Axis Midcap Fund: A Smart Investment Strategy

The Axis Midcap Fund is a mutual fund scheme from Axis Mutual Fund that seeks to achieve long-term capital appreciation by investing predominantly in equity and equity-related instruments of mid-cap companies. The fund has been in existence for over a decade and has delivered average annual returns of around 20% since its inception. It has an expense ratio of around 0.5-1.5%, depending on the plan, and no lock-in period. The fund's NAV as of October 2024 is around 115-132, and its AUM is over ₹30,000 Crore. The fund's portfolio is largely conservative, with holdings mostly in large-cap stocks and debt instruments. It is suitable for investors looking for high returns over a period of at least 3-4 years and who are ready for the possibility of moderate losses.

How to invest in Axis Midcap Fund online

Investing in the Axis Midcap Fund online is a straightforward process. Here is a step-by-step guide:

• Understand the Axis Midcap Fund: Before investing, it is essential to understand the nature of the fund. The Axis Midcap Fund is a mutual fund that primarily invests in equity and equity-related instruments of mid-cap companies. Mid-cap companies are medium-sized companies, and their stocks tend to be more volatile than those of larger companies. This fund offers the potential for higher returns but also carries more risk.
• Evaluate the Risk and Returns: The Axis Midcap Fund has a very high-risk rating. When investing in this fund, you must be prepared for significant ups and downs. The fund has delivered annualised returns higher than the category average over 1 year and 10 years. However, its 3-year and 5-year annualised returns are lower than the category average.
• Determine the Investment Amount: The Axis Midcap Fund offers flexibility in terms of investment amounts. The minimum investment for the first purchase is ₹100, and the minimum for subsequent investments is also ₹100. There is no lock-in period for this fund, so you can redeem your investment at any time. However, keep in mind that mid-cap funds are recommended for long-term investments of at least seven years.
• Choose a Platform: You can invest in the Axis Midcap Fund directly through the website of the fund house, Axis Mutual Fund. Alternatively, you can use online platforms like MF Central or MF Utility. These platforms provide convenient ways to invest in mutual funds.
• Create an Account and Place the Order: Once you have chosen a platform, create an account and follow the instructions to place your investment order. Provide the necessary personal and financial information to complete the process.
• Monitor and Review your Investment: After investing, it is important to periodically review the performance of the fund and ensure it aligns with your investment goals. You can track the fund's performance through the chosen platform or financial websites.

Remember, investing in mutual funds, especially mid-cap funds, involves risk. Carefully consider your investment objectives and risk tolerance before investing. Diversifying your investments across different asset classes and sectors can help manage risk.

How to invest in Axis Midcap Fund offline

To invest in the Axis Midcap Fund offline, you can seek the help of a mutual fund distributor, as most banks also act as mutual fund distributors. You can also purchase the fund through platforms like MF Central and MF Utility.

Before investing, it is important to understand the fund's objective and risks. The Axis Midcap Fund is an open-ended mid-cap equity scheme that aims for long-term capital appreciation by predominantly investing in equity and equity-related instruments of mid-cap companies. The fund has a very high risk level, and investors should be prepared for the possibility of moderate losses. It is suggested that investors hold their investments in the fund for at least 3 years to reduce downside risks and make returns more predictable.

The fund has delivered returns of 45.3% (1-year), 17.6% (3-year), 24.75% (5-year), and 19.47% since its launch. The current Net Asset Value (NAV) is Rs 114.89 as of October 10, 2024, with a minimum investment requirement of Rs 100. The expense ratio is 1.56%, and there is a 1% exit load for units redeemed within 12 months that are in excess of 10% of the investment.

The fund's portfolio is largely conservative, with holdings mostly in large-cap stocks and debt instruments. As of August 31, 2024, the fund's assets under management were worth Rs 31,321.58 crore, and the fund size is Rs 32,015.56 crore as of October 10, 2024.

Remember to carefully consider your investment goals, conduct thorough research, and, if necessary, seek independent financial advice before committing to any investment.

Axis Midcap Fund's investment objective

The Axis Midcap Fund is a mutual fund scheme from Axis Mutual Fund that seeks to achieve long-term capital appreciation by investing predominantly in equity and equity-related instruments of mid-cap companies. Mid-cap companies are those ranked between 100 and 250 by size (market capitalization).

The fund has been in existence for over 11 years, having been launched on 1st January 2013. It has delivered average annual returns of 21.19% since its inception. As of 30th September 2024, the fund has ₹32,016 crores worth of assets under management (AUM) and is considered a medium-sized fund in its category.

The Axis Midcap Fund is suitable for investors who are looking to invest money for at least 3-4 years and are seeking high returns. However, these investors should also be prepared for the possibility of moderate losses in their investments. The fund has a very high-risk rating and is not suitable for those who need to redeem their investment in less than seven years.

The fund has a majority of its investments in the financial, capital goods, services, automobile, and healthcare sectors. It has taken less exposure in the financial and capital goods sectors compared to other funds in the same category. The top holdings of the fund include Cholamandalam Investment and Finance Company Ltd., Supreme Industries Ltd., and The Indian Hotels Company Ltd.

Axis Midcap Fund's expense ratio

The expense ratio of a mutual fund is the annual fee that the fund house charges to manage your investments. It is a percentage of the fund's assets that are used for administrative, management, advertising, and other expenses. The expense ratio is taken from the returns generated by the fund and is not explicitly paid by the investor.

The Axis Midcap Fund has two types of plans: the Regular Plan and the Direct Plan. The expense ratio for the Direct Plan is 0.53%, while the expense ratio for the Regular Plan is 1.56%. The difference in the expense ratios of the two plans is due to the commission paid to the broker or distributor, which is included in the Regular Plan but not in the Direct Plan.

The Axis Midcap Fund's expense ratio is relatively low compared to other funds in its category, making it a cost-effective option for investors. It is important to consider the expense ratio when investing in mutual funds, as a lower expense ratio leads to higher returns for investors.

Axis Midcap Fund's returns

The Axis Midcap Fund is a mutual fund that has been in operation for 12 years and 5 months. It is a scheme that seeks to achieve long-term capital appreciation by predominantly investing in equity and equity-related instruments of mid-cap companies.

The fund's returns are currently better than the category average, delivering 17.68% returns since its inception. As of the 20th of September 2024, the latest Net Asset Value (NAV) was ₹116.77, with a 1.28% change from the previous day. The fund's performance has been below average among its peers. The fund size is ₹31321.58 Cr, which is 8.14% of the investment in its category. The annual fees or expense ratio of the fund is 1.56%, which is lower than the 1.83% category average.

The fund has a very high-risk level and is suitable for investors who are looking to invest for at least 3-4 years and are seeking high returns. These investors should also be prepared for the possibility of moderate losses in their investments. The fund has no lock-in period.

The fund's portfolio is largely conservative, with 97.52% investment in domestic equities, of which 12.01% is in Large Cap stocks, 43.2% in Mid Cap stocks, and 17.69% in Small Cap stocks. The remaining 2.48% of the portfolio is in F&O Holdings, Foreign Equity Holdings, and other investments.

The minimum SIP investment amount for the Axis Midcap Fund is ₹100.

Frequently asked questions