Exposure to ‘MR. Market’ with tax benefits!

By Rahul Pithadia : In today’s generation dual benefits attract the herd as crowd is always greedy to fill their pockets with maximum surplus. As an investor it is important to go through the fundamentals of the fund, returns generation and other portfolio related information because asset allocation plays a vital role in financial planning. For long term capital growth along with tax benefits here is the better option to Dive In!

 Axis Long Term Equity Fund – Growth is an open ended Equity Linked Saving Scheme [ELSS] which has a lock in period for 3 years.

Taxation: This fund aims for “SHARE LESS SAVE MORE”. This fund helps the investors to get tax rebates under section 80 C of Income Tax Act.

 Axis Long Term Equity Fund – Growth Daily Chart

AXIS  long term equity fund 2016081016

Portfolio Analysis: The major holdings of this fund are into Banking and Automotive sectors. Below is the table shown of Sectoral allocation of this fund.

Sector allocation Axis equity fund 2016080116

Risk: This fund has concentrated exposure to sectors and so the risk is high. Also we are seeing loss of momentum on upside which is a caution sign. Fresh investments should be done in form of SIP only with time horizon of three years or more….

Investment rationale: Axis Long Term Equity ELSS scheme can show some under performance as the overall equity market is undergoing through sideways to negative correction. The long term uptrend should resume after few months of correction. Till then investments can be done in this fund by way of SIP. Any retracement towards 23.6% zone at 29 – 30 will provide good entry level that will help to ride the next wave of Bull Trend over coming years!

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