Axis Bluechip Fund: Fund review
A large part of the portfolio is invested in financials which include private sector banks such as HDFC Bank, ICICI Bank and Kotak Mahindra Bank.
This serves well for conservative investors looking for safer options that deliver returns greater than fixed deposits.
Among schemes that have very high exposure to blue chips and have been consistently beating the benchmark index and peers by a fair margin is Axis Bluechip. The scheme invests close to 87% of its portfolio in bluechip companies. Of these, the top six companies make up 61% of the scheme’s portfolio.
A large part of the portfolio (45%) is invested in financials which include private sector banks such as HDFC Bank, ICICI Bank and Kotak Mahindra Bank. Given their better asset quality and retail focus than PSU banks, this strategy works in generating higher or providing stable returns in the longterm.
This element of spotting companies which have high asset quality is one of the themes of the scheme’s portfolio. And it has paid off. In the past three-year and five-year periods, the scheme has given 12.6% and 11.3% returns, respectively, while its peers have given average returns of 8.4% and 8.7%, respectively, in the same periods.
Portfolio Change (past 6 months)
|New Entrants||Complete Exits||Increase in Allocation|
|Bharti Airtel||Britannia Inds||Larsen & Toubro|
|Gruh Finance||Wipro||Divis Laboratories|
Returns (in %)
|Period||CAGR Return||SIP CAGR Return||Large cap-
AVG CAGR (%)
Returns peer comparison (in %)
|Canara Robeco Bluechip Equity Fund||-1.48||9.17||9.52|
|Edelweiss Large Cap Fund||-4.74||7.95||9.70|
|ICICI Prudential Bluechip Fund||-2.35||8.36||9.72|
Kaustubh Belapurkar, Director Fund Research, Morningstar India
The fund manager Shreyas Devalkar looks to construct a portfolio of high conviction large cap stocks. Across sectors, it is clear Devalkar's focus is on quality of assets. This provides a distinct edge which has helped maintain the scheme's superior performance. Conservative investors looking to invest in a large cap fund and gain from stable returns can opt for this fund.