Features & Benefits of Axis Focused Fund

If you are someone who wishes to improve their existing financial condition, then you need to start investing. The investment market is flooded with a variety of products and sometimes, picking the right fund can become a tedious task. No matter where you decide to invest, make sure that you always have a defined financial goal. This way, you will have a target in mind, and you will have a fair idea of how much money you need to invest regularly in order to achieve or get near to your targeted corpus.

The next thing for investors to do is identify their risk appetite and only invest within their limits. It is essential to know how much amount of risk you can take because it will help you understand whether you are an aggressive investor or someone who is more on the lines of being conservative. When we say conservative, we mean that someone who is alright investing in traditional tools that offer low but guaranteed returns (might not be true every time). But if you are someone with a long term investment objective who doesn’t mind taking the extra risk with the hope of fetching capital appreciation, you can consider investing in mutual funds.

Investors with moderately high risk appetite who are seeking capital appreciation through long term equity investment can consider investing in equity fund like Axis Focused Fund. This is an open ended equity scheme which invests in maximum 25 stocks of large cap, mid cap and small cap companies. Axis Focused Fund aims to generate long term capital appreciation by investing in a concentrated portfolio of equity & equity related instruments of up to 25 companies.

If you wish to find out more about Axis Focused Fund, such as its features and benefits, read further:

Features of Axis Focused Fund

· Axis Focused Fund is a scheme which invests in a concentrated portfolio of high conviction ideas (up to 25).

· Axis Focused Fund focuses on companies that have the capability to sail through their business cycles without being affected by short term market volatility.

· While Axis Focused Fund offers the benefit of higher exposure to the best ideas, the portfolio is well diversified across sectors to manage risk.

· Axis Focused Fund invests in equity, which, as an asset class holds the potential to beat inflation and generate long term wealth.

· Axis Focused Fund might help an investor achieve long-term investment goals such as children’s education and their future, retirement or any other long term growth that needs wealth creation plan.

This is how Axis Focused Fund is currently strategizing in order to fetch some capital appreciation.

Current investment strategy followed by Axis Focused Fund

· The fund manager runs a high conviction portfolio, containing the fund manager’s best ideas, and invests in up to 25 stocks.

· Despite concentrated portfolio, suitable diversification, and focus on risk management has kept the fund’s risk contained relative to the benchmark.

· The stock selection approach focuses on businesses where earnings can compound at a much higher rate than peers due to the superior quality of their business model.

· The fund has maintained a broadly stable portfolio over the last few months.

Benefits of Investing in Axis Focused Fund

Equity investments may turn out to be an essential investment for those seeking long term capital growth. The risk-return factor in mutual funds may vary from one scheme.

The following are some of the benefits of investing in Axis Focused Fund:

· Axis Focused Fund is a professionally managed fund: The reasons a lot of investors prefer not to invest in direct equities is because they lack adequate knowledge about the equity market. Hence, they fear to expose their finances to direct equities. But in the case of Axis Focused Fund, this fund is managed by a Mr. Jinesh Gopani who holds vast experience in managing funds. Having such professional managing the mutual fund may allow an investor to invest in this equity fund even without possessing in-depth knowledge or understanding about the equity market. In fact, Axis Focused Fund, might prove to be a viable option for those individuals who wish to invest in the equity market but lack financial market expertise. 

· Axis Focused Fund might help you diversify your mutual fund portfolio: By now, you must be aware that Axis Focused Fund invests in small, mid and large cap company stocks. Because this fund invests in varied proportions in company stocks across all market capitalization, investing in this equity scheme might help you in diversifying your investment portfolio. 

· Axis Focused Fund holds the potential capital appreciation: It goes without saying that apart from savings, the reason why investors choose to invest is to seek some kind of capital appreciation. Axis Focused Fund might be one of the funds which might be able to help investors build a corpus over the long term. The reason individuals invest is that they aspire to improve their existing financial condition. Hence, if stayed invested keeping a long term investment horizon in mind, investors might be able to seek some capital appreciation from their investments in Axis Focused Fund. But as stated earlier, capital appreciation may solely depend on the scheme’s performance. 

· Axis Focused Fund offers liquidity: Another advantage which this scheme holds is that it provides liquidity for its investors. Axis Focused Fund has no lock in period. This way, an investor depending on his/her need, may choose to redeem or withdraw their investment according to their convenience. Investors can liquidate their mutual fund investments in a simple and easy way. This way, you may easily be able to transfer the corpus accumulated in your bank account, which is linked to your fund. This redeeming process might differ depending on your invested AMCs policies. Axis Focused Fund offers units for subscription and redemption at NAV based prices on all working days on an ongoing basis. Under normal circumstances, the AMC shall dispatch the redemption proceeds within 10 business days from the date of receipt of the request from the Unitholder.

