In India, Axis Multicap funds are mutual funds offered by Axis Asset Management Company. These funds fall under the category of equity mutual funds and are designed to provide investors with a diversified portfolio of stocks from various sectors and market capitalizations. Axis Multicap funds were renamed to Axis Flexi Cap funds in 2021 due to the regulatory changes introduced by the Securities and Exchange Board of India (SEBI).
The Significance of Axis Multicap Funds
Axis Flexicap Funds, formerly known as Axis Multicap Funds hold great significance in the Indian financial market due to their adaptability and diversification. Regulatory changes, including the SEBI mandate that requires multi-cap funds to allocate a minimum percentage of assets in small-cap and mid-cap stocks, led to the renaming of these funds. This showcases their flexibility and compliance with changing market regulations while maintaining their objective of capital appreciation over the long term.
Furthermore, Axis Multicap funds allow investors to diversify across large-cap, mid-cap, and small-cap segments along with reducing concentration risk. Their active management approach allows skilled fund managers to understand changing market conditions. Axis Multicap Funds provides investment options that adapt to regulatory shifts and offer a diversified strategy for those seeking long-term growth opportunities in the Indian equity market.
Key Features of Axis Multicap Funds
Axis Multicap funds typically include several key features including:
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Flexibility in Allocation:
These funds have the flexibility to invest in companies across various market capitalizations including large-cap, mid-cap, and small-cap stocks. The fund manager can adjust the allocation based on their assessment of market conditions and investment opportunities.
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Diversification:
Axis Multicap Funds provide diversification across different market segments. This diversification helps spread risk by reducing overexposure to a particular market cap category or sector.
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Active Management:
These funds are actively managed. Experienced fund managers make investment decisions based on their research and analysis of market conditions and individual stocks. This active management approach aims to outperform benchmark indices.
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Market Risks:
Axis Multicap Funds primarily invest in equities, exposing them to the volatility and risk of the financial market. Changes in stock prices, economic conditions, and market sentiment influence the performance of these funds.
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Long-Term Investment Focus:
The primary objective of Axis Flexicap Funds is to achieve capital appreciation over the long term. These funds are typically suitable for investors with a longer investment horizon.
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Regulatory Compliance:
These funds have been adjusted to meet regulatory requirements specifically set by the Securities and Exchange Board of India (SEBI) for multi-cap funds. The changes made to Axis Multicap Funds make sure that the fund's portfolio meets the minimum requirements for investing in different types of stocks based on their market capitalization.
Latest Asset & Portfolio Allocation
As of September 2023, Axis Multicap Funds maintain a well-balanced portfolio allocation with a strong focus on equities constituting a substantial 96.71% of the total assets. Here is a breakdown of the portfolio's asset allocation:
Equity
Equity investments account for the majority of the portfolio at 96.71%. This demonstrates the fund's primary focus on equities which often provide the potential for higher returns over the long term.
Debt
The fund also allocates a smaller portion, 2.69%, to debt instruments. This allocation adds a touch of stability to the portfolio and helps to manage risk during market volatility.
Other
A minor portion, 0.6%, is allocated to other assets which include various financial instruments or alternative investments.
Allocation by Market Cap:
The fund's allocation across different market capitalization categories reflects its adaptability and commitment to diversification:
- Large Cap: A 38.46% portion of the fund's assets is invested in large-cap stocks which are typically associated with stability and established companies.
- Mid Cap: The fund also allocates a substantial 25.86% share to mid-cap stocks.
- Small Cap: The fund includes 32.39% small-company stocks, showing that it's open to investing in smaller businesses that could potentially grow a lot.
Allocation by Sector:
The Axis Multicap Funds guarantee sector diversification by investing in a variety of industries:
- Financial: The financial sector plays a significant role in the fund's portfolio with 23.12% holdings in banks and financial services companies.
- Technology: The technology sector has 14.71% holdings in the fund's portfolio. It reflects confidence in the growth potential of tech companies.
- Automobile: The portfolio has 14.15% holdings in the automobile industry which includes both domestic and international manufacturers.
- Healthcare: The healthcare sector represents 10.42% of the portfolio which indicates investment in companies involved in pharmaceuticals, healthcare services, and medical technology.
Top Stock Holdings
The Axis Multicap Funds hold a diversified basket of stocks that emphasize the following top stock holdings:
| Stock | Ticker | Last Price | Technical Score | Growth Score |
|---|---|---|---|---|
|
Bajaj Finance Limited
|
BAJFINANCE
|
7295.45
|
47
|
73
|
|
Cholamandalam Investment and Finance Company Limited
|
CHOLAFIN
|
1175.35
|
66
|
73
|
|
ICICI Bank Limited
|
ICICIBANK
|
1229.8
|
57
|
83
|
|
KPIT Technologies Limited
|
KPITTECH
|
1299.95
|
44
|
68
|
ICICI Bank Ltd.
ICICI Bank Ltd., with a 6.01% share of the fund's portfolio, is one of India's leading private-sector banks. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialized subsidiaries in areas such as investing in banking, insurance, venture capital, and stock management.
Cholamandalam Investment and Finance Company Ltd.
Cholamandalam Investment and Finance Company Ltd., holding 4.36% of the fund, is a diversified non-banking finance company (NBFC) in India. It primarily engages in vehicle finance, home loans, and corporate finance, among other financial services.
KPIT Technologies Ltd.
KPIT Technologies Ltd., with a 4.09% allocation, is a global technology company specializing in IT consulting and product engineering solutions. This investment reflects KPIT's expertise in next-generation technologies such as autonomous driving, electrification, and digital transformation.
Bajaj Finance Ltd.
Bajaj Finance Ltd., comprising 3.91% of the fund, is another major player in the Indian financial sector. As a leading NBFC, Bajaj Finance offers a comprehensive suite of financial products including consumer durable loans, personal loans, home loans, and small business financing.
Final Words
Axis Multicap Funds also known as Axis Flexicap Funds provide Indian investors with a flexible and diversified investment option in the financial market. These funds adapt to regulatory requirements and aim for long-term capital growth. They invest primarily in equities while spreading risk through diversification and allocation across market segments with a balanced portfolio. Also, investors should keep in mind the potential for varying returns in this mutual fund category.