India is a growth market and successful investing in India requires a focus on the growth potential of companies. However, within the Indian markets there is a large dispersion in performance across companies. Many companies that do well on the back of economic tail-wind, tend to struggle and destroy value when the cycle turns. As a long term investor, focusing purely on growth while ignoring quality is, in our experience, not a successful strategy.
The confidence of quality companies
We define quality companies as those that have credible management, are able to sustainably grow profits and cashflows and have a clean balance sheet to support growth. Growth is clearly important in our approach but the focus is on the sustainability of that growth which more often than not, leads us to seek out quality companies. Our research suggests that over the long term, quality companies are able to sustain stock performance and generate wealth for shareholders across market cycles. Presenting Axis Focused 25 Fund - a fund that attempts to unearth and invests exclusively in just these quality companies. The fund looks maintains a high conviction approach – with a maximum of 25 stocks in its portfolio at any time. While this offers the benefit of higher exposure to the best ideas, the focus on sector diversification and risk management is maintained in order to achieve sustainability in performance.
Key Features of Focused 25 Fund
- Diversified equity fund that invests primarily in the Top 200 stocks by market capitalization
- High conviction investing with a maximum of 25 stocks in the portfolio
- Embedded risk management to manage risks of portfolio concentration
- EasyCall facility available
This Product 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.
Investors should consult their financial advisers if in doubt about whether the product is suitable for them