investors who seek tax benefits through mutual funds. It can reduce the taxable income by up to Rs 1.5 lakh and allow the investors to gain wealthy returns over it. It is an excellent multi-cap fund which has proved itself in every aspect which makes is one of the best ELSS schemes in India. Invest in Axis Long Term Equity Fund today to experience the most convenient platform of investment. Investors can get the assistance of financial experts through call, chat, and email anytime.