Axis Focused Fund

All Cap

Diversified

Equity

India Super Value

Others

Aggressive growth Investor Profile

Investor Profile

1–7 yearsInvestment Horizon

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

Axis Focused Fund Growth invests in high-quality Indian companies with strong fundamentals.

What This Strategy Does

Axis Focused Fund Growth is an equity flexi-cap fund which captures India's broad-based earnings growth opportunity through a focused portfolio deploying capital across financials, industrials, and consumer sectors to achieve benchmark-aligned compounding.

CW Expert Research Notes

Earnings Resilience

The fund has demonstrated consistent earnings delivery and downside protection characteristics, outperforming its benchmark in 7 out of the last 12 years.

Differentiated Construction

The fund's portfolio construction reflects a distinct investment approach, with selective overweights in industrials and underweights in technology and energy, expressing conviction in cyclical recovery and structural tailwinds.

Balanced Risk Profile

The fund maintains a balanced risk/reward profile, seeking quality businesses with competitive advantages and growth opportunities while being cognizant of potential catalysts and valuation considerations.

Performance and Risk Analysis

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

Fund Performance

-6.3% AnnuallyAlpha

+9.2% vs +9.9% benchmarkSince Inception

+9.8% vs +6.3% benchmark3Y Annualized

+3.9% vs +6.5% benchmark5Y Annualized

Axis Focused Fund

Benchmark Index

Benchmark Performance Comparison

Axis Focused 25 Fund

NIFTY 50

Risk Profile

Standard Deviation16.8%

Maximum Drawdown-18.0% | Oct 2024

Sharpe Ratio-0.60

Beta0.93

Upside Capture86%

Detailed Risks

Market Risk

Potential recession risks amid slowing global growth could trigger demand contraction, impacting cyclical sectors.

Liquidity Risk

Significant mid-cap exposure could face liquidity stress during volatility spikes, impacting rebalancing.

Concentration Risk

Concentrated sector bets like financials face asset quality risks from rising rates.

Specific Strategy Risk

Regulatory tightening on non-bank lending could pressure fintech/NBFC holdings' growth prospects.

Strategy Details

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

Core Investment Theme

Delivers concentrated exposure to India's highest-quality businesses across market cycles. By investing in a focused portfolio of 20-25 stocks, this approach aims to capture the wealth compounding potential of the nation's most resilient franchises with sustainable competitive advantages and robust governance standards. The impact is lower volatility and downside protection, translating into smoother returns over full market cycles. Suitable for investors seeking risk-managed participation in India's structural growth story.

Broader Market View

Market Outlook

Equity markets appear to be entering a recovery phase following the recent correction, presenting an opportune entry point. Macro tailwinds such as consumption revival, earnings normalization, and capex growth are aligning with the strategy's tilt towards consumer, financial services, and technology sectors. While competitive pressures and cyclicality pose risks, the current backdrop seems conducive.

Why This Strategy is Attractive Now

The strategy's balanced exposure across consumer cyclicals, defensives, financials, and technology appears well-positioned. The portfolio's diversification across around 70 holdings, including market leaders, moderate beta, and flexibility to adapt could allow it to capitalize on the evolving recovery. With this risk-adjusted positioning, the strategy seems differentiated from benchmarks to potentially benefit from multiple return drivers.

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 relative to their long-term potential.

Why it Makes Sense

In the current market environment characterized by economic uncertainty and elevated volatility, a Quality Growth approach focused on companies with strong fundamentals, pricing power, and resilient business models can provide a degree of defensiveness while participating in secular growth opportunities.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas from a broad universe of companies across market capitalizations, with a focus on those demonstrating sustainable competitive advantages, strong profitability, and healthy balance sheets. Selection: The selection process suggests a preference for companies with durable growth drivers, attractive returns on invested capital, and reasonable valuations relative to their long-term earnings potential. Construction: Portfolio construction is consistent with a diversified, conviction-weighted approach, balancing exposure to secular growth themes while managing overall risk through position sizing and sector diversification.

Portfolio Holdings Overview

SectoralAllocation

Energy & Infra2.79%

Utilities4.46%

Consumers17.14%

Technology3.52%

Financial Services33.85%

Capital Goods19.88%

Services18.37%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

Clearing Corporation Of India LtdUtilities7.67%

ICICI Bank LtdFinancial Services7.55%

Eternal LtdConsumers5.93%

Divi's Laboratories LtdServices5.36%

Apollo Hospitals Enterprise LtdServices4.73%

Cholamandalam Investment and Finance Co LtdFinancial Services4.63%

Bharti Airtel LtdServices4.59%

State Bank of IndiaFinancial Services4.56%

Bajaj Finance LtdFinancial Services4.14%

Torrent Power LtdUtilities4.13%

Fund House Management

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

Fund Manager Track Record

Sachin Relekar

Mr. Sachin Relekar has experience of 24 years. Manages 18 funds at Axis Asset Management Company Limited with an AUM of approximately ₹15,690 Cr Holds a MMS degree.

27 years

Combined Team Experience

₹ 1,44,130 Cr

Assets Under Management

Krishnaa N

Co-Portfolio Manager

Krishnaa N has experience of 2 years. Manages 158 funds at Axis Asset Management Company Limited with an AUM of approximately ₹1,28,440 Cr

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 Mutual Fund follows a disciplined investment approach focused on growth and quality.

Rigorous Framework

The fund house employs a rigorous BMV framework for stock selection and portfolio construction.

Risk Management

Axis maintains a strong risk management culture with methodical position sizing and diversification.

Operational & Regulatory Details

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

Costs and Fees

Total Expense Ratio (TER)1.74%

Exit Load1

Regulatory & Tax Information

INF846K01CH7

ISIN

DailyDealing Frequency

BSE 500 India TR INRBenchmark

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

STCG | <1Year 20%%

Tax Implications (India)