Axis Mutual Fund | Axis Long Term Equity FUND - Growth| Best SIP 2016

Review for Axis Mutual Fund - Long Term Equity FUND - Best Rated Mutual Funds by Crisil

Axis Long Term equity fund, earlier known as Axis Tax Saver is a very good plan if you are planning for long term wealth creation PLUS Tax saving. The objective of the scheme is to generate income and long-term wealth creation from a diversified portfolio of predominantly equity and equity related securities.

Axis Long Term Equity Fund was launched on December 2009, and is classified in the ELSS category of the CRISIL mutual fund ranking and has been at Top rank for last 13 quarters. The investments in ELSS funds are subjected to a lock-in period of three years in order to be eligible for tax deduction upto 1.5 Lakhs under section 80C of Income Tax Act. The lock-in creates a situation where both investor and fund manager interests are aligned in looking at long term opportunities and ignoring short term noise. Source

In Short, Axis Long Term Equity Fund is suitable for Investors who are seeking :

•  Capital appreciation over long term

• Investment in a diversified portfolio predominantly consisting of equity and equity related instruments.

Scheme Details:

Fund Type : An Open-ended equity-linked savings Scheme with a 3 year lock-in

Investment Plan : Growth/ Dividend

Allotment date : Tuesday, December 29, 2009

Benchmark : S&P BSE 200

Minimum Investment : Rs.500 & in multiples of Rs.500 thereafter 

Additional Purchase : Rs.500 & in multiples of Rs.500 thereafter

Sleep in Peace (SIP) : Monthly - Rs.500 & in multiples of Re.1 thereafter

                                     Yearly - Rs. 6,000 & in multiples of Rs.500 thereafter

Entry Load : Nil

Exit Load : Nil (Since Inception)

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My Personal Review for Axis Long Term Equity Fund

I always encourage others to gain exposure to equity to beat inflation Good ELSS offer us two important benefits : 

1. Long Term wealth creation
2. Tax savings under section 80c

The Axis Long Term Equity Fund or as a matter of fact, any ELSS performance mostly depends on the fund manager . That is why you need to keep an eye for fund manager changes. The performance of a fund will change in either of the two possible direction whenever manager changes.

Read : How is HDFC CREST ULIP Plan - Its Benefits and catch

The average expected return for this fund is as below :

1 year - 5.4 % ( Approx )

3 Years - 26.6 % ( Approx )

5 Years - 18.8 % ( Approx )

I will give you a real example  Suppose you invest 5000 rupees per month in Axis Long Term Equity Fund for a period of 5 years, e.g 60 installments, then your total investment would be 300,000 rupees. As per the calculation of previous year, your Final value would be around 5,50,000 which amounts to approx 25% CAGR.

I must say, its a brilliant return. Plus you are getting tax benefit as well.

Sector Allocation & Holdings

It is also important to note that the fund has fairly diversified holdings. We can also see that the fund holds some high quality stocks as of today.

This is turn may translate into good returns in future as well for investors. Banking & Finance has the highest allocation. We can sense that this might have been done with the anticipation of economic recovery expected in nest 3-5 years time.

However if that happens or not is yet to be seen. The past performance of the fund may be better or worse and depends on how the underlying stocks perform.

My Final Rating : 4 / 5 

*This is my personal review for AXIS LONG TERM EQUITY FUND ( TAX SAVER ) . Please go through more reliable sources, before making investments *

So, Based on my ratings and detailed information, What do you think ? Does this product deserves a place in your portfolio ?

Please share your views and queries in the comment section below .

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