Skip to main content

BOI AXA Equity Fund

Invest Mutual Funds Online

Download Mutual Fund Application Forms

 

Multi-cap funds provide investors a benefit of investing across market capitalisations - be it large caps, mid caps or small caps. Their investment mandate does not restrict them to invest in only a specific market cap segment, which thus provides them an opportunity to create wealth by delivering alpha returns. Moreover, they are not confined to one particular style of investing, which allows them to follow a value, growth or blend style of investing. While undertaking their stock picking activity too they can follow a bottom-up as well as a top-down approach for investing across capitalisations. Hence given that, the fund managers' of multi-cap funds very often actively engage in portfolio churning (to take exposure to the opportunities in respective market segment(s)) with an objective of creating wealth.

Bharti AXA Equity Fund (BAEF) is one such open-ended multi-cap equity oriented fund from the stable of Bharti AXA Mutual Fund, which follows a blend style of investing. BAEF is mandated to invest in equities and equity-related instruments across capitalisation, along with debt and money market instruments. Launched in October 2008, the fund has been in existence for a little over 3 years now.

The fund's primary investment objective is "to generate income and long-term capital appreciation through a diversified portfolio of predominantly equity and equity-related securities including equity derivatives, across all market capitalizations. The Scheme is in the nature of diversified multi-cap fund. The Scheme is not providing any assured or guaranteed returns. Further, there can be no assurance that the investment objective of the scheme will be realized."

The fund is mandated to invest 65% - 100% of its total assets in equity and equity-related securities (across capitalizations) - including investment in derivatives upto 50% of net assets of the portfolio, and the rest (upto 35%) in debt and money market instruments to manage its liquidity requirements.

While undertaking its stock picking activity, BAEF follows top-down approach to shortlist stocks for the portfolio construction. Under the top down process BAEF aims to look at the global and Indian economy and the domestic policy environment along with stock valuations. This would thus result in identification of themes which have a potential to outperform. The final stock selection process would also include the bottom-up approach wherein stocks from the short listed themes would be picked up based on valuations.

Equity Portfolio

BAEF believes in having companies with sustainable business models, along with those which have the potential for capital appreciation. However it imbibes in it the flexibility to pursue opportunities across the entire market capitalisation spectrum, from smaller companies to well-established large-cap companies, without having any bias in favour of sectoral allocations, or market capitalisation. However, as per the latest disclosed portfolio as on October 31, 2011, the fund has allocated majority of its corpus to large cap stocks which form 89.1% of its portfolio. Mid and small cap stocks account for 7% of the portfolio while the debt and cash component is 3.9%.

Being benchmarked to the S&P CNX Nifty index, BAEF's latest portfolio (i.e. as on October 31, 2011) constitutes of 41 stocks, where the top-10 stocks account for 55.6% of the portfolio while the top-5 sectors account for 51.1% of its portfolio. However a noteworthy point is BAEF indulges in very aggressive churning (as revealed by its portfolio turnover ratio of 2.1 times) as compared to the other funds in its category.

How BAEF has fared vis-à-vis its peers?

The above table reveals that on the return front, BAEF's performance vis-à-vis its peers is disappointing. Over a 3-Yr time frame, the fund has delivered a return of mere 15.8% CAGR being the second lowest in the peer set above and has not even been able to match the performance of its benchmark.

On the volatility front, BAEF has exposed to its investors to the moderate risk (Standard Deviation of 8.29%) and risk adjusted returns clocked by the fund are appalling (as revealed by the Sharpe Ratio of just 0.13 which is lower as compared to its benchmark) .

Fund Manager Profile

Name of the Fund Manager

Mr. Gaurav Kapur

Total Work Experience

Over 9 years

Managing the fund since

Mar-11

Qualifications

CFA, CA, MBA

Bharti AXA Equity Fund was launched during the bear phase of the market in spite of which the fund has failed to capitalise on the opportunity and has fared dismally. The average AUM of the scheme for past 12 months has been ` 80.3 crore and the expense ratio is 2.50%. The fund manager has churned the portfolio very aggressively and has mainly focused on short term opportunities thereby missing the initial advantage of buying stocks at cheaper valuation during its early days.

