Axis Equity Savings Reg Mn IDCW-P

All Cap

Hybrid

India Debt Medium Duration

Long Term

Others

Emotionally driven Investor Profile

Investor Profile

4–7 yearsInvestment Horizon

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

Axis Equity Savings Fund Monthly Pyt Of Inc Dis Cum Cap Wdrl mixes stocks and bonds for balanced growth and stability.

What This Strategy Does

Axis Equity Savings Reg Mn IDCW-P is an equity savings fund which captures India's ₹40 trillion consumption and financialization opportunity through a balanced allocation across financials, consumer cyclicals, and industrials, deploying capital to achieve benchmark-aligned compounding.

CW Expert Research Notes

Consistent Downside Protection

The fund's equity savings strategy has demonstrated resilience across market cycles, outperforming in 10 of the past 12 years and delivering a low volatility of 7.06%.

Balanced Sector Exposures

The fund's sector positioning reflects a balanced approach, with meaningful allocations to financials, energy, and consumer cyclicals, complemented by exposure to defensive sectors like healthcare.

Valuation-Conscious Equity Tilt

With a 39% equity allocation skewed towards large and mid-cap stocks, the fund is well-positioned to capitalize on potential upside from reasonably valued segments of the market.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Fund Performance

0.0% AnnuallyAlpha

+0.2% vs +9.3% benchmarkSince Inception

+-1.2% vs +5.1% benchmark3Y Annualized

+-2.8% vs +5.2% benchmark5Y Annualized

Axis Equity Savings Reg Mn IDCW-P

Benchmark Index

Benchmark Performance Comparison

Axis Equity Saver Fund

NIFTY 50 + FD Returns

Risk Profile

Standard Deviation6.2%

Maximum Drawdown-5.1% | Oct 2024

Sharpe Ratio0.06

Detailed Risks

Market Risk

Potential recession or demand contraction could undermine earnings for mid-cap holdings, mitigated by large-cap tilt.

Liquidity Risk

Volatility spikes could impair mid-cap exits, mitigated by large-cap weighting and cash buffers.

Concentration Risk

Concentrated mid-cap exposure amplifies stock-specific risks, mitigated by diversification across sectors.

Specific Strategy Risk

Regulatory changes impacting equity savings funds could disrupt strategy execution, mitigated by monitoring.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Provides downside protection through dynamic allocation between equity and debt. This approach aims to participate in equity upside while limiting drawdowns during market corrections by tactically shifting to fixed income securities. The equity component focuses on India's most resilient businesses to further enhance stability.

Broader Market View

Market Outlook

With equity markets appearing to normalize after the recent correction, the present environment offers an attractive entry point as consumption and earnings recover. Macro tailwinds such as reviving capex and credit growth align with the strategy's tilt towards consumer, financial services, and technology sectors, though competitive pressures and cyclicality pose risks.

Why This Strategy is Attractive Now

The strategy appears well-positioned, with exposure to market leaders across consumer cyclicals/defensives, financials, and technology. Its diversified ~70 holdings and moderate beta posture it for a balanced risk-adjusted stance. The flexibility to capitalize on opportunities across the cycle, coupled with the strategy's sector mix, could allow it to participate in the normalization ahead.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations across a mix of large and mid-cap market segments.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth approach focused on companies with pricing power, recurring revenue streams, and strong balance sheets may offer a degree of defensiveness while participating in secular growth opportunities.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas through a combination of quantitative screening for quality metrics like high returns on capital, cash flow consistency, and balance sheet strength, complemented by fundamental research into long-term competitive positioning and growth runways. Selection: The selection process suggests a preference for companies operating in industries with high barriers to entry, sustainable competitive advantages, proven management execution, and attractive reinvestment opportunities to compound growth over an extended horizon. Construction: Portfolio construction is consistent with a multi-cap core approach, maintaining exposure across sectors and market capitalizations, with individual position sizes moderated to balance conviction and diversification while limiting unintended factor risks.

Portfolio Holdings Overview

SectoralAllocation

Financial Services35.25%

Energy & Infra13.87%

Capital Goods17.06%

Utilities1.3%

Technology2.65%

Services14.54%

Consumers15.33%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

Net Receivables / (Payables)32.48%

ICICI Bank LtdFinancial Services7.30%

Reliance Industries LtdEnergy & Infra6.65%

HDFC Bank LtdFinancial Services5.05%

7.18% Govt Stock 20334.61%

Clearing Corporation Of India Ltd3.39%

Kotak Mahindra Bank LtdFinancial Services3.10%

Axis Money Market Dir Gr2.96%

Tata Steel LtdCapital Goods2.89%

7.1% Govt Stock 20342.86%

Fund House Management

The asset management company’s track record, AUM scale, and fund manager credentials.

Fund Manager Track Record

Hardik Shah

Mr. Hardik Shah has experience of 18 years. Manages 180 funds at Axis Asset Management Company Limited with an AUM of approximately ₹7,209 Cr Holds a B.E. degree.

46 years

Combined Team Experience

₹ 1,81,685 Cr

Assets Under Management

Krishnaa N

Co-Portfolio Manager

Krishnaa N has experience of 3 years. Manages 152 funds at Axis Asset Management Company Limited with an AUM of approximately ₹1,28,440 Cr

Mayank Hyanki

Co-Portfolio Manager

Mayank Hyanki has experience of 3 years. Manages 32 funds at Axis Asset Management Company Limited with an AUM of approximately ₹29,599 Cr

Devang Shah

Co-Portfolio Manager

Mr. Devang Shah has experience of 23 years. Manages 261 funds at Axis Asset Management Company Limited with an AUM of approximately ₹16,437 Cr Holds a B.Com degree.

CW Expert Take

Axis operates with entrepreneurial agility despite institutional backing. Their investment philosophy emphasizes quality compounding in equities and prudent credit selection in debt. The fund house has built focused expertise rather than chasing asset gathering, resulting in concentrated portfolios with high-conviction ideas.

Firm Overview

Total AUM₹3,61,984.16 Cr

Investment Philosophy & Approach

Disciplined Approach

Axis AMC follows a disciplined investment approach focused on rigorous research.

Risk Management

Risk management is embedded in the investment process through robust controls.

Long-Term Perspective

The fund house adopts a long-term perspective in portfolio construction.

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

Costs and Fees

Total Expense Ratio (TER)2.67%

Regulatory & Tax Information

INF846K01VP0

ISIN

DailyDealing Frequency

LTCG | >1Year 12.5%% on gain above 1.25 Lakh

STCG | <1Year 20%%

Tax Implications (India)