EQUITY - Axis Mutual Fund
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
EQUITY
FEBRUARY 2020
6.3%
-1.7
10.4 %
%
Nifty 50 - Last 5 years Nifty 50 - Last 1 year Nifty 50 - MTD
(CAGR) (Absolute) (Absolute)
QUICK TAKE
Equity market valuations are broadly reasonable We remain bullish on equities Investors are suggested to have their
adjusted for the cyclical low in earnings and from a medium to long term asset allocation plan based on one’s risk
potential for revival going forward. perspective. appetite and future goals in life.
KEY HIGHLIGHTS
MARKETS The first month of the new decade started off with a bang as global US$58/barrel while the India crude basket followed suit and ended
sentiment was high on account of the US China trade deal and the the month at US$58/barrel.
conclusion of Brexit. Domestic markets followed suit for the first half The Corona Virus outbreak in China is likely to have a significant on
off the month and then lost steam in the run up to the budget. The global demand and trade. The timing of the outbreak, during the high
S&P BSE Sensex Index and NIFTY 50 Index fell 1.3% and 1.7% in mobility period of the Chinese New Year has led the widespread
January while BSE Midcap and BSE Smallcap indices gained 3.3% and contagion concerns. In India, the government remains on high alert.
7.1%. The economic impact on India will be tough to quantify and we will
The budget saw a tepid reaction by the market as the budget did not await clarity on the matter as information becomes available.
meet many of the market’s expectations However, one must look at The budget was largely a non-event in our eyes. Despite short term
CORPORATE the budget in the context of the current economic conundrum. With market volatility, the market seems to have taken the news in its
an eye on the broad economy, the budget speech addressed a cross stride and moved on. The focus of our portfolio continues to remain
section of issues aimed at the long term economic recovery. While on earnings growth. We are currently in the midst of earnings
we await certain clarifications on the budget with regards to season. Early indications point to healthy growth across our key
personal taxation, first signs indicate that the budget aims to steady portfolio holdings. This is despite the tough macro environment.
the economy. We believe 2020 will be a year of evolution. Companies that survive
The limited fiscal slippage approach adopted by the government (as the onslaught of the transition are likely to come out stronger, leaner
and better suited to meet the challenges of the new decade. Gazing
opposed to certain demands for a big stimulus) aims to balance
into 2020, we believe most hits of 2019 are likely to sustain while
growth concerns without affecting market and debt obligations. The
GLOBAL misses of 2019 could subside. We will look to play the ‘Survival of the
key takeaway was the budget was largely a non-event and investors
Fittest’ theme in the coming year.
should look to go back to investing roots and focus on the steady
Midcaps & Small caps like their large cap peers have seen leaders and
improvement in the economy likely over the next couple of years.
laggards based on their ability to recover from the tough times in the
Retail Inflation in India continued its sharp upward trajectory. CPI
last 2 years. We have seen several companies re-engineering the way
inflation stood at 7.35% in December compared to 5.54% in they do business and such companies have become favourites of the
November 2019. The jump was largely driven by food and vegetable stock market. The stark outperformance last month highlights
prices due to seasonal factors. Core CPI continues to remain stable Investors are advised to look at actively managed strategies to
and well within the RBI range of 4%. Brent crude ended the month at benefit from opportunities in this space.AXIS BLUECHIP FUND Top 10 Stocks (By Holding) %
(as on 31st January 2020)
• The fund focuses on delivering superior risk adjusted returns. The fund manager HDFC Bank Limited 9.2
targets out-performance to the benchmark while delivering risk that is lower than
the benchmark.
• Stocks are selected in the portfolio based on their ability to grow earnings on a Bajaj Finance Limited 8.4
sustainable basis from a medium term perspective while maintaining a highly liquid
and risk managed portfolio. The expected earnings growth of the portfolio is higher
than that of the benchmark NIFTY 50 TRI. Kotak Mahindra Bank Limited 8.0
• The strategy is to invest mainly in companies which operate in a secular growth
segment and has leading market share in their areas of operation to provide steady
returns and the remaining in companies that are gaining markets share due to ICICI Bank Limited 7.9
differentiated offering or cost advantage, in large sectors expected to deliver alpha.
