Axis Midcap Fund: Is It Worth Your Investment?

The Axis Midcap Fund is a mutual fund scheme that has been in existence for over a decade, seeking to achieve long-term capital appreciation by investing in equity and equity-related instruments of mid-cap companies. With a minimum investment period of 3-7 years, this fund offers higher returns than fixed-income options but comes with more severe ups and downs. As of September 30, 2024, the fund had an expense ratio of 1.56%-1.57% and assets under management (AUM) worth ₹31,321.578904-₹32,016 crores. The fund has delivered average annual returns of 17.68%-21.09% since its inception and is suitable for investors seeking high returns with a medium to high-risk appetite.

Axis Midcap Fund's performance and returns

The Axis Midcap Fund has delivered average annual returns of 17.68% since its inception 12 years ago. As of 28 July 2023, the fund had an AUM of ₹21,780 crore. The fund's trailing returns over different times are 44.87% (1 year), 15.85% (3 years), 24.21% (5 years), and 46.41% (last year). The average annual return of this fund stands at 44.87%. Since its launch, it has delivered average annual returns of 21.09%. The fund has doubled the money invested in it every 3 years.

The fund has a majority of its money invested in the top 5 sectors such as Capital Goods, Financial, Automobile, Services, and Healthcare. The fund's top 5 holdings are in Cholamandalam Investment and Finance Company Ltd., Cummins India Ltd., Trent Ltd., Supreme Industries Ltd., and The Indian Hotels Company Ltd.

The fund's portfolio is largely conservative, with most of its holdings in Large Cap stocks and debt instruments. As of 30 June 2023, the fund had invested 90.47% in Equity, 9.51% in Debt, and 0.02% in Cash and Cash Equivalents.

The expense ratio of the fund is 1.61%, and the minimum SIP amount is ₹100. The fund has no lock-in period.

Axis Midcap Fund's risk and volatility

The Axis Midcap Fund is a mutual fund that has been in existence for over 11 years, investing predominantly in equity and equity-related instruments of medium-sized companies. The fund has no lock-in period and is suitable for investors with a minimum investment horizon of 5-7 years.

Risk and Volatility

Axis Midcap Fund has been categorised as having a "Very High" risk level by SEBI's Riskometer. The fund's performance on the Downside Protection Measure metric has been rated as "Neutral". The fund has a Standard Deviation (3yr) value, which indicates how volatile the fund's returns have been over the past 3 years. A lower value indicates more predictable performance. The fund's Standard Deviation value is lower than that of its peers, suggesting that it offers more predictable performance compared to similar funds.

The Beta value of the fund, which indicates how volatile the fund's performance has been compared to similar funds in the market, is lower than that of its peers. This implies that the fund offers more predictable performance relative to similar funds.

The fund's Sharpe ratio, which measures the amount of risk taken to generate returns, is higher than that of its peers. This indicates that the fund has been able to generate better risk-adjusted returns relative to other funds.

The Treynor's ratio of the fund, which measures the excess return generated for each unit of risk taken, is higher than that of its peers. This suggests that the fund has been able to provide better risk-adjusted returns compared to similar funds.

The fund's Alpha, which measures how the fund generated additional returns compared to a benchmark, is better than that of its peers.

Overall, while the Axis Midcap Fund is considered to have a "Very High" risk level, its performance on various risk and volatility metrics indicates that it offers more predictable performance and better risk-adjusted returns compared to similar funds.

Axis Midcap Fund's investment strategy

Axis Midcap Fund is a Mid Cap mutual fund scheme from Axis Mutual Fund that was launched on 18 February 2011. The fund has been in existence for 11 years and 9 months, having been launched on 1 January 2013. The investment objective of the fund is to "achieve long-term capital appreciation by investing predominantly in equity and equity-related instruments of Mid Cap companies".

The fund has delivered average annual returns of 21.09% since its inception and has doubled the money invested in it every three years. The fund's ability to deliver returns consistently is in line with most funds in its category. Its ability to control losses in a falling market is average. The fund has a majority of its money invested in Financial, Capital Goods, Services, Automobile, and Healthcare sectors.

The fund's top holdings are in Cholamandalam Investment and Finance Company Ltd., Supreme Industries Ltd., The Indian Hotels Company Ltd., Persistent Systems Ltd., and Fortis Healthcare Ltd. The fund's portfolio is largely conservative, with holdings mostly in Large Cap stocks and debt instruments. The fund has a very high risk according to SEBI's Riskometer.

The minimum SIP amount for Axis Midcap Fund is ₹100 and you can increase this in multiples of ₹100. In case you want to invest a lump sum, the minimum amount to be invested is ₹5,000. The fund is meant for investors with a minimum investment horizon of 5-7 years. Due to the asset class nature, expect volatility in your investments over the short term. The fund is benchmarked against the BSE 150 MidCap Total Return Index.

Axis Midcap Fund's asset allocation

Axis Midcap Fund is a Mid Cap mutual fund scheme from Axis Mutual Fund that aims 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 11 years, launching on 18 February 2011, and has delivered average annual returns of 21.09% since its inception.

As of 30 September 2024, the asset allocation of the Axis Midcap Fund was as follows:

• 98.01% in equities
• 1.21% in debts
• 0.77% in cash and cash equivalents

The fund's top holdings are in Cholamandalam Investment and Finance Company Ltd., Supreme Industries Ltd., and The Indian Hotels Company Ltd.

The fund's portfolio is largely conservative, with holdings mostly in Large Cap stocks and debt instruments. As of 30 June 2023, the asset allocation was 90.47% in equity, 9.51% in debt, and 0.02% in cash and cash equivalents.

The fund has a very high level of risk, as per SEBI's Riskometer. It is suitable for investors who are looking to invest money 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.

Axis Midcap Fund's tax implications

Axis Midcap Funds Tax Implications

If you sell your Axis Midcap Fund shares after holding them for one year or longer, long-term capital gains tax will apply. The current tax rate is 12.5% if your total long-term capital gains exceed 1.25 lakhs. Any cess or surcharge is not included in this rate. On the other hand, if you sell your shares before holding them for a year, short-term capital gains tax will apply, and the current rate is 20%, excluding any cess or surcharge.

The Axis Midcap Fund is a mutual fund that primarily invests in medium-sized companies, or mid-cap stocks. It is a high-risk fund with a conservative investment strategy, as it mostly holds large-cap stocks and debt instruments. The fund seeks to achieve long-term capital appreciation by investing predominantly in equity and equity-related instruments of mid-cap companies.

The fund has no lock-in period, and you can invest directly through the fund house website or platforms like MF Central and MF Utility. The minimum SIP investment is ₹100. As of 28-Jul-2023, the fund's Net Asset Value (NAV) was ₹75.4700.

Frequently asked questions