Axis Value Fund – Direct Plan is an open-ended equity mutual fund managed by Axis Mutual Fund, launched on September 22, 2021. It follows a value investing strategy, aiming to generate long-term capital appreciation by investing in undervalued stocks.
Key Details:
- Fund Type: Equity – Value Oriented
- Benchmark: NIFTY 500 Total Return Index
- Fund Size: Approximately ₹742.48 crore as of March 2025
- Expense Ratio: 0.93% (as of February 28, 2025)
- Minimum Investment: ₹100 (lump sum and SIP)
- Exit Load: 1% if redeemed within 12 months for units exceeding 10% of the investment; no exit load after 12 months
Fund Managers of Axis Value Fund
The Axis Value Fund is managed by two experienced fund managers:
Nitin Arora
- Role: Fund Manager at Axis Mutual Fund
- Managing Axis Value Fund Since: May 2023
- Experience: Over a decade in the financial services industry, with a background in equity research and fund management.
- Previous Associations: ICICI Prudential AMC (before joining Axis AMC)
Sachin Relekar
- Role: Senior Fund Manager at Axis Mutual Fund
- Managing Axis Value Fund Since: April 2024
- Experience: Over 20 years in investment management and research.
- Known For: His expertise in value investing and bottom-up stock picking.
- Previous Associations: IDFC Mutual Fund, where he managed several equity schemes successfully.
These fund managers bring a mix of strategic and research-driven approaches, focusing on value investing by identifying fundamentally strong but undervalued companies.
Axis Value Fund Share Price
As of April 17, 2025, the Net Asset Values (NAV) for Axis Value Fund are:
- Direct Plan – Growth Option: ₹18.05
Suitability
This fund is suitable for investors with:
- A long-term investment horizon (preferably more than five years)
- A high risk tolerance
- An interest in value investing strategies
It’s important to note that value-oriented funds can experience periods of underperformance compared to growth-oriented funds, especially in bullish markets.
Taxation
- Long-Term Capital Gains (LTCG): Gains up to ₹1.25 lakh in a financial year are tax-exempt. Gains exceeding this limit are taxed at 12.5%.
- Short-Term Capital Gains (STCG): Gains from units held for less than one year are taxed at 20%.
- Holding Period: No tax is applicable as long as the units are held.
Investor Suitability:
Axis Value Fund is suitable for investors with a long-term investment horizon (preferably more than five years) who are comfortable with market volatility and are looking to invest in undervalued stocks with the potential for capital appreciation.
Conclusion:
Axis Value Fund has delivered impressive returns since its inception, outperforming many peers in the value-oriented equity category.
Its focus on undervalued stocks and consistent fund management make it a compelling choice for long-term investors seeking capital appreciation.
Axis Value Fund Portfolio
As of March 31, 2025, the Axis Value Fund maintains a diversified portfolio with a focus on value investing.
Top 10 Holdings
| Company | Sector | Portfolio Allocation (%) |
|---|---|---|
| HDFC Bank Ltd. | Financial | 7.96% |
| ICICI Bank Ltd. | Financial | 6.42% |
| Reliance Industries Ltd. | Energy | 4.99% |
| Infosys Ltd. | Technology | 3.44% |
| Bharti Airtel Ltd. | Communication | 3.43% |
| NTPC Ltd. | Energy | 2.94% |
| State Bank of India | Financial | 2.80% |
| Larsen & Toubro Ltd. | Construction | 2.40% |
| Sun Pharmaceutical Industries Ltd. | Healthcare | 2.26% |
| Minda Corporation Ltd. | Automobile | 2.05% |
Sector Allocation
| Sector | Allocation (%) |
|---|---|
| Financial | 22.25% |
| Energy | 12.16% |
| Healthcare | 11.92% |
| Automobile | 7.80% |
| Construction | 5.97% |
| Capital Goods | 5.78% |
| Technology | 5.20% |
| Consumer Staples | 3.52% |
| Services | 3.43% |
| Communication | 3.43% |
Asset Allocation
- Equity: 88.38%
- Debt: 11.6%
- Cash & Equivalents: 0.02%
The fund’s strategy emphasizes investing in fundamentally strong companies that are undervalued, aiming for long-term capital appreciation. Its diversified sector allocation helps in mitigating risks associated with market volatility.
Axis Value Fund Returns
Here is a detailed overview of the Axis Value Fund performance across various timeframes, as of November 2024:
Axis Value Fund – Direct Plan
| Period | Absolute Return (%) | Annualized Return (%) |
|---|---|---|
| 1 Year | 37.60% | 37.36% |
| 2 Years | 75.00% | 32.24% |
| 3 Years | 76.17% | 20.75% |
| Since Inception (Sep 2021) | 84.80% | 21.58% |
Axis Value Fund – Regular Plan
| Period | Absolute Return (%) | Annualized Return (%) |
|---|---|---|
| 1 Year | 38.3% | 38.3% |
| 2 Years | 32.3% | 32.3% |
| 3 Years | 19.93% | 19.93% |
| 5 Years | Data not available | – |
| Since Inception (Sep 2021) | 24.17% | 24.17% |
SIP Returns – Axis Value Fund
| SIP Duration | Total Investment (₹) | Latest Value (₹) | Absolute Return (%) | Annualized Return (%) |
|---|---|---|---|---|
| 1 Year | 12,000 | 13,722.93 | 14.36% | 27.39% |
| 2 Years | 24,000 | 33,339.64 | 38.92% | 35.03% |
| 3 Years | 36,000 | 55,303.07 | 53.62% | 29.89% |
Summary
- The Direct Plan has delivered an impressive annualized return of 21.58% since its inception in September 2021.
