As the world is constantly a part of continuous change and growth, we can see the shift in the mindset of the investors. They consistently search for ways and means to create money and experience steady development. It is a well-known fact that to create a balanced and diverse investment portfolio, an investor must understand and invest in large-cap mutual funds because of their track record of reliable returns. Axis Bank Mutual Fund has become one of the top investment choices for investors.
Large-cap mutual funds are equity funds that primarily invest in the top 100 companies in the country. Many Indians use the products of some of the most reputable businesses in the country every day. These businesses, therefore, hold a substantial market share. Moreover, the majority of the corpus of these funds is invested in large-cap firms. Companies that have at least a market capitalization of Rs. 20,000 crore are classified as large-cap stocks. Unfortunately, large-cap funds are also susceptible to market risks. So, they must, therefore, take into account the variables that could affect their investments and profits. Before making a decision, one should contemplate many factors, including the investor’s years of age, goals, associated risks, and investment horizons.
Large-cap funds have certain features that should be considered before investing in them. The NAV (Net Asset Value) is affected by market swings like any other stock. Despite the swings, they might not be as significant as those in mid- and small-cap funds. Consequently, stabilizing your portfolio can be achieved by investing in the top large-cap mutual funds. For maximum returns, it is preferable to search for fund houses with a lower expense ratio. However, expense ratio shouldn’t be the sole determining element. Additionally, large-cap mutual funds yield better returns compared to short-term debt funds making them suitable for investors who are in for long-term investments. Large-cap funds provide better stability and a steady income because they have a larger market share and are generally less volatile. Investors can minimize losses in stormy markets by quickly liquidating their assets. Fund managers can also increase their returns by purchasing and selling stocks as needed.
Axis Mutual Fund, established in October 2009, is the third largest private sector bank in the country, with a customer base from Large and Mid-corporates, SME, Agriculture, and Retail Businesses. As of February 28, 2023, Axis Mutual Fund’s AUM stood at ₹2,41,455 crore. Axis MF has over 1.26 crore active investor accounts and is present in over 100 cities. The product portfolio of Axis Asset Management Company Ltd. has over 67 schemes. The AMC has 31 investment teams operating across 19 nations, including Europe, the Middle East, America, and Asia. Axis Bank and Schroder Singapore Holdings Private Limited (SSHPL) jointly operate the Axis Mutual Fund. Axis Bank owns 74.99% of Axis MF, with the remaining 24% being held by Schroder Singapore Holdings Private Limited. The aggregate value (AUM) of Axis Mutual Fund was ₹2,41,455 crore as of February 28, 2023. Axis MF is available in more than 100 locations and has more than 1.26 crore active investor accounts.
To conclude, Axis Bank Mutual Fund is undoubtedly one of the best large-cap mutual funds to invest in for the next five years due to the sheer commitment and growth they have shown in recent years.