Axis Midcap Fund

Diversified

Equity

India Growth

Mid Cap

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 Midcap Fund Growth invests in mid-size Indian companies, balancing growth and risk.

What This Strategy Does

Axis Midcap Gr is an equity mid-cap fund which captures India's ₹20 trillion mid-cap opportunity through a bottom-up, growth-at-reasonable-price approach, deploying capital across industrials, consumer cyclicals, and financials to achieve broad-based earnings growth.

CW Expert Research Notes

Consistent Outperformance

The fund has demonstrated resilient benchmark-relative behavior, outperforming in 8 out of the past 12 years, highlighting its ability to deliver consistent outcomes across market cycles.

Differentiated Construction

The fund's bottom-up stock selection process, focused on relative growth and quality, results in a distinct portfolio construction compared to peers, with a bias towards business-to-consumer companies and selective exposure to business-to-business names.

Defensive Characteristics

The fund's emphasis on quality and growth attributes positions it favorably to navigate potential earnings downgrades or market corrections, providing downside protection while participating in structural growth trends.

Performance and Risk Analysis

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

Fund Performance

-1.7% AnnuallyAlpha

+15.9% vs +9.9% benchmarkSince Inception

+15.0% vs +6.3% benchmark3Y Annualized

+12.3% vs +6.5% benchmark5Y Annualized

Axis Midcap Fund

Benchmark Index

Benchmark Performance Comparison

Axis Mid Cap Fund

NIFTY 50

Risk Profile

Standard Deviation17.8%

Maximum Drawdown-19.2% | Oct 2024

Sharpe Ratio0.08

Beta0.86

Upside Capture80%

Detailed Risks

Market Risk

Potential recession triggered by high inflation could dampen consumer demand, impacting mid-cap growth stocks disproportionately, though mid-cap tilt mitigates downside.

Liquidity Risk

Volatility spikes or redemptions could strain liquidity for concentrated mid-cap holdings, though large-cap allocation provides a buffer for rebalancing.

Concentration Risk

Concentrated mid-cap exposure (426% of benchmark) amplifies idiosyncratic risks like earnings misses or competitive threats, though diversification limits single-stock impact.

Specific Strategy Risk

Regulatory changes affecting key sectors or unfavorable tax policies could disproportionately impact mid-cap growth strategy, though rigorous monitoring mitigates surprises.

Strategy Details

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

Core Investment Theme

Provides exposure to India's entrepreneurial energy before institutional capital discovers it. Mid-caps offer the highest growth potential but demand patience through volatility cycles. The long-term impact is dramatic wealth creation—historical data shows sustained mid-cap investing has generated life-changing returns, but requires conviction to stay invested through sharp drawdowns. Suitable for investors seeking outsized growth with the fortitude to withstand elevated risk.

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 seems well-positioned, with exposure to market leaders across consumer cyclicals/defensives, financials, and technology. Its diversification across roughly 70 holdings, balanced between growth and stability, coupled with moderate beta and flexibility, appears conducive to risk-adjusted participation as the cycle matures.

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 growth prospects.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth approach can provide exposure to companies with resilient business models, pricing power, and the ability to compound earnings through cycles.

High-Level Investment Process

Sourcing: The strategy appears to seek companies with sustainable competitive advantages, strong balance sheets, and attractive growth runways, sourced through fundamental research and industry expertise. Selection: The selection process suggests a preference for businesses with durable pricing power, high returns on capital, and the ability to reinvest cash flows at attractive rates, while maintaining valuation discipline. Construction: Portfolio construction is consistent with a focus on risk management through diversification across sectors and market capitalizations, while allowing high-conviction ideas to emerge as significant holdings.

Portfolio Holdings Overview

SectoralAllocation

Financial Services21.64%

Technology6.92%

Energy & Infra3.77%

Services14.39%

Consumers21.28%

Utilities1.85%

Capital Goods30.14%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

Clearing Corporation Of India LtdUtilities8.78%

Nifty May 2026 FutureUtilities5.64%

The Federal Bank LtdFinancial Services3.87%

Fortis Healthcare LtdServices3.56%

Multi Commodity Exchange of India LtdFinancial Services3.43%

GE Vernova T&D India LtdCapital Goods2.59%

Schaeffler India LtdConsumers2.25%

BSE LtdFinancial Services2.14%

Indian Hotels Co LtdConsumers2.03%

Phoenix Mills LtdEnergy & Infra1.96%

Fund House Management

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

Fund Manager Track Record

Shreyash Devalkar

Mr. Shreyash Devalkar has experience of 18 years. Manages 36 funds at Axis Asset Management Company Limited with an AUM of approximately ₹1,15,152 Cr Holds a MMS degree.

31 years

Combined Team Experience

₹ 2,76,682 Cr

Assets Under Management

Nitin Arora

Co-Portfolio Manager

Nitin Arora has experience of 11 years. Manages 45 funds at Axis Asset Management Company Limited with an AUM of approximately ₹33,089 Cr

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

Quality-Growth Focus

Employs filters to assess businesses based on growth and quality relative to peers.

Disciplined Approach

Favors companies prioritizing minority shareholders' interests and stakeholders' interests.

Long-Term Mindset

Constructs portfolio with three- to five-year perspective on stocks.

Operational & Regulatory Details

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

Costs and Fees

Total Expense Ratio (TER)1.57%

Exit Load1

Regulatory & Tax Information

INF846K01859

ISIN

DailyDealing Frequency

Nifty Midcap 150 TR INRBenchmark

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

STCG | <1Year 20%%

Tax Implications (India)