Axis Value Fund

Axis Value Fund is an open-ended equity scheme that follows a differentiated value investing strategy. The fund seeks to provide long-term capital growth by investing in stocks that are trading below their intrinsic value but have strong fundamentals and the potential to improve and re-rate over time.

Axis Value Fund offers several reasons to consider it:
-    Valuations: It seeks out companies trading at lower multiples in their industries.
-    Fundamentals-Based: The fund focuses on opportunities to improve Return on Equity (ROE) during economic cycles, potential long-term earnings growth, and                  prudent leverage management.
-    Medium to Long-Term Focus: It aims to create wealth through multiples re-rating and by navigating economic cycles effectively.
-    Integrated Risk Management: The fund emphasizes portfolio risk management.
-    Strong Management: It benefits from a management team with solid execution capabilities and a commitment to good governance.

Axis Value Fund stands out due to its value investing approach. It actively seeks companies with strong fundamentals trading at reasonable valuations. This focus allows the fund to identify opportunities, especially during market volatility.

Axis Value Fund helps you find good deals in the market, especially when it is overpriced. It lets you invest in stocks that are undervalued but have potential to grow, especially when the market is low.

As per the fund manager's view, earnings in sectors like banking, industrials, and auto have been largely in line with market estimates. However, the IT sector has faced challenges due to global economic conditions. Axis Value Fund is well-positioned to navigate these market dynamics and identify value stocks. * 
*Current portfolio allocation is based on the current market conditions and is subject to changes depending on the fund manager’s view of the markets. Please refer SID, for detail Asset Allocation & Investment strategy of the Scheme

Unlike traditional value investing that focuses mainly on low valuations (risking “value traps”), Axis Value Fund combines:
•    Valuation discipline: looks for companies trading at reasonable, lower multiples.
•    Fundamentals focus: prefers businesses with strong balance sheets, RoE/cash flow potential, or management turnaround stories.
•    Medium-to-long term outlook: aims to capture wealth creation through sector cycles and earnings re-rating.

To generate consistent long-term capital appreciation by investing predominantly in equity and equity related securities by following value investing strategy. There is no assurance that the investment objective of the Scheme will be achieved.

•    Opportunity to benefit from earnings growth within sectors and economic cycles.
•    Avoids highly leveraged or structurally weak companies.
•    Provides exposure to management turnaround and sector dynamism.
•    Integrated risk management with disciplined portfolio construction.
•    Aims for wealth creation via an alternative, fundamentally driven route.

The fund follows a two-pronged framework:

1. Valuations – Identify companies trading at attractive multiples relative to peers/sectors.
2. Fundamentals – Check for strong balance sheets, RoE, cash flow generation, sector tailwinds, and capable management.

The fund avoids:

•    Highly leveraged businesses.
•    Companies with weak governance or poor fundamentals.
•    “Value traps” — low-valuation companies unlikely to recover due to structural issues.

•    Market dynamics are expected to be influenced by cyclicals, capex-driven segments, and utilities.
•    Valuations are relatively rich, but opportunities remain in mid- and small-cap spaces where earnings growth is visible.
•    Sectors like financials, industrials, B2B companies, and utilities are likely to benefit from India’s growth phase.
•    The fund remains selectively positioned to capture these opportunities while managing risk.

Investors who:
•    Prefer a value-style investment approach but want to avoid traditional pitfalls.
•    Seek exposure to reasonably valued, fundamentally strong businesses.
•    Have a medium- to long-term investment horizon (5 years+).
•    Are comfortable with equity market cycles and short-term volatility.

Equity investments are subject to market risk, volatility, and economic cycles. Value opportunities may take longer to play out, requiring investor patience. The fund’s embedded risk management process aims to mitigate such risks.

Investors should ideally have a medium-to-long term horizon of 5 years or more to potentially benefit from sector cycles, valuation re-rating, and earnings growth.

Yes, SIPs in Axis Value Fund allow investors to gradually build exposure to value opportunities while managing volatility through rupee-cost averaging.

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