• The portfolio retains a distinct large cap bias with current mid-cap exposure limited
to around 20%. For its midcap allocations, the portfolio looks to keep a high hurdle in Avenue Supermarts Limited 6.0
terms of quality and growth potential.
Top 5 Sectors (as on 31st January 2020) Housing Development Finance 5.9
Corporation Limited
44.5%
19.5%
9.5% Infosys Limited 5.6
3.5%
3.3%
Asian Paints Limited 4.2
Finance Consumer Information Autos & Oil & Gas Bajaj Finserv Limited 3.7
Technology Logistics
Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the Hindustan Unilever Limited 3.5
fund manager’s view of the equity markets.
AXIS LONG TERM EQUITY FUND Top 10 Stocks (By Holding)
(as on 31st January 2020)
%
(An open-ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit)
• The fund is focused on quality companies having strong long term earnings growth Bajaj Finance Limited 9.0
prospects. Thus the fund maintains a stable core portfolio with relatively low churn.
Within that objective, the fund is comfortable looking past shorter term volatility in
performance. Kotak Mahindra Bank Limited 8.7
• With a medium to long term view towards capturing growth, the fund is biased
towards stocks which can deliver superior returns. This includes private sector banks Avenue Supermarts Limited 7.2
and NBFCs, autos and ancillary, housing & consumption sectors.
• Normally, the fund has avoided highly cyclical stories and highly regulated sectors.
The fund looks at opportunities across the market cap and the portfolio remains HDFC Bank Limited 6.8
balanced between its large and mid-cap allocations.
Pidilite Industries Limited 5.6
Tata Consultancy Services Limited 5.6
Top 5 Sectors (as on 31st January 2020)
40.1% Housing Development Finance 5.5
21.4% Corporation Limited
12.2%
9.3%
3.9% Info Edge (India) Limited 5.5
Maruti Suzuki India Limited 5.1
Finance Consumer Information Autos & Capital Goods,
Technology Logistics Eng. &
Construction Bandhan Bank Limited 4.8
Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the
fund manager’s view of the equity markets.AXIS MIDCAP FUND Top 10 Stocks (By Holding) %
(as on 31st January 2020)
• The fund focuses on investing in bottom-up stocks that provide potential to grow Avenue Supermarts Limited 5.0
cash flows over the medium term. The portfolio seeks to add businesses with
economic moats and distinct competitive advantage.
Bata India Limited 4.4
• The fund remains true-to-label in its portfolio allocations with a diversified and risk-
managed mid-cap portfolio which has a superior liquidity profile.
City Union Bank Limited 4.4
Astral Poly Technik Limited 3.9
Info Edge (India) Limited 3.7
Top 5 Sectors (as on 31st January 2020) Indraprastha Gas Limited 3.7
21.9% Voltas Limited 3.6
19.6%
11.7%
7.0% Bajaj Finance Limited 3.5
6.3%
PI Industries Limited 3.4
Finance Consumer Capital Goods, Information Healthcare
Eng. & Construction Technology
IPCA Laboratories Limited 3.0
Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the
fund manager’s view of the equity markets.
AXIS FOCUSED 25 FUND Top 10 Stocks (By Holding) %
(as on 31st January 2020)
• The fund manager runs a high conviction portfolio, containing the fund manager’s Bajaj Finance Limited 8.6
best ideas and invests in up to 25 stocks while ensuring reasonable diversification
and focus on quality and risk management.
Kotak Mahindra Bank Limited 8.5
• The fund manager looks at 3 broad buckets while constructing the portfolio. The core
portfolio consists of steady compounders that can generate reasonable returns with
low volatility. 2 other buckets consist of companies having a cyclical tailwind and Bajaj Finserv Limited 8.2
emerging themes with high growth potential.