- The Regular Plan has also shown strong performance with an annualized return of 24.17% over the same period.
- SIP investments in the Regular Plan have yielded substantial returns, with a 3-year annualized return of 29.89%.
These figures indicate that the Axis Value Fund has been a strong performer in the value-oriented equity mutual fund category, offering significant returns for both lump-sum and SIP investors.
Axis Value Fund Regular Growth
Here is a comprehensive overview of the Axis Value Fund – Regular Plan – Growth as of November 2024:
Performance Summary
| Period | Absolute Return (%) | Annualized Return (%) |
|---|---|---|
| 1 Week | -3.91% | — |
| 1 Month | -6.59% | — |
| 3 Months | -1.12% | — |
| 6 Months | 13.53% | — |
| Year-to-Date (YTD) | 23.07% | — |
| 1 Year | 38.04% | 37.79% |
| 2 Years | 68.99% | 29.95% |
| 3 Years | 66.45% | 18.46% |
| Since Inception | 77.10% | 19.91% |
Suitability
This fund is suitable for investors with a long-term investment horizon (preferably more than five years) who are comfortable with market volatility and are looking to invest in undervalued stocks with the potential for capital appreciation.
Axis Value Fund Direct Growth
Here is a comprehensive overview of the Axis Value Fund – Direct Plan – Growth as of April 2025:
Performance Summary
| Period | Absolute Return (%) | Annualized Return (%) |
|---|---|---|
| 1 Month | 0.66% | — |
| 3 Months | 6.55% | — |
| 6 Months | 24.84% | — |
| 1 Year | 51.47% | 51.47% |
| 3 Years | 22.79% | 22.79% |
| Since Inception | 17.2% | — |
Investment Strategy
The fund follows a value investing approach, aiming to identify and invest in fundamentally strong but undervalued companies across various sectors and market capitalizations.
This strategy is designed for investors with a long-term investment horizon who are comfortable with high market volatility.
Strengths of Axis Value Fund
1) Value-Oriented Strategy:
- The fund follows a value investing strategy, focusing on stocks that are undervalued by the market but have strong fundamentals. This can provide long-term growth potential as the market recognizes their true value over time.
2) Experienced Fund Management:
- The fund is managed by skilled professionals with deep experience in equity markets. Nitin Arora and Sachin Relekar, the fund managers, bring a robust track record to the table.
3) Diversified Portfolio:
- Axis Value Fund invests in a diversified set of sectors, including financials, energy, healthcare, and technology, which helps mitigate sector-specific risks.
4) Strong Track Record:
- Despite being a relatively new fund (launched in 2021), it has generated attractive returns, outperforming many peers in the value fund category.s of Axis Value Fund
5) Focus on Long-Term Growth:
- Value investing typically works well over the long term, and Axis Value Fund targets long-term capital appreciation by picking undervalued companies with solid growth potential.
6) Risk-Adjusted Returns:
- The fund has provided a good balance of risk and returns, with a history of managing volatility while aiming for attractive risk-adjusted returns.
Risks of Axis Value Fund
1) High Volatility:
- Being an equity fund, it is subject to market volatility. While the fund’s focus is on undervalued stocks, these stocks can remain underpriced for extended periods, and market conditions can impact short-term performance.
2) Value Style Risk:
- Value investing may underperform during periods when growth stocks are in favor (e.g., during market rallies). In such conditions, the fund may lag behind growth-focused funds.
3) Concentrated Risk in Some Sectors:
- Axis Value Fund has significant exposure to financial and energy sectors, which can be risky if those sectors face regulatory or economic headwinds.
4) Potential for Low Liquidity:
- The fund may invest in mid- and small-cap stocks, which can sometimes suffer from lower liquidity. This could affect the ease of buying or selling these stocks without influencing the market price.
5) Underperformance During Market Booms:
- In periods of rapid economic growth or bull markets, the fund’s value-based strategy could lead to underperformance as it may be slow to capitalize on high-growth opportunities, unlike growth funds.
6) Risk of Long-Term Underperformance:
- If the broader market or the sectors the fund is invested in do not perform well, the fund’s strategy could lead to prolonged underperformance.
Conclusion
While the Axis Value Fund offers an appealing strategy for long-term investors who are comfortable with volatility and patient enough to wait for the market to realize the value of undervalued stocks.
its performance may lag during market booms that favor growth stocks. It’s best suited for investors with a long-term horizon who can tolerate market fluctuations and sectoral risks.
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