Most of the equity funds of Axis Mutual Funds such as Axis Multicap Fund, Axis Long Term Equity Fund, and Axis Bluechip Fund have generated positive returns for the investors and are toppers in the relevant mutual fund categories. As 2018 was full of ups and downs with the underperformance of most of the mutual fund schemes, maintaining a good ranking among others certainly is a result of efforts and investment strategies applied by the fund house and competent fund managers. Here are the reasons which made this fund house to sustain the volatility and produce positive outcomes. 

Axis Mutual Fund always focuses on long-term rather than believing in changing strategies immediately and expecting changes overnight. The AMC is consistent in its philosophy since launch and sustained the market volatility quite well. If you have a look at the portfolio of the schemes, you will find that the equity schemes have 10-20 stocks from last 4-5 years. The fund house is following the same strategy from day one, and that has produced stable returns as compared to other funds in the category. 

Instead of focusing on 80-90 stocks in the portfolio, the AMC focuses on 30-40 stocks. According to the experts at Axis MF, when a portfolio consists more stocks, your search skills become more critical to make sure that you are picking the right securities. So, the complete focus of the fund house is on choosing some quality companies which have the potential to create wealth over a time horizon. 

The true test of any scheme is when the market is facing down. Axis Mutual Fund is confident in creating a portfolio which ensures the protection of capital. Focusing on performance during each market conditions, the AMC puts efforts in creating a high alpha rather than high beta. The fund managers pay heed to good quality management and focus on long-term wealth instead of short term gain. This strategy has helped the investors to stay calm during the market volatility. 

The SEBI re-categorization in 2018 made many AMCs to change the schemes’ categories to fit into the definition. But, Axis MF was out of it as being a small AMC, it has only one scheme in the respective category such as ELSS, midcap, large-cap, etc. So, there was no requirement of any merge or change, and it was not a big change for this AMC. With a fix investment approach, re-categorization has only brought positive changes for the AMC. 

With market meltdown in 2018, Axis MF was expecting a slow down in new registration and massive redemption, but that has not happened as they started educating investors about the asset class and nature of that category. The AMC made efforts to aware investors about the changes particular scheme is undergoing and that helped them in sustaining the volatility. 

The in-house philosophy of the Axis Mutual Fund is to focus on well-formulated companies with good management structure. Every mutual fund is handled by the fund manager who takes an investment decision based on information provided by the research team. This approach of stock picking with good companies in the portfolio has helped the fund house to generate favourable outcomes for investors in different market conditions. 

With good stock picking strategy, strong relation with investors, well-categorised schemes, high alpha and tight portfolio, it was an easy go for the fund house to sustain the market downturn in 2018. You can also start investing in Axis MF with provided schemes under equity, debt, and hybrid categories.