Investing in a mutual fund during a market downtrend will not automatically translate into generating stellar returns. The strategy of taking momentum calls may hurt long term investors. BAEF is an example of how one may miss to capitalise on opportunities despite being investing at attractive valuation. Investing in a fund managed by a fund house which follows systems and processes and has an established track record of performance may enhance your chances of benefiting from your mutual fund investment.

--------------------------------------------

Invest Mutual Funds Online

Transact Mutual Fund Online

 

Download Mutual Fund Application Forms from all AMCs

Download Mutual Fund Application Forms

 

Best Performing Mutual Funds

    1. Largecap Funds:
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    3. Mid and SmallCap Funds
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    4. Small and MicroCap Funds
      1. DSP BlackRock MicroCap Fund
    5. Sector Funds
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    6. Gold Mutual Funds
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

 

Popular posts from this blog

Save Tax With Mutual Funds

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300       Mutual funds are ideal as long term investment avenues for retail investors. To encourage investments in this avenue, the Government of India offers investors a spate of tax benefits thus ensuring maximum benefit from mutual funds held beyond a year. Sample some of the key benefits and refer to the table for a detailed list of tax rates for different types of schemes ·        Avail deductions under Sec 80C of the Income Tax Act by investing up to a maximum of Rs. 1 lakh in designated Equity Linked Savings Schemes (ELSS). Such investments have a compulsory lock in period of 3 years. ·        First time retail investors in equity with a gross total income of up to Rs. 12 lakh can invest up to Rs. 50,000 in specific MF schemes un...

How much to invest in gold ?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) Let your motivation dictate the share of the yellow metal in your portfolio Enough has been said and written about gold as an investment option. The latest argument is that the craze for gold among Indian households is endangering our country's balance of payments. The policymakers are busy trying to find ways of discouraging investment in gold, but if households keep the common good in mind, they would be paying the market price for gas cylinders as they do for, say, their mobile phone bills. After all, private decisions are driven by private motives. So, how should a household look at gold from its own perspective? Gold is primarily acquired for its merit as a store of value. Even if the worst crisis hits a family, the gold that it holds could be put to use anywhere in th...

LIC's JEEVAN SHIKHAR

  LIC's Jeevan Shikhar is a participating, non-linked, saving cum protection single premium plan wherein the risk cover is ten times of Tabular Single Premium. The proposer will have an option to choose the Maturity Sum Assured. The premium payable shall depend on the chosen amount of Maturity Sum Assured and age at entry of the life assured. This plan also takes care of liquidity need through its loan facility. The plan will be open for sale for a maximum period of 120 days from the date of launch. 1.   BENEFITS   : a) Death Benefit: On death during first five policy years: Before the date of commencement of risk   :   Refund of Single Premium without interest. Single Premium mentioned above shall not include any extra amount if charged under the policy due to underwriting decision and taxes. After the date of commencement of risk   : "Sum Assured on Death" equal to 10 times the tabular single premium shall be payable. On death after completion of five policy years but b...

UTI Fixed Term Income Fund Series XVI - I

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   UTI Fixed Term Income Fund Series XVI - I (366 days). New Fund Offer opens on : Friday, August 16, 2013 New Fund Offer closes on : Monday, August 19, 2013 Allotment Date : Tuesday, August 20, 2013 Scheme Tenure : 366 days Maturity Date : Thursday, August 21, 2014 Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C. Inve...

Invest in Fixed Deposits or not?

  Negative Post Tax Returns from Fixed Deposits Have you ever thought that you might be losing your hard money by locking it in fixed deposits? Instead of multiplying your money, fixed deposits might be eating-up your money. Baffled!!! Let's see how fixed deposits are not a good investment avenue as most of us thinks. Real Rate of Return of Fixed Deposits Most of the Institutions that are authorized by RBI to provide Fixed Deposits facilities such as banks, NBFCs, Companies, Housing Finance Companies etc. offer fixed deposits with interest rate ranging from 8.50% to 9.50% for tenure of 1 year. The interest may vary for longer term but usually lies in between the above ambit. So, for calculation purpose we take the following figures: Investment Amount: Rs.1 lakh Interest Rate: 8.50% p.a. to 9.50% p.a. Interest Compounding : Quarterly Inflation Rate: 7.00% Inflation rate indicates the rise in the prices from the base price. Let's say the product you could have bought for Rs.100...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now