AXIS Equity Mutual Fund offers 19 different types of mutual fund schemes under the category of equity mutual funds. As on March 2023, the total AUM belonging to these AXIS AMC schemes is Rs 241,015 crores. AXIS Equity schemes include bluechip funds, mid-cap, small-cap, opportunities funds, flexi-cap, index funds and so on.
Equity funds provided by Axis mutual funds are suitable for investors who understand the risk and volatility associated with equity markets. This fund is suitable for investors willing to focus on long-term capital appreciation. Also, staying invested in equities can help them avoid market volatility in the short term. Therefore, Axis Equity Mutual Fund is suitable for a minimum investment duration of 5-7 years. However, before investing, investors must identify the investment objective of any Axis Equity Mutual Fund. Moreover, Axis Equity schemes are ideal for investment objectives of child education, retirement planning, buying a dream house, etc.
Things To Consider Before Investing in Axis Equity Mutual Fund
Investment Objective: Axis Equity Funds aim to achieve long-term appreciation and wealth creation for its investors by investing in equity and equity related securities. To achieve this objective, Axis Equity Fund invests in company stocks with different market capitalisation’s across diverse sectors and industries. Therefore, aligning the investment objective with the fund objective helps to create wealth during the period.
Investment Strategy: The Fund Manager(s) invests in various stocks across market cap as mentioned by SEBI/AMFI, depending on the type of Axis equity fund. Axis equity mutual fund schemes aim to add the finest opportunities that the market has to offer. The scheme objective is to have a disciplined yet flexible long-term strategy with the goal of long-term capital appreciation. Also, Axis AMC uses a bottom-up or top-down approach to pick stocks with strong growth potential. Hence, it is essential to align investors’ financial goals with fund strategy.
Associated Risk: Axis Equity Mutual funds may be affected by the different associated market factors like price/volume in capital markets, interest rates, changes in government policies, etc. Also, Axis Equity Funds are sensitive to changes in the values of the securities they invest in, which might have a significant impact on their overall results. Therefore, Axis Equity Fund managers take an active part in the active management of the portfolio to reduce risk and achieve its investment objectives. Furthermore, investors must understand the risk associated with Axis Equity Mutual Funds before investing in them.
Tax on Axis Equity Mutual Fund
An income arising from the sale of Axis Equity Fund schemes generates a capital gain. Capital gain on Axis Equity Mutual Fund is taxable depending on the holding period. The following table shows the taxation of Axis Equity Mutual Funds –
Short Term Capital Gains (STCG)
Long Term Capital Gains (LTCG)
Holding Period
If holding period is less than 12 months
If holding period is more than 12 months
Taxation
Capital gains are taxable at 15% flat in investor’s hands irrespective of the income tax slab rate.
Capital gains up to Rs. 1 lakh is exempted. Above Rs. 1 lakh is taxable at the rate of 10%
