Axis Long Term Equity mutual fund review: Can deliver healthy returns over the long term

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

BASIC FACTS
DATE OF LAUNCH
29 DECEMBER 2009

CATEGORY
EQUITY
TYPE
ELSS
AUM*
Rs.27,628 Crore
BENCHMARK
NIFTY 500 TOTAL
RETURN INDEX

WHAT IT COSTS
NAV**
GROWTH OPTION
Rs.62.43
IDCW
Rs.21.99
MINIMUM INVESTMENT
Rs.500
MINIMUM SIP AMOUNT
Rs.500
EXPENSE RATIO*** (%)
1.61
EXIT LOAD
0%
*AS ON 30 JUNE 2022
**AS ON 19 JULY 2022
***AS ON 30 JUNE 2022

FUND MANAGER
JINESH GOPANI
TENURE: 11 YEARS, 2 MONTHS

Recent portfolio changes
New Entrants: Mahindra & Mahindra, Tube Investments of India, Delhivery, Rainbow Childrens Medicare
Complete Exits: Endurance Technologies, PB Fintech
Increasing allocation: Apollo Hospitals, Astral, Clean Science And Technology, Divi’s Labs, FSN E-Commerce Ventures, M&M, Nestle India, Pidilite Inds, Sundaram Finance, The Indian Hotels Company, Tube Investments of India

Should you buy?
Despite amassing a large corpus, the fund continues to run a very compact portfolio of high conviction ideas. The fund manager is comfortable taking outsized positions in individual bets relative to the index. He picks stocks that fit within a strict quality framework, even if it implies paying a slight premium. While this strategy helped the fund top the charts between 2018-2020, the fund’s performance has visibly deteriorated since as market preferences shifted to suit other styles. The fund may continue to go through a lean phase but has exhibited ability to deliver healthy outcomes over long term across alternating bouts of under- and outperformance.

(Source: Value Research)