2024-09-09 09:48:22
Mumbai: When it comes to investment, people first look at bank FD. When the investor becomes a little aware, he looks at Public Provident Fund or PPF. Some people go even further and invest in mutual funds. With this investment, they are able to increase their money rapidly. Yes, today we are telling you about a fund which has left bank deposits, PPF or all other means of investment far behind in returns. It has given a return of more than 31 percent in a year.
One lakh became more than 1.31 lakh in one year
We are talking about Axis Mutual Fund’s Balanced Advantage Fund. It has given a return of more than 31 percent in the last one year. That is, if you had invested Rs 1 lakh a year ago, today your amount would have been more than Rs 1.31 lakh. You will not get such a return either in bank deposits or in PPF or post office deposits.
Also outperformed benchmark returns
Compared to the one-year return of over 31 per cent of Axis Balanced Advantage Fund, its benchmark Nifty 50 Hybrid Composite has given a return of only 17.68 per cent. The return of this fund at a compounded rate of CAGR in three years has been more than 15 per cent.
What is the return of other fund houses
If we look at the returns of other fund houses during the same period, Nippon’s Balanced Advantage Fund has given a return of 28 percent in one year. Birla’s Balanced Fund has given 25 percent, SBI Balanced has given 25 percent, Kotak Balanced has given 24 percent and Tata Balanced Advantage Fund has given only 23 percent return.
On which formula asset allocation is done
Axis Fund’s Balanced Advantage Fund was launched on August 1, 2017. Now it has completed seven years. At present, its asset under management is Rs 2466 crore. Actually, Balanced Advantage Fund follows a dynamic approach for asset allocation. For this, Balanced Advantage Fund uses a systematic rule-based model that incorporates equity allocation over time. This is an in-house process with the help of which the fund manager is able to invest in equity. This fund invests from zero to 100 percent in equity or fixed income.
dynamic strategy
Jayesh Sundar, Equity Fund Manager, Axis Mutual Fund, says that Axis Balanced Advantage Fund follows a dynamic strategy for equity allocation, which includes companies with strong growth potential at reasonable valuations. This fund looks at model-based valuation for investment. Through which the risk is revealed. There is an asset allocation committee which reviews the investment on a monthly basis and investment decisions are taken based on events. This fund follows five factors for rebalancing. These mainly include valuation, earnings, global and domestic macro conditions, trends and global events etc.
Axis Balanced Advantage Fund follows a dynamic strategy for equity allocation, consisting of companies with strong growth potential at reasonable valuations. The fund looks at model based valuations for investing.
Jayesh Sundar, equity fund manager, Axis Mutual Fund
Where is the investment and how much is it
This fund currently has 77.6 percent investment in large caps, 13.1 percent in mid caps and 9.4 percent in small caps. Talking about the top 10 sectors, they are financial services, IT, healthcare, oil and gas, automobile and its components, FMCG, capital goods, chemicals and others.
Disclaimer: The suggestions given in this analysis are those of individual analysts or broking companies, not of NBT. We advise investors to consult certified experts before making any investment decision. As stock market conditions can change rapidly.