By Ashish Kyal –
Warren Buffet quotes, “If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes”, i.e. long term should be the view for maximum profits. Same goes with investments in mutual funds. A fund which has grown in short time span to become the largest in the ELSS category, Axis Long Term Equity Fund has a strategy of buying quality stocks with a long term growth perspective. It diversifies the holding in various large cap and mid cap companies. The fund has proved its capabilities in the past by giving good amount of returns with its expertise and smart holdings even in bear market.
Overall it’s a solid fund if you like to own quality business in a listed space.
Axis Long Term Equity Fund – Growth Daily Chart
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.
Portfolio Analysis:The major holdings of this fund are into Banking and Automotive sectors. Below is the table shown of Sectorial allocation of this fund.
Returns: In past the fund has provided with following returns.
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 move in sideways to negative action over near term. Faster move above 32.50 will indicate that next bull trend in this fund has started which will create wealth for investors. On downside move below 27 levels will suggest that second standard correction is taking its place.
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