Investment in Axis long term equity MF

POSTED BY Patrick ON April 18, 2014 11:41 am COMMENTS (12)

I was planning to invest in Axis long term equity MF through SIP for long term- Direct plan and Growth option. But its risk grade is very high(on axis MF site) and very low(on valueresearch).

I have also invested in ICICI prudential tax plan. I want to know is it worth to invest in Axis long term equity MF ? which has high risk. Is all ELSS are high risk funds ?

I have checked for ELSS on valueresearch for top 5 funds for 10 year, but they all are showing risk grade high on their company sites and on valueresearch they have avg risk

12 replies on this article “Investment in Axis long term equity MF”

  1. ashalanshu says:

    Dear Patrick, regarding tax benefit under section 80C, there are so many other funds. Yes the selection points are OK.

    Please go ahead.

    thanks

    Ashal

  2. ashalanshu says:

    Dear Rajiv, from your own selection method, point 1, 2 and 4 are common for most Tax saver funds. In fact some funds are 15-20Y old.

    Regarding rating – point no. 3, it may change every now and then and can not be a deciding factor.

    Thanks

    Ashal

  3. ashalanshu says:

    Dear Rajiv, what ‘ll you do if within next 1Y, this fund is ranked 2 or 20 or 100 by Crisil or any other rating agency?

    There are so many ELSS. some are running for last 15-20 years. I’m not saying that choice of Axis is wrong. I’m discussing it to understand all the things.

    Thanks

    Ashal

    1. Rajiv94 says:

      Ok. Please suggest me whether my criteria of choosing any MF is right? Or we have to keep other factors also in mind.
      looking forward to your expert guidance.

      Thanks

  4. ashalanshu says:

    Dear Patrick, I want to know, how did you select the fund fit for your investment?

    Thanks

    Ashal

    1. Rajiv94 says:

      Hi Ashal

      Iam also planning to invest in this same MF – Axis Long Term Equity Fund (G).
      My criteria of selection is this-> 1. It comes under ELSS category for saving tax also.
      2. Since it is Equity oriented MF, so with high risk it also has high returns for my long term investment horizon.
      3. Also, it has CRISIL ranked 1
      4. Also has past 5year record of giving high returns.

      Please suggest me also, if this criteria of selection is good enough or something else should be kept in mind while selection of MF.

      Thanks once again for valuable advice and guidance.

      Rajiv

    2. Patrick says:

      I have selected this fund based on its performance, alpha, beta, std deviation, sharpe ratio etc factors. and it also comes under tax saving.
      As i have also taken ICICI prudential tax plan fund which is 15-20 years old fund, so i thought to give a try to newer fund Axis long term equity

  5. ashalanshu says:

    Dear Patrick, how did you zeroed on Axis Long Term Eq. fund?

    Thanks

    Ashal

    1. Patrick says:

      Hi ashalanshu,

      I didn’t understood your question.

  6. Patrick says:

    Hi hemanth,

    I want to invest for good returns and Axis long term equity’s performance is good. But i don’t know is this risk grade is a serious parameter to think on.

    1. Hemanth Chandra says:

      Hope u know “If you take risk, then only there is a chance of good returns.”

      Also, as axis long term equity is investing in large cap, there is no much risk in it as per my view.

      Regards,
      Hemanth.

  7. Hemanth Chandra says:

    Dear Patrick,

    Risk Grade depends on the paramater that is considered for grading.

    Axis MF website has considered ‘Equity’ funds as High Risk and Debt funds as low risk and so on.

    Where as valueresearchonline has considered sectoral funds as ‘High’ Risk and mid-small cap funds as ‘Avg’ and Large Cap as ‘Low’ and so on.

    So, there is a change in the grading.

    Also, what is your idea to invest in Axis Long Term Equity ??

    Regards,
    Hemanth.

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