Advantages of investing in Axis Focused 25 Fund
There are multiple benefits of investing in Axis Focused 25 Fund:
- Axis Focused 25 Fund is a professionally managed fund: The reasons a lot of investors prefer not to invest in direct equities is because they lack adequate knowledge about the equity market. Hence, they fear to get exposed to the volatility of direct equities. But in the case of mutual fund, it is managed by professionals who holds vast experience in managing funds.
- Axis Focused 25 Fund might help you diversify your mutual fund portfolio: Axis Focused 25 Fund invests in small, mid and large cap company stocks. Because this fund invests in varied proportions in company stocks across all market capitalization, investing in this equity scheme might help you in diversifying your investment portfolio.
- Axis Focused 25 Fund holds the potential capital appreciation: It goes without saying that apart from savings, the reason why investors choose to invest is to seek some kind of capital appreciation. Axis Focused 25 Fund might be one of the funds which might be able to help investors build a corpus over the long term. The reason individuals invest is that they aspire to improve their existing financial condition. Hence, investing in Axis Focused 25 Fund with a long term objective could help achieve capital appreciation.
- No Lock-in: Another promising advantage which this scheme holds is that it is an open ended equity scheme, hence this fund has no lock in period. However, it’s always recommended to stay invested for longer term with an aim to generate capital appreciation on your investment.
- Benefit from Compounding: Long term investment in Axis Focused 25 Fund allows investments to benefit from the power of compounding. To put it in simple words, compounding in mutual funds refers to the returns earned on the interest or profits made on the profits from your investments. Power of compounding may help smaller investments to grow and fetch better returns in the long run. So, if investors choose to stay invested for longer period of time, they might get more benefit from compounding.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.