Axis Long Term Equity Fund

Axis Long Term Equity Fund is managed by Jinesh Gopani. The scheme aims to generate regular long term capital growth from a diversified portfolio of equity and equity related securities. The scheme will follow top-down approach of equity selection. If you are a new investor you can skip this fund for a better ELSS.

Where does Axis Long Term Equity Fund invest your money?

Axis Long Term Equity Fund has multi cap allocation which means your money will be invested in stocks of large, medium and small sized companies. About 34.05% of the fund’s money is allocated to stocks of mid sized companies, 52.61% to stocks of large sized companies and 13.34% to those of small companies. Mid sized stocks can give kicker returns as they turn into large stocks but this happens not so frequently.

Suitable for what?
  • Saving on tax outgo
  • Child's education
  • Child's marriage
  • Planning for retirement
Not suitable for what?
  • Creating wealth
  • Short term needs
  • Lifestyle needs
How has Axis Long Term Equity Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in December 2009, your value of investments would be around Rs 1.49 lakhs. The performance has been close to the average returns of ELSS. 

Assume you had invested Rs 10,000 every month in Axis Long Term Equity Fund through SIP from Dec 2009 today you would have around Rs 4.53 lakhs.

How will Axis Long Term Equity Fund perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follow their performance. So if you expect the economy to grow at 8% then you can expect top performing mutual funds to give you returns in excess of 14%.

Mutual fund schemes that have exposure to mid-sized companies tend to show results when their bet on few companies comes true. We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
When to exit?

Withdraw when your goals are close to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

How frequently you need to monitor the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What are the charges applicable?

Investment is locked-in for 3 years after which you can withdraw freely. Expense ratio of Axis Long Term Equity Fund is 2.78%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you do not withdraw within 1 year. Axis Long Term Equity Fund qualifies for sec 80C ELSS benefits, which means you can invest up to Rs 1 lakh a year in this fund and deduct the amount from your gross total income for computing income tax.

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