Avenue Supermarts Limited 7.0
Housing Development Finance 5.7
Corporation Limited
Top 5 Sectors (as on 31st January 2020)
Supreme Industries Limited 5.1
41.2%
16.6%
10.1%
Info Edge (India) Limited 5.1
8.0%
6.7%
HDFC Bank Limited 5.0
Finance Consumer Information Capital Goods, Autos &
Techanology Eng. & Logistics Tata Consultancy Services Limited 5.0
Construction
Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the
fund manager’s view of the equity markets. Pidilite Industries Limited 5.0AXIS MULTICAP FUND Top 10 Stocks (By Holding) %
(as on 31st January 2020)
• Good ideas can do better irrespective of its sector/theme/size. Bajaj Finance Limited 8.9
• Axis Multicap Fund seeks to invest across the market cap spectrum in high conviction
ideas with improved risk- adjusted return characteristics. The fund manager looks
for stocks that are expected to report faster growth relative to the benchmark. HDFC Bank Limited 8.4
• The fund as such is sector agnostic and focuses on a bottom up approach to invest in
stocks that are at an inflection point such as market share gain, industry Kotak Mahindra Bank Limited 8.0
consolidation, sunrise industries, improved management focus and capital allocation
or regulatory & policy changes.
ICICI Bank Limited 8.0
Avenue Supermarts Limited 6.6
Top 5 Sectors (as on 31st January 2020) Housing Development Finance 5.1
Corporation Limited
43.1%
21.4%
8.1%
Infosys Limited 4.5
4.7%
3.0%
Asian Paints Limited 4.2
Finance Consumer Information Autos & Diversified
Maruti Suzuki India Limited 3.5
Techanology Logistics
Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the Nestle India Limited 3.5
fund manager’s view of the equity markets.
AXIS SMALL CAP FUND Top 10 Stocks (By Holding) %
(as on 31st January 2020)
• Axis Smallcap fund aims to invest primarily in high conviction small cap stocks. The Mas Financial Services Limited 5.8
bottom up approach to investing seeks to identify long term businesses keeping in
mind risk and reward by containing mistakes and navigating volatile stock
movements. City Union Bank Limited 5.6
• Investing in small caps is not for the faint hearted. Key to successful investing is
Galaxy Surfactants Limited 5.1
patience and ability to withstand short term volatility. Furthermore, smallcaps are a
broader universe as compared to large & midcaps and hence the need for active
management keeping in mind the opportunities in this space come with higher Can Fin Homes Limited 5.0
degree of risk as compared to their larger counterparts.
Aarti Industries Limited 4.9
Top 5 Sectors (as on 31st January 2020) JK Cement Limited 4.3
21.2%
Chalet Hotels Limited 4.0
12.7%
10.5%
10.4%
9.7% Fine Organic Industries Limited 4.0
NIIT Technologies Limited 3.2
Finance Capital Goods, Eng. Cement & Building Agro Inputs Consumer
& Construction Materials & Chemical
JK Lakshmi Cement Limited 3.2
Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets.AXIS GROWTH OPPORTUNITIES FUND Top 10 Stocks (By Holding) %
(as on 31st January 2020)
• Diversification is key to long term portfolio management. Indian equities currently Bajaj Finance Limited 7.7
account for just 3% of the total global market cap of the world. Axis Growth
Opportunities Fund offers investors a unique opportunity to take exposure of global
equities through a structured allocation by way of an open ended mutual fund. Torrent Power Limited 5.9
• The fund aims to invest 70% in domestic equities through a bottom up approach
while the rest will be invested in global large caps. Overall the fund will maintain a
compact portfolio of high conviction domestic and international companies hence Sundaram Finance Limited 5.6
offering investors a tax efficient yet unique investment proposition for portfolio
diversification.
Info Edge (India) Limited 5.4
PI Industries Limited 4.8
Top 5 Sectors (as on 31st January 2020) Kotak Mahindra Bank Limited 4.5
35.7% Bandhan Bank Limited 4.5
14.4%
14.0%
11.0% Supreme Industries Limited 4.3
6.1%
Housing Development Finance 4.0
Corporation Limited
Finance Consumer Information Capital Goods, Agro Inputs
Techanology Eng.& Construction & Chemical
Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the Avenue Supermarts Limited 4.0
fund manager’s view of the equity markets.Riskometer Riskometer
AXIS BLUECHIP FUND AXIS LONG TERM EQUITY FUND
(An open-ended equity scheme predominantly ly Moderate
M
od
(An open-ended equity linked saving scheme with ly Moderate
M
od
investing in large cap stocks) te e a statutory lock in of 3 years and tax benefit) te e
e ra Hi rat e ra Hi rat
This product is suitable for investors who are od Low gh ely This product is suitable for investors who are od Low gh ely
M M
seeking*: seeking*:
• Capital appreciation over long term. • Capital appreciation & generating income
High
High
over long term.
