In the past five-year and ten-year periods, the scheme has given 6.5% and 9.6% returns, respectively, while its peers have given average returns of 1.6 % and 6.3%, respectively, over the same periods.
Given the pessimism gripping the markets owing to the spread of the Covid-19 (coronavirus) pandemic and the consequent national lockdown, a sensible equity strategy is to invest in schemes that have a high exposure to blue chips or large-cap companies. Their inherent advantages such as a strong balance sheet, brand power and market share help them tide over these conditions better than mid- and small-cap companies, especially when the demand environment is weak.
One equity scheme suitable in the current scenario is Axis Bluechip Fund. The scheme is managed by Shreyas Devalkar, whose top two sectoral bets are banking and financials.
In the past five-year and ten-year periods, the scheme has given 6.5% and 9.6% returns, respectively, while its peers have given average returns of 1.6 % and 6.3%, respectively, over the same periods. More than 95% of the scheme’s portfolio is invested in blue-chip and large-cap companies.
Investors could take exposure to equities through the scheme using the systematic investment plan (SIP) route.
Expert Take
ADVERTISEMENT
Kaustubh Belapurkar, head-fund research, Morningstar India
Shreyas Devalkar invests in companies with sustainable earnings growth potential and credible management and doesn’t mind paying a premium valuation. This focus has helped the fund deliver exceptional returns in a polarised market. Investors can look to add this strategy to their portfolio to complement other growth at reasonable price or value style funds.
