You may be wondering if Axis Bluechip fund a good investment and most experts will be recommending the same as well. This is a large-cap mutual fund for investment. This scheme is actually suitable for those investors who are more conservative and equity-oriented, and those who are seeking to invest with a horizon of about 5-7 years on average. If you make the assumption of 12% in annualized returns, you can build a handsome corpus of Rs. 5.28 lakh approximately, if you are investing Rs. 5,000 after the passage of 6 years.
This answers your query as to how Axis Bluechip funds direct plan growth. So yes, it may not be possible discover more to achieve Rs. 25 lakh in a shorter span of time. Yet, you should always know that however high performing it may be, this Axis mutual fund will not guarantee the returns that you desire. The actual returns are largely dependent on how the investments are performing.
Chasing after Rs. 25 lakh as the accumulated corpus if you choose to invest in Axis Bluechip fund, is a slightly unrealistic goal that you have. You should never chase after such improbable returns and get yourself into investment schemes that are offering comparatively higher returns. This is one of the commonest errors which are committed by investors in the market.
Should you invest in the Axis Bluechip fund at all?
There are more than 5 reasons why you should invest in Axis Bluechip fund and you should start out by thoroughly listing out your financial goals across both long and short durations. You should have a figure for each and every goal, accounting for inflation on an annual basis, in order to work out a more realistic corpus in order to achieve these objectives. Once you have your targets firmly in place, you can work out the amount that you require in order to achieve the same. Remember that you will be investing a certain sum of money every month and you should be ready to deploy the same without compromising on other basic monthly costs and payments.
When it comes to Axis Bluechip fund direct plan to invest online, you can check out whether it aligns with your goals or not. For this particular fund, you should invest for a minimum duration of 5 years or more. This will help you get sufficient and handsome gains/returns that will help you comfortably keep inflation at bay. The returns, while surpassing the rate of inflation, will naturally exceed options in the fixed income category. Yet, you should be fully prepared for fluctuations and market shifts in terms of the value of the investment down the line. These are funds that majorly deploy investments in large size companies. In comparison to funds which make investments in smaller sized companies, these funds usually fall lower whenever there is any fall in stock prices. As a result, they are more suitable for equity investors with a more conservative bent of mind. You should always invest via SIPs or systematic investment plans like all other investments made in equity-based funds. This will help you spread your risks without having to invest a lump sum amount in one go.
Some key aspects worth knowing
- You should not invest in such plans or any large-cap funds in the market, in case you have to redeem the investment within a period of less than 5 years.
- You should be careful regarding overall taxation for your earnings. In case mutual fund units cross a year from the investment date before being sold, gains up to Rs. 1 lakh are exempted in one financial year from being taxed. Gains exceeding this amount will have 10% taxation rates.
- In case the units are sold within a year from the investment date, all your gains will be subject to taxation at the rate of 15%.
- You need not pay up any taxes if you keep holding onto the units in question.
- Dividends that are paid out by mutual fund plans will have tax rates of 10%. This comes to approximately 11.648% as the effective rate, inclusive of cess and surcharge. This is called DDT or dividend distribution tax. Although investors do not pay these taxes directly, they are subtracted from dividend income, prior to being passed onto investors.
- The minimum amount for investing in SIPs or systematic investment plans is Rs. 500 in this case.
- The risk levels are high although moderate in comparison to several other investment plans.
- 0.46% is the expense ratio while the NAV stands at ₹30.25 as of 11th June this year.
- The size of the fund stands at Rs. 13,003 crores within this period.
On a Closing Note
The advantages of investing in this fund are that risks are comparatively lower if you take the benchmark into account. The expense ratio is also on the lower side and that is a major plus point for investors. However, like everything else, there are some disadvantages as well.
Firstly, if you take the category in question, the returns (after being adjusted for risk) may sometimes be lower while 1-year returns could also be lower than the benchmark. The same may apply for 3 and 5-year returns. However, the overall performance of the fund has been quite good and as mentioned earlier, those looking to benefit from large-cap equity investments should certainly consider the same.