Should I sell the Axis Long Term Equity Fund? (2024)

FAQs

Should I sell the Axis Long Term Equity Fund? ›

If you don't want to save taxes under Section 80C by investing in ELSS funds, there is no need to invest in them. However, it is not necessary to sell your investments in ELSS funds. You can continue to hold your investments in these schemes like any other equity schemes as long as they are performing well.

However, the fund house is still struggling to regain its footing since allegations of front-running and price rigging surfaced in May 2022. Following Securities Exchange Board of India's (SEBI's) interim order, which highlighted irregularities within the fund house, a wave of top management exits ensued.

Over the past 3 to 5 years, this fund hasn't done as well as we'd like compared to a standard benchmark. However, if you are concerned about the fund's recent underperformance or if you need to access your money in the near term, you may consider exiting the fund.

Market-related factors: Growth vs. Value Strategy: Axis MF heavily favored growth stocks during a period when the market tilted towards value stocks. This mismatch hurt their performance compared to benchmark indices and category averages.

Stability & Growth

Long-term investments offer stability and aid in reaching financial goals. Potential for substantial wealth accumulation by staying committed to your financial objectives.

However, it is not necessary to sell your investments in ELSS funds. You can continue to hold your investments in these schemes like any other equity schemes as long as they are performing well. It is true that Axis Long Term Equity Fund has been under performing for a while.

Market Volatility and Risk Management

If a fund consistently underperforms over multiple periods and fails to deliver satisfactory returns, consider exiting the investment. Research and select funds with a similar investment objective but better track records and performance history to redirect your investments.

As a company, Axis Mutual Fund is one of the largest Asset Management Companies (AMCs) in the country, regulated by SEBI. As far as safety is concerned, it will depend on how you define it. No AMC can guarantee the safety of your capital when it comes to market-linked investments like mutual funds.

1. Current NAV: The Current Net Asset Value of the Axis Bluechip Fund as of Jul 22, 2024 is Rs 59.12 for Growth option of its Regular plan. 2. Returns: Its trailing returns over different time periods are: 25.29% (1yr), 11.97% (3yr), 15.21% (5yr) and 12.98% (since launch).

Note. By selling off mutual funds, you lose their potential for significant growth over time, especially if you have been reinvesting dividends to automatically buy more shares. In addition, you're only allowed to contribute so much to an IRA each year, so you won't be able to make up for your withdrawals later.

Why is Axis equity fund falling? ›

Axis Mutual Fund's underperformance can be attributed to a confluence of factors, including an unwavering growth strategy in a value-oriented market, a bold approach during a cautious period, and the damaging front-running scandal.

Losses in mutual funds are expected as it depends on market conditions, but redeeming in haste can bring the losses in reality. Some reasons for losses in mutual funds are lack of knowledge, unrealistic expectations, etc.

Axis Mutual Fund front-running case: Former chief trader spilled insider information to links in Dubai. Axis Mutual Fund front-running case has been under the regulatory scanner since early May 2022. On May 28, 2022, Sebi conducted searches at multiple premises associated with 16 'suspected entities.

Axis Long Term Equity was among the top 10 ELSS in 2018, 2019 and 2020. On the back of this stellar performance, the fund has become extremely popular and investors have flocked to it in last few years. Cut to 2022. It's the worst-performing tax-saving scheme.

Poor investment choices and subpar stock selection can drag down the NAV. The fund manager's decision to have an overweight or underweight in stocