Things to consider before investing in Axis Growth Opportunities Fund

Axis growth opportunities fund might help investors seek long term capital appreciation. This fund invests in equity and equity related instruments of local as well as foreign markets. Thus, investors are expected to consider a few things before making an investment in Axis growth opportunities fund.

Determine your risk appetite

You must know that this fund invests in both Indian economy as well as in international markets. Since it is an equity oriented scheme, investments made in this type of fund are exposed to market vagaries. Also, returns from equity investments are never guaranteed. This is why investors should first determine their risk appetite before investing in a growth opportunities fund.

Consider a long term investment horizon

Just like determining your investment objective and risk appetite is important, investors should also have a long term investment horizon if they are considering investments in a growth opportunities fund. Since this fund predominantly invests in equity and equity related instruments, if you seek capital appreciation then you might need to have an investment horizon of at least 5 years. Investors need to have the willingness to remain committed for the long run if they really want to witness their investments turn into a decent corpus.

Whether you want to make a lump sum investment or start a SIP

Lump sum: There are two ways to make an investment in a growth opportunities fund – investors can either make a onetime lump sum payment or they can opt for a Systematic Investment Plan (SIP). A lump sum investment is the traditional way of making an investment in a growth opportunities fund. These units are allotted in quantum with the investment amount and depending on the fund’s existing NAV. Suppose you make a lump sum investment of Rs. 50,000 in a growth opportunities fund and the NAV of the fund stands at 10, you will be allotted 5000 units.

SIP: A Systematic Investment Plan or SIP on the other hand is an easy and hassle-free approach towards mutual fund investments. Even if you do not have a large amount in hand, you can still invest in  Axis growth opportunities fund. The beauty of SIP is that it allows investors to invest small amounts at regular intervals. This way only the monthly SIP amount is exposed to market volatile and not the entire finances of the investor. Suppose you wish to invest 3 lakhs in Axis  growth opportunities fund over the course of three years and you plan to do so by investing Rs. 10,000 per month through SIP, only the money that you invest per month will be exposed to market volatility and not the entire Rs. 3 lakh. However, if you made a lump sum investment right at the beginning of the investment cycle, you will have all your money at the mercy of market vagaries.

Whether you want to go with the direct plan or regular plan

Direct plan: A direct plan, avoids involvement of third parties.  This is also why the AMC doesn’t have to pay any commission fees to a distributor or broker. Since there is no commission involved the expense ratio of owning any Scheme with a direct plan is low. If you are keen on investing in a direct plan, you can do so by simply visiting the AMC’s website online using a laptop or a smartphone with internet connection or by manually visiting the AMC.

Regular Plan: Regular plans are bought through through intermediaries like brokers, distributors, advisories etc. However, since there is a third party involved, the expense ratio for owning a growth opportunities fund with a regular plan is higher as compared to direct plan.

Now that you are aware of some of the things to consider before making an investment, plan on investing in Axis Growth Opportunities fund? It aims to generate long term capital appreciation by investing in a diversified portfolio of equity and equity related Instruments both in India as well as overseas. However, there can be no assurance that the Axis Growth Opportunity Fund will be successful in achieving its investment objective.

Axis Growth Opportunities Fund
An Open-ended Equity Scheme investing in both large cap and mid cap stocks

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