Axis Bluechip Fund: Features & Benefits

As written on 18^th Feb 2021

Mutual funds can be a great way to earn capital appreciation for those with a long term investment horizon. Investors looking to diversify their investment portfolio with market linked schemes can consider investing in equity mutual funds.

Equity schemes are open ended mutual fund schemes that aim at generating capital appreciation over the long term by investing in equity and other equity related instruments. Since these are high volatile investments, retail investors should first prioritize their goals through financial planning before making an investment decision. If you are sure about how much corpus you need to build, how many years you have in hand to achieve it, and also know your appetite for risk, you might be able to understand which mutual fund is best for you.

Large cap schemes are equity mutual funds that invest in company stocks of well-established and financially stable organizations. As per SEBI norms, a large cap fund must invest a majority of its assets in stocks of top 100 companies in terms of market capitalization. Such companies have earned a reputation for being financially stable and have a proven track record. This is what makes large cap funds a feasible investment option for investors with a long term investment horizon.

Axis Bluechip Fund

Investors keen on diversifying their investment portfolio with a large cap scheme can consider investing in Axis Bluechip Fund. Axis Bluechip Fund is an open ended equity scheme predominantly investing in large cap stocks. The investment objective of Axis Bluechip Fund is to achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity related securities of large cap companies including derivatives. However, there can be no assurance that the investment objective of the scheme will be achieved.

Features and Benefits of Axis Bluechip Fund

It is essential for every investor to understand the pros and cons of investing in a particular scheme. Here are some of the salient features of Axis Bluechip Fund:

• Axis Bluechip Fund invests predominantly in large companies. Such companies are traded frequently and hence liquid and also less volatile as these stocks have a proven track record, business models and capable enough to deliver long term consistent returns
• The Axis Bluechip Fund aims to outperform the benchmark with risk lower than the benchmark
• Axis Bluechip Fund predominantly invests in equity for generating capital appreciation. Equity as an asset class holds potential to beat inflation and generate long term wealth
• By investing in Axis Bluechip Fund, investors can target their life’s long term financial goals such as children’s education and their future, retirement or any other long term growth that needs wealth creation plan through long term investing

Start a SIP or make a lump sum investment in Axis Bluechip Fund

In case you want to start investing in Axis Bluechip Fund, there are multiple investment options. One can either make a one time lump sum investment or they can start a monthly SIP using our Mutual Fund App. If you wish to inculcate the discipline of regular investing, you can consider starting a SIP. Systematic Investment Plan (SIP) is an easy and convenient way to invest in Axis Bluechip Fund. Investors can start investing in Axis Bluechip Fund with a minimum SIP investment amount of Rs. 500 thereafter in multiples of Rs. 1. Every month on a fixed date, a predetermined amount is debited from the investor’s savings account and electronically credited to the fund. Investors can also use SIP calculator, a free online tool to help them determine the approximate capital appreciation they may stand to gain by investing in Axis Bluechip Fund for a specific time.

Benefits of SIP investing

SIP can be an ideal way to target one’s long term financial goals. Investors do not need a large capital to start investing. They can invest small amounts at regular intervals and gradually build a mutual fund corpus. Also, depending on the performance of the scheme, the invested amount might continue to accrue interest. If you do not redeem your Axis Bluechip Fund units and allow reinvesting, your investment can benefit from the power of compounding. In mutual funds, compounding refers to the interest earned on the interest earned from your initial investments. Another investment technique which SIP investors benefit from is rupee cost averaging. When the NAV (net asset value) of the scheme is low, more units are allotted. Similarly, when the NAV of the scheme is high, lesser units are allotted. Since the SIP amount remains stagnant, this adjustment of allotment of units depending on the fluctuating NAV is referred to as rupee cost averaging and allows investors to even benefit from falling markets.

Investors are expected to consult their financial advisor before investing in Axis Bluechip Fund.

Axis Bluechip Fund
An open ended equity scheme predominantly investing in large cap stock

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.