Axis Mutual Fund’s Axis Small Cap Fund Direct Growth is a small-cap equity mutual fund product. Shreyash Devalkar is in charge of managing it, and it was introduced on November 11th, 2013. As of September 2023, the fund’s asset under management (AUM) totaled 15,847 crores.
Investors with a high tolerance for risk and an investment horizon of at least five years should choose the Axis Small Cap Fund Direct Growth. Over most timeframes, the fund has outperformed its benchmark, the NIFTY Smallcap 250 Total Return Index. Investors should be prepared for short-term swings in the fund’s NAV, nevertheless, as small-cap companies are more volatile than large-cap stocks.
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Axis small cap fund direct growth key features
- Investment Goal: To produce long-term capital growth by purchasing a diverse array of small-cap equities.
- Investment strategy: The fund management selects and invests in small-cap firms with solid fundamentals and significant room for growth. This strategy is known as a bottom-up approach to investing.
- Performance: Over the majority of timeframes, the fund has outperformed its benchmark, the NIFTY Smallcap 250 Total Return Index. Since its inception, the fund has produced an annualized return of 25.08% versus 19.35% for its benchmark.
- Small-cap equities make up the fund’s broad array of holdings. Narayana Hrudayalaya Ltd., KPIT Technologies Ltd., Tube Investments Of India Ltd., Brigade Enterprises Ltd., and Galaxy Surfactants Ltd. are among the fund’s top 10 holdings as of September 20, 2023.
- Axis Small Cap Fund Direct Growth has an expense ratio of 0.55%. This is less expensive than the roughly 1% average expense ratio of small-cap equity mutual funds.
- The fund is appropriate for investors with a high tolerance for risk and an investment horizon of at least five years.
Why invest in Axis Small Cap Fund Direct Growth?
Axis Mutual Fund’s Axis Small Cap Fund Direct Growth is a small-cap equity mutual fund product. Investors with a high tolerance for risk and an investment horizon of at least five years should consider it. The fund consistently outperforms the NIFTY Smallcap 250 Total Return Index, which serves as its benchmark.
Related: Calculate your investment’s CAGR
You might choose to invest in Axis Small Cap Fund Direct Growth for the following reasons:
- Over the long run, small-cap stocks have the potential to produce high returns. They are also more erratic than large-cap stocks, though. With a diverse portfolio of small-cap equities, the Axis Small Cap Fund Direct Growth can assist to lower risk while increasing the likelihood of achieving significant returns.
- Axis Small Cap Fund Direct Growth has a solid track record, consistently outperforming its benchmark throughout most timeframes. Since its inception, the fund has produced an annualized return of 25.08% versus 19.35% for its benchmark.
- Shreyash Devalkar, a fund manager with more than 15 years of expertise in the financial sector, is in charge of Axis Small Cap Fund Direct Growth. When it comes to managing small-cap equity funds, Devalkar has had success.
- The expense ratio for Axis Small Cap Fund Direct Growth is minimal—0.55%. This implies that a larger portion of your investment will be used to produce returns.
Small-cap stocks are more erratic than large-cap stocks, it is crucial to remember this. As a result, the value of your investment in the Axis Small Cap Fund Direct Growth may see large short-term fluctuations. As a result, you should only invest in this fund if you have a lengthy investing horizon and a strong tolerance for risk.
Risks of investing in Axis Small Cap Fund Direct Growth
Axis Mutual Fund’s Axis Small Cap Fund Direct Growth is a small-cap equity mutual fund product. Investors with a high tolerance for risk and an investment horizon of at least five years should consider it. Before investing in this fund, you should be informed of the hazards, though.
The following are a few dangers associated with investing in Axis Small Cap Fund Direct Growth:
- Market risk is a concern for all equity mutual funds. This implies that your investment’s value may change in step with stock market fluctuations. Due to the higher volatility of small-cap companies compared to large-cap stocks, the value of your investment in the Axis Small Cap Fund Direct Growth may see considerable short-term fluctuations.
- Axis Small Cap Fund Direct Growth invests in a diverse portfolio of small-cap firms, which entails certain company risk. However, there is always a chance that some of the fund’s companies will perform poorly or perhaps fail. Your investment could lose money as a result of this.
- Small-cap stocks have a lower liquidity risk than large-cap equities. As a result, it could be challenging to sell your Axis Small Cap Fund Direct Growth units for a fair price.
- Currency changes could occur if Axis Small Cap Fund Direct Growth invests in overseas stocks. This indicates that variations in the exchange rates of the currencies in which the fund invests could have an impact on the value of your investment.
Before making an investment, it’s critical to understand the risks associated with Axis Small Cap Fund Direct Growth because it is a high-risk fund.
A financial advisor should be consulted if you are thinking about investing in the Axis Small Cap Fund Direct Growth to ascertain whether it is appropriate for your investment objectives and risk tolerance.
Conclusion
Investors with a high tolerance for risk and an investment horizon of at least five years should choose the Axis Small Cap Fund Direct Growth. The fund consistently outperforms the NIFTY Smallcap 250 Total Return Index, which serves as its benchmark. Before investing in this fund, you should be informed of the hazards, though.
Due to the higher volatility of small-cap companies compared to large-cap stocks, the value of your investment in the Axis Small Cap Fund Direct Growth may see considerable short-term fluctuations. Small-cap stocks, however, have the potential to produce high returns over the long run.
If you’re thinking about investing in Axis Small Cap Fund Direct Growth, you should speak with a financial advisor to see if it fits your risk tolerance and investment objectives.