Low
Low
• Investment in a diversified portfolio
predominantly consisting of equity and • Investment in a diversified portfolio
equity related instruments of large cap predominantly consisting of equity and
companies. LOW HIGH equity related instruments. LOW HIGH
*Investors should consult their financial advisers if in Investors understand that their principal will be *Investors should consult their financial advisers if in Investors understand that their principal will be
doubt about whether the product is suitable for them. doubt about whether the product is suitable for them.
at moderately high risk at moderately high risk
Riskometer Riskometer
AXIS MIDCAP FUND AXIS FOCUSED 25 FUND
(An open-ended equity scheme predominantly ly Moderate
M
od
(An open-ended equity scheme investing in ly Moderate
M
od
investing in mid cap stocks) te e maximum 25 stocks investing in large cap, mid te e
e ra Hi rat e ra Hi rat
This product is suitable for investors who are od Low gh ely cap and small cap companies) od Low gh ely
M M
seeking*: This product is suitable for investors who are
• Capital appreciation over long term. seeking*:
High
High
Low
Low
• Investing predominantly in equity & equity • Capital appreciation over long term.
related instruments of mid cap companies. • Investment in a concentrated portfolio of
*Investors should consult their financial advisers if in equity & equity related instruments of up to
doubt about whether the product is suitable for them. LOW HIGH 25 companies. LOW HIGH
Investors understand that their principal will be *Investors should consult their financial advisers if in Investors understand that their principal will be
at moderately high risk doubt about whether the product is suitable for them. at moderately high risk
Riskometer Riskometer
AXIS MULTICAP FUND AXIS GROWTH
(An open-ended equity scheme investing
te
ly Moderate
M
od OPPORTUNITIES FUND (An Open- ely Moderate
M
od
across large cap, mid cap, small cap stocks) ra e ended Equity Scheme investing in both large cap at e
e Hi rat er Hi rat
This product is suitable for investors who are od Low gh ely and mid cap stocks) od w gh ely
M M Lo
seeking*: This product is suitable for investors who are
• Capital appreciation over medium to long seeking*:
High
High
Low
Low
term. • Capital appreciation over long term.
• Investment in a diversified portfolio • Investment in a diversified portfolio
consisting of equity and equity related predominantly consisting of equity and
instruments across market capitalization. LOW HIGH equity related instruments both in India as LOW HIGH
well as overseas.
*Investors should consult their financial advisers if in Investors understand that their principal will be Investors understand that their principal will be
doubt about whether the product is suitable for them. *Investors should consult their financial advisers if in
at moderately high risk doubt about whether the product is suitable for them. at moderately high risk
Riskometer
AXIS SMALL CAP FUND
(An open ended equity scheme predominantly ly Moderate
M
od
investing in small cap stocks) te e
e ra Hi rat
This product is suitable for investors who are od Low gh ely
M
seeking*:
• Capital appreciation over long term.
High
Low
• Investment in a diversified portfolio
predominantly consisting of equity and
equity related instruments of small cap
companies. LOW HIGH
*Investors should consult their financial advisers if in Investors understand that their principal will be
doubt about whether the product is suitable for them. at moderately high risk
Axis MF
IFA
CONNECT
Toll Free Axis MF IFA CONNECT
EasyInvest 1800 221322 Easy SMS An app that goes beyond transactions Risk
http://online.axismf.com SMS HELP to 92120 10033
Additional Contact No. Download the app or Managed
Invest online without 8108622211 Transact and get folio
any prior registration details on the go
visit the web portal Products
(https://ifaconnect.axismf.com)
Data as on 31st January 2020. Source of data: Bloomberg, ACEMF
Disclaimer: Past performance may or may not be sustained in the future. Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the
portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may not choose to hold the stock mentioned, from time to
time. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). This document should not be construed as
research report.
Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to ` 1 Lakh).
Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC) Risk Factors: Axis Bank Limited is not liable or responsible
for any loss or shortfall resulting from the operation of the scheme.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.You can also read
