Axis Long-Term Equity Fund
With over Rs 10,000 crore in assets under management, Axis Long-Term Equity Fund is the largest ELSS (equity-linked savings scheme) in India today by a fair distance. The fund’s investment philosophy has four pillars, namely: fundamental research, pricing power, strong management teams and risk management. Within fast-growing industries, it targets companies with pricing power, cost advantages, sustainable competitive advantages, innovative products or services and the business model’s ability to generate steady free cash flows over lengthy periods of time. The fund endeavours to buy and hold high growth, secular businesses run by dynamic management with integrity, and they have been consistent with this core philosophy since the fund’s inception.
The fund follows a multi-cap strategy, with typically 50 per cent or more allocated to large cap stocks. Its stock selection approach can best be summed up as quality, balanced with long-term growth potential. The fund looks for opportunities across market capitalisations while maintaining a balance between large, mid and small cap allocations within the portfolio. Resolutely sticking to their core philosophy, they are always in search of companies which can earn superior returns for investors.
Ideally Suited For… Risk-taking investors with a minimum time horizon of 5 years who are looking to reduce their tax burden under Section 80(C) and save for a long-term financial goal alongside
Why Invest Here in 2017? Axis Long Term Equity Fund is currently biased towards stocks that have the potential to deliver superior medium- to long-term returns. These include companies from private sector banks, autos, auto ancillary, housing and consumption, as well as bottom up stock picks in the pharma, IT and defence space. Its multi-cap strategy and ‘bottom up’ approach makes it an ideal tax-saving cum wealth-creation investment in the current stock picker’s market.
