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Axis Bluechip Fund: Large Cap Winner
Wed, Jun 13, 2018
Source : Yash Jashnani, Citrus Interactive

Axis Bluechip Fund is an open ended large cap equity diversified fund. The fund has assets under management (AUM) of Rs. 1,989 crore as on 30th April 2018 which has increased by Rs. 100 crore compared to last year as on 30th April 2017.

Performance

The fund’s performance across various time horizons is extremely good as seen in the table given below. It has outperformed its benchmark in all the time periods. It has also outperformed the category average in all the time periods.

Scheme Name

YTD

6 Months

1 Year

3 Years

5 Years

Since Inception

Axis Bluechip Fund

5.95

9.76

20.75

11.56

15.82

12.48

NIFTY 50 – TRI

2.37

4.36

17.01

10.89

14.03

16.13

Category Average

-2.85

-0.85

9.77

11.19

19.58

NA

Rank

2/132

1/132

4/129

52/124

81/113

NA

Figures are in % as on 31st May 2018; Returns above 1 year in Compounded Annual Growth Rate (CAGR)

In terms of the calendar year returns the fund has outperformed its benchmark in all time periods except for 2016. It has generated lower returns than the equity diversified category in each of the last 5 calendar years except 2013. The underperformance was marginal in 2017.

Scheme Name

2013

2014

2015

2016

2017

Axis Bluechip Fund

13.49

40.85

-1.24

-3.62

38.03

NIFTY 50 – TRI

8.07

32.9

-3.01

4.39

30.27

Category Average

5.07

56.03

4.3

4.65

38.61

Rank

3/111

92/114

100/121

122/125

64/125

 

Risk: In terms of Standard Deviation (measured over the last 3 years) the fund has taken lower risk as compared to its category median and in terms of Beta (measured over the last 3 years), the fund has taken higher risk as compared to the category median.

 

Standard Deviation

Beta

Axis Bluechip Fund

0.81

0.92

Category Median

0.95

0.84

 

Risk-Adjusted Return: In terms of Treynor and Sharpe (measured over the last 3 years) the fund has provided risk-adjusted returns equal to the the category median.

 

Treynor

Sharpe

Axis Bluechip Fund

0.04

0.05

Category Median

0.04

0.05

Portfolio

Sector concentration: The fund’s concentration in the top 3, 5 and 10 sectors is higher than the category median.

 

Top 3

Top 5

Top 10

Axis Bluechip Fund

39.24

51.24

68.42

Category Median

30.37

41.06

61.07

All figures in % as on 30th April 2018

Company concentration: The fund’s concentration in the top 3, 5 and 10 companies is higher than the category median.

 

Top 3

Top 5

Top 10

Axis Bluechip Fund

24.55

36.55

55.37

Category Median

16.05

24.46

39.98

All figures in % as on 30th April 2018

Number of Equity Holdings: The Fund currently holds 30 stocks in its portfolio (30th April 2018), which is lower than the median stock count of the equity diversified category, which currently stands at 50. In the last 5 years the equity holding averages to 39.

Cash Equivalent:        

Its cash equivalent for April was 5.25%. The average cash allocation for the last five years is 3.54%. Its maximum allocation to cash over the last two years is 7.39% in February 2016 and lowest was -2.50% in March 2016.

Portfolio Characteristics:

The top 5 sectors include Bank – Private, Automobiles - Passenger Cars, IT - Software, Finance – Housing and Finance – NBFC.

In the last 6 months the fund has bought Ashok Leyland Ltd., Bandhan Bank Ltd., Eicher Motors Ltd., Hindalco Industries Ltd., Infosys Ltd., Larsen & Toubro Ltd., MRF Ltd., Reliance Industries Ltd., Tech Mahindra Ltd. and Titan Company Ltd.

Stocks of ACC Ltd., Ambuja Cements Ltd., Bharat Electronics Ltd., Dr. Reddys Laboratories Ltd., GAIL (India) Ltd., HDFC Standard Life Insurance Co Ltd, Hero MotoCorp Ltd., Indraprastha Gas Ltd., ITC Ltd., Petronet LNG Ltd., State Bank Of India, United Spirits Ltd., UPL Ltd., ICICI Bank Ltd. and Ultratech Cement Ltd. have been dropped from its portfolio in the last 6 months.

Process

The Scheme will invest predominantly in equity and equity related instruments of large cap companies with strong growth and sustainable business models, whilst managing risk. The portfolios will be built utilising a bottom-up stock selection process, focusing on appreciation potential of individual stocks from a fundamental perspective.

The AMC employs a fair value based research process to analyse the appreciation potential of each stock in its universe (Fair value is a measure of the intrinsic worth of a company). The universe of stocks is carefully selected to include companies having robust business models and enjoying sustainable competitive advantages as compared to their competitors. 

The fund’s portfolio will be managed actively, with an objective to provide to the investor, a diversified portfolio of strong growth companies, reflecting our most attractive investment ideas, at all points in time. The scheme by utilizing a holistic risk management strategy will endeavour to manage risks associated with investing in equity markets.

The scheme would invest 80-100% in equity and equity related securities of large cap companies and 0-20% of the assets would be invested in equity and equity related instruments of other companies. The scheme would also invest 0-25% in Debt and Money Market Securities.

Investment in securitized debt (excluding foreign securitized debt), if undertaken, would not exceed 20% of the net assets of the scheme.

Fund Manager 

Mr. Shreyash Devalkar is a fund manager of equities at Axis Asset Management Company Limited since November 16, 2016. Previously, Mr. Devalkar was a fund manager of equities at BNP Paribas Asset Management India Private Limited since October 3, 2011. From April 2011 to October 2, 2011, Mr. Devalkar was an equity analyst at BNP Paribas. Mr. Devalkar also served as an equity analyst in the PMS division at BNP Paribas from January 2011 till March 31, 2011. He has over five years’ experience in equity markets and he specializes in the information technology, telecommunication services, industrials, and utilities sectors.

From July 2008 till January 2011, Mr. Devalkar was the Vice President of investments at IDFC Asset Management Company Limited. From September 2005 till July 2008, he was the Vice President of Research at IDFC Capital Limited. Mr. Devalkar was an Analyst at JP Morgan Services India Limited from September 2004 to August 2005. He was a Manager at Calyon Bank from December 2003 to August 2004. Mr. Devalkar served as an executive engineer at Larsen and Toubro Limited from August 1999 to July 2001.

He holds an MMS in finance from Jamnalal Bajaj Institute of Management Studies, Mumbai University. Mr. Devalkar also holds a Bachelor of Chemical Engineering degree from UDCT, Mumbai.

Our View

Axis Bluechip Fund has been a turnaround story with the recent sharp pick-up in performance. The new fund manager at the helm has demonstrated good stock picking skills. It can be considered for your large cap allocation.

 

 
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