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 .

Read : How is HDFC Pro-Growth ULIP SIP

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HDFC Crest ULIP Life Insurance Plan Review

HDFC Crest Life Insurance ULIP Plan - Benefits , Procedure and catch

HDFC SL Crest 

HDFC SL Crest claims that there should be a plan which should not affect your plans of securing happiness for yourself and your family. HDFC SL Crest is an insurance-cum-investment plan that aims at providing financial protection to your family. It acts as an investment option that provides the highest NAV ( Net Asset Value ) along with a guarantee on returns*. So, when you reap the returns in life, they are on crests and not on lows hence the name. In this plan, you can choose to invest in any one of the two options available : Highest NAV Guarantee Fund or free Asset Allocation Option.

What HDFC SL Crest Offers 

The HDFC SL Crest offers :

• Benefit of paying premiums for a limited term
• Valuable financial protection to your family in case you are not around
• Benefit of highest NAV at maturity
• Benefit of Minimum guaranteed NAV of Rs.15 at maturity
• An outstanding investment opportunity that maximizes your savings by providing you a choice of thoroughly researched investment selection.

Features and Benefits 

Higher Allocations : 

Level of Protection :

You can choose any amount as Sun Assured with a minimum of 10 Times and a maximum of 20 times your chosen regular premium.

Premium Paying Term : 5 years

Term Limits :  Term of the policy is 10 years or 15 years

Age Limits :

Minimum age at the entry : 14 years

Maximum age : 55 years

Maximum Age at the maturity : 65 Years

Investment Options available : 

• Highest NAV guaranteed fund 
• Free asset allocation

Benefits

• Choice of two investment options.
• Benefit of minimum guaranteed NAV of Rs. 15 at maturity
• On maturity , you will receive the fund value as per the investment option selected
• It provides valuable protection to your family in case you are not around. In case of unfortunate occasions during the policy term, the amount higher then your sum assured will be paid to your nominee.
• This plan can be taken by filling a short medical Questionnaire, which may not require you to go for various medical checks. 
• Tax benefits are offered under section 80C and 10D of income tax act, 1961

Application Process 

It just takes a few minutes and clicks to get insured. Apply today and manage your finances easily 

Apply Now

Our Final Verdict : 

CREST is most likely an investment scheme than a Life insurance plan. The guarantee of Highest NAV of Rs 15 provided is an exceptional factor in this product. Also the higher lock period is an added advantage . The past records of HDFC is quite impressive and hence you can go ahead and make investments.

" Dont miss our review and procedure for HDFC ProGrowth Plus Plan "

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HDFC Progrowth Plan SIP ULIP Insurance Mutual Fund Details

What is the return rate for HDFC ProGrowth Plan ? Is it safe to Invest in Mutual Funds or SIP or ULIPS ?

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HDFC ProGrowth Plus : 

HDFC ProGrowth Plus is a Unit Linked Insurance Plans ( ULIP ) , so there is not any bonus as such, but it has a lot of great features. If you keep insurance returns and Bonus aside, and think of best insurance plan to invest for great returns and tax saving under Income Tax Act ( 80 C ), then you are at the right place.

In this HDFC ProGrowth Plus plan, customer needs to pay the premium till the end of the policy tenure. There are five ( 5 ) types of funds for investment, where the policyholder can choose his investment portfolio based on his own risk tolerance level.

The two variants of Plan includes :

• Life Cover Option -  It's the basic version without any additional features.
• Extra Life Cover Option - Here, in this plan, an in-built Accident death benefit is added by default. so, if you are choosing this plan, the sum insured alongwith death benefits are given to the nominee.

In both the variants, the Fund value is paid to the policyholder as Maturity Benefits.

Benefits of HDFC Life ProGrowth Plus Insurance Policy :

Death Benefit - In case of death of the Policy Holder within the Policy Tenure, the nominee will get higher of Sum Assured or Fund Value as Death benefit before terminating the policy.

Maturity Benefit - The all fund value is paid as maturity benefit on the policy maturity or end of the term plan duration.

Income Tax Benefit ( big one ) - Life insurance premiums pad up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80 ( c ) subject to fulfilment of Terms and Conditions.

Eligibility Criteria and conditions in HDFC Life ProGrowth Plus Policy

Additional Features and Benefits of HDFC Life ProwGrowth Plus Plan

Investment Fund Options 

There are five investment funds available in this plan which includes :

• Short Term Fund
• Income Fund
• Balanced Fund
• Blue Chip Fund
• Opportunities

Partial Withdrawl 

Policy Holder is allowed to make partial withdrawals in this plan after completion of five years or the life assured is 18 years old, whichever is the case. The minimum amount of partial withdrawal is Rs. 10,000 and maximum withdrawal is allowed upto 300% of the regular premium amount.

FAQS related to HDFC Life ProGrowth Plans 

What happens if : 

you stop payment before 5 years - If the policy Holder stops paying the premium, the insurance cover will get terminated and the fund value net of any discontinuity charge will be taken by the autorized personal and then the amount invested plus benefits ( in 5 years ) will be paid back to the policy holder after the maturity of the plan. However , the policy can be revived within 2 years from the due date of the first unpaid premium.

you stop paying premium after 5 years or maturity - 

If the policy holder wants to surrender the policy after maturity period, then the insurance cover will cease after that and your fund value will be paid immediately and policy will be terminated.

you want a loan against your policy -  There is an option to apply for loan upto 40% if the surrender value provided the holder is above 18 years of age. The amount taken can be paid in emis or the amount will be adjusted during maturity.

Other ULIPS from HDFC Life Insurance 

HDFC Life Crest Plan

HDFC Life Pro Growth Super II Plan

HDFC Life Pro Growth Maximiser Plan

HDFC Life Pro Growth Flexi Plan

HDFC Life Smart Woman Plan

HDFC Life Invest Wise Plan

Some ULIPS from Other Insurance Companies 

ING Prospering Life Plan

LIC Endowment Plus Policy

Reliance Life Insurance Classic Plan

Birla sun Life 99 Tax Savings Plan

If you have any doubts or questions , please feel free to comment here.

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