new axis midcap fund · 2018. 8. 31. · axis midcap fund (an open ended equity scheme...
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AXIS MIDCAP FUND(An open ended equity scheme predominantly investing in Mid Cap stocks)
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There is a high dispersion in long term stock performance
Copyright 2018 | Axis Mutual Fund | Confidential 2
CNX Midcap Index – Stock dispersion (2007-2017)
Source: Bloomberg, Data considered from Dec 2007 - Dec 2017
% pa % Absolute
Quartile I 26.8% 1025.7%
Quartile II 12.1% 224.6%
Nifty Midcap 100 Index 8.7% 129.5%
Quartile III 0.3% 7.3%
Quartile IV -16.8% -73.9%
Weak companies
have destroyed
significant investor
wealth
Large dispersion in stock performance in
mid-caps
• The cost of mistakes can be very high –
permanent capital erosion
• Stock picking and focus on
sustainability becomes key
Axis Midcap Fund: Positioning
Copyright 2018 | Axis Mutual Fund | Confidential 3
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Invests at least 75% in mid
cap companies^
Risk management embedded in the investment
process
Follows a strategy of combining growth potential of
mid cap companies with the track record of larger
companies
Note: Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets. Market caps are defined as per SEBI regulations
as below: a. Large Cap: 1st -100th company in terms of full market capitalization. b. Mid Cap: 101st -250th company in terms of full market capitalization. c. Small Cap: 251st company onwards in terms of full market
capitalization.
Focused on emerging
sectors/businesses that have
potential to deliver high growth
We look for businesses with
Economic Moat
Unique long term orientation that helps investors
Copyright 2018 | Axis Mutual Fund | Confidential 4
Traditional Life Cycle of a company
Emerging companies
High growth phase
But prone to higher risks
Business not yet well established
Superior growth profile
Established track record
Maintains flexibility
Lower risk compared to
smaller companies
Stable growth
Established business models
Reduced flexibility
Lower risk compared to mid cap
companies
Growth Phase
Newly established businesses
No track record
Prone to significantly higher risks
Mid CapsSmall Caps
Start-up Phase Mature Phase
Large Caps
Changes made to the portfolio over the last 1 year
Portfolio Characteristics July 17 July 18
No. of Stocks 48 37
Market Cap Mix
Large Caps: 12%
Mid Caps: 76%
Small Caps: 7%
(Remaining in cash &
cash equivalents)
Large Caps: 15%
Mid Caps: 67%
Small Caps: 7%
(Remaining in cash & cash equivalents)
Top 10 stocks (% of portfolio) 40% 43%
Top stocks with increased
exposure/entries
Change in exposure
(%) over last year
Top stocks with reduced exposure/
exits
Change in exposure (%)
over last year
Bajaj Finance Ltd 3.8% Bajaj Finserv Ltd -4.0%
Astral Poly Technik Ltd 3.6% UPL Limited -3.2%
Mahindra & Mahindra Financial Services Ltd 3.2% Berger Paints India Ltd -3.1%
Avenue Supermarts Limited 2.9% UPL Limited -3.1%
Mahindra & Mahindra Financial Services Ltd 2.7% Torrent Power Ltd -2.9%
Exposure as % of Net assets. Source : ValueFY, ACEMF. Note: Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity
markets. Market caps are defined as per SEBI regulations as below: a. Large Cap: 1st -100th company in terms of full market capitalization. b. Mid Cap: 101st -250th company in terms of full market capitalization. c.
Small Cap: 251st company onwards in terms of full market capitalization. Past performance may or may not be sustained in the future. Stock(s) / Issuer(s)/ Top stocks with increased or decreased exposure
mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation to buy/sell/ hold. The fund manager(s) may or may not choose to hold the stock
mentioned, from time to time.
Key sectors
Copyright 2018 | Axis Mutual Fund | Confidential 6
Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets. Past performance may or may not be sustained in
the future. Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may not
choose to hold the stock mentioned, from time to time. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s).
Auto & Logistics
• Improving economy and moderating ownership costs, with falling interest rates and fuel prices to drive gradual recovery in demand over coming years
Finance
• Asset quality pressure to taper off with an economic uptick, deleveraging in the corporate sector and peaking growth in stressed loans
Consumer & Media
• Indian consumer sector has been facing headwinds due to weak macro and benign input costs.
• Improving economy to drive high margins over the next years
• The advertising market is showing initial signs of a pickup after a prolonged period of sub-nominal GDP growth
Illustrations:
• Sector: Media & Publishing
• Strong management
• Healthy operating performance
• Impressive market share in the industry ( ~ 25% )
• Strong presence across locations coupled with growth levers like advertisements, etc.
Copyright 2018 | Axis Mutual Fund | Confidential 7
• Sector: Consumers
• Good quality management
• One of the top paint companies and market leader in industrial paint for past 4-5 decades
• Has consistent track record and one of the fastest growing paint companies
• Global presence
• Sector: Financial Services
• A subsidiary of a reputed financial institution; superior management team with good track record
• Niche business (rural housing finance) catering to under-banked, self-employed
• Superior asset quality along with sustainable low risk & consistent returns
• Return on Equity (RoE) of over 30% over last 7 years
Company A Company B Company C
This is merely an illustration to explain the investment philosophy. It does not constitute any advise to sell, buy or in any manner transact in this security and should not be considered as Research Report. The fund
manager may choose not to hold the stock at a later date. There may be other stocks in the portfolio which may not have had a similar performance. The mutual fund scheme(s), AMC, trust company, any
associate(s), director(s), employees etc may hold position in various securities from time to time. Investors are advised to consult their independent advisors. Past performance may or may not be sustained in
future.