· Long term investment in Axis Focused Fund allows investments to benefit from the power of compounding: To put it in simple words, compounding in mutual funds refers to the interest earned on the interest or profits made on the profits from your investments. Power of compounding may help smaller investments to grow and fetch capital appreciation in the long run. So, instead of withdrawing or redeeming their investment, if investors choose to stay invested in Axis Focused Fund for a more extended period of time, they might benefit from compounding.

How to invest in Axis Focused Fund?

You can invest in this fund via two payment options- either through SIP or Lump sum. 

SIP: Investors can give their investment a systematic approach by opting for SIP. Systematic Investment Plan or SIP is a systematic approach where investors can invest in mutual funds in a hassle-free manner. All an investor has to do is instruct his/her bank, and a predetermined amount will be deducted every month on a predetermined date and directed to their mutual fund. SIP may also aid an investor in inculcating the discipline of saving regularly. Another great thing about SIP is that one may begin investing in a mutual fund with an amount as low as Rs. 500 per month. Giving the mutual fund investment an SIP approach may also result in investors staying committed for a more extended period of time. In case investors want to invest a considerable amount of money in their mutual fund scheme, they may opt to invest via lump sum at the beginning of the investment cycle.

Lump sum: When investors have a substantial amount parked in their savings account which they wish to invest in order to fetch some capital appreciation, may choose to pay the entire premium amount at the beginning of the investment cycle. This method of payment is known as a lump sum investment.

Axis Focused Fund is available for investors in two options: Growth and IDCW. In growth option, if the scheme manages to make any profits, these gains are invested back into the scheme. Over time, this may result in the growth in the net asset value of the scheme. Due to some vagaries in the market, if the scheme fails to perform, the NAV of the fund goes down. When the scheme performs, the NAV goes up, and when the market is on the decline, the NAV goes down. Investors, if they wish to enjoy the profits, can opt to sell or redeem their investments in growth option.

On the other hand, the IDCW option refrains from reinvesting your gains or profits made by the fund. Investors have a payout option where these gains or profits made by the scheme are distributed in the form of IDCW to the investor from time to time. The amount and frequency of IDCW, however, are never guaranteed. IDCW can only be declared when the scheme makes a profit. This also is solely at the discretion of the fund manager.

Should you invest in Axis Focused Fund through growth or IDCW option?

Well, the answer to this question may depend on what type of investor you are and your requirement of funds. If you are someone who is relying on your investments for a regular income, the IDCW option might work in your favor. When the markets are all time high (which might not be the case every time), investors may benefit from the IDCW option. However, investors opting for IDCW may lose out on the benefit of the power of compounding. Investors with a long term investment horizon might find growth option a bit more suitable for them, and these investors also stand a chance of benefiting from the power of compounding.

Is there any exit load?

If redeemed / switched-out within 12 months from the date of allotment: For 10% of investments: NIL For remaining investments: 1% If redeemed / switched-out after 12 months from the date of allotment: NIL

Mutual funds are equity oriented schemes which collect money from investors sharing a common investment objective and invest that fund in various money market instruments like equity, debt, government securities, corporate bonds, etc. Diversification also minimizes the risk of your overall portfolio because if one sector or industry collapses, the other underlying assets usually help in overcoming losses.

However, investors should bear in mind that mutual fund investments are exposed to market risk. Such equity investments expose to market volatile, and hence, returns are never guaranteed. But this doesn’t mean that you are bound to lose your money. Try and have a diversified portfolio and if possible, remain invested for the long run. Long term equity investments tend to outperform and are usually successful in beating their benchmarks.

Investors seeking long term capital appreciation in their overall investment portfolio may want to consider investing in Axis Focused Fund. But they should bear in mind that the above stated features or advantages of the Axis Focused Fund may not live up to their expectations in all circumstances. Hence, it is advisable for investors not solely to depend on Axis Focused Fund as their investment choice and to diversify their overall portfolio. 

Long term investment is necessary to achieve capital gains. Investors need to be patient and allow the money to do some hard work. Equity fund investments, if given a chance to grow, may be able to help investors in reaching their ultimate financial goal. Patience is the key, and investors should try and stay committed to their investments if they want to fetch some capital appreciation in the future. No investment is a safe investment, but if you have a long term investment objective, you might be able to get closer to your ultimate financial goal eventually.

Axis Focused Fund

An open ended equity scheme investing in maximum 25 stocks investing in large cap, mid cap and small cap companies

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