Portfolio & Risk Parameters (July 18)
Top 5 sector holdings Risk parameters (3 years)
Top 10 stocks Current market cap split (% NAV)
Copyright 2018 | Axis Mutual Fund | Confidential 8
Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets. Past performance may or may not be sustained in
the future. Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may not
choose to hold the stock mentioned, from time to time. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). *Effective April 16th 2015, Asia Index Private
Limited (AIPL) has replaced S&P BSE Midcap with new set of values. The above ratios are calculated based on the new S&P BSE Midcap Index.
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100%
Jul-16 Jan-17 Jul-17 Jan-18 Jul-18
Large Cap Midcap Small Cap
Invests at least 75% in mid cap companies
Copyright 2018 | Axis Mutual Fund | Confidential 9
Wtd. average portfolio market Cap: 32,312 crs.
Large Cap
Mid Cap
Small Cap
Past performance may or may not be sustained in future. Source of data: ACEMF, Market caps are defined as per SEBI regulations as below: a. Large Cap: 1st -100th company in terms of full market
capitalization. b. Mid Cap: 101st -250th company in terms of full market capitalization. c. Small Cap: 251st company onwards in terms of full market capitalization.
Performance
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Past performance may or may not be sustained in future. Calculations are based on Growth Option NAV. Since inception (18 February 2011) returns is calculated on ` 10 invested at inception. Different plans have different expense structure. Plan of the scheme for which performance is given is indicated above. Shreyash Devalkar is managing the scheme since 23rd November 2016 and he manages 5 schemes of Axis Mutual Fund. The performance of the scheme is benchmarked to the Total Return variant of the Benchmark Index (TRI) in terms of SEBI circular dated Jan. 4, 2018. Returns greater than 1 year are Compounded Annual Growth Rates (CAGR).
Large Cap
Small Cap
SIP Performance as on July 31, 2018
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Past performance may or may not be sustained in future. Calculations are based on Growth Option NAV. Different plans have different expense structure. Plan of the scheme for which performance is given is
indicated above. SIP returns are computed after accounting for the cash flow by using XIRR method (investment internal rate of return). Returns greater than 1 year are compounded annualised. The performance of
the scheme is benchmarked to the Total Return variant of the Benchmark Index (TRI) in terms of SEBI circular dated Jan. 4, 2018. Benchmark: S&P BSE Midcap Index. Additional Benchmark: Nifty 50 Index.
Inception Date: Feb 18, 2011. Shreyash Devalkar is managing the fund since 23rd November 2016 and he manages 5 schemes at Axis Mutual Fund. Please refer to annexure for performance of all schemes
managed by the fund manager.
SIP Investments Since Inception SIP 5 Year SIP 3 Year SIP 1 Year SIP
Total Amount Invested 890,000 600,000 360,000 120,000
Market value as on July 31, 2018 1,909,775 957,647 464,873 130,321
Returns (Annualised) % 20.13% 18.78% 17.35% 16.39%
Benchmark Returns (Annualised) % 17.73% 18.43% 14.22% -2.11%
Additional Benchmark Returns (Annualised) % 14.18% 14.76% 17.87% 19.86%
Annexure
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The performance of the scheme is benchmarked to the Total Return variant of the Benchmark Index (TRI) in terms of SEBI circular dated Jan. 4, 2018. Past performance may or may not besustained in future. Calculations are based on Growth Option NAV. Since inception returns are calculated on ` 10/- invested at inception. Different plans have different expense structure. Planof the scheme for which performance is given is indicated above. Above data excludes returns of schemes which have not completed a year. Shreyash Devalkar is managing Axis Bluechip Fundand Axis Midcap Fund since 23rd November 2016 and Axis Equity Advantage Fund - Series 1 & 2 & Axis Multicap Fund since inception. Market caps are defined as per SEBI regulations asbelow: a. Large Cap: 1st -100th company in terms of full market capitalization. b. Mid Cap: 101st -250th company in terms of full market capitalization. c. Small Cap: 251st company onwards interms of full market capitalization.
Large Cap
Mid Cap
Small Cap
Product Labelling
Fund Name Riskometer Product Labelling
Axis Bluechip Fund(An open ended equity scheme predominantly
investing in large cap stocks)
This product is suitable for investors who are seeking*
• Capital appreciation over long term
• Investment in a diversified portfolio predominantly
consisting of equity and equity related instruments
of large cap companies
Axis Midcap Fund(An open ended equity scheme predominantly
investing in Mid Cap stocks)
This product is suitable for investors who are seeking*
• Capital appreciation over long term
• Investing predominantly in equity & equity related
instruments of Mid Cap companies.
13Axis Mutual Fund
Statutory Details and Risk Factors
Disclaimer: Past performance may or may not be sustained in the future.
Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored byAxis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: AxisAsset Management Co. Ltd. (the AMC) Risk Factors: Axis Bank Limited is not liable or responsible for any loss orshortfall resulting from the operation of the scheme.
This document represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for aninvestment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management CompanyLimited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arisefrom the use of the information contained herein. No representation or warranty is made as to the accuracy,completeness or fairness of the information and opinions contained herein. The AMC reserves the right to makemodifications and alterations to this statement as may be required from time to time.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Data updated as on 31st July 2018
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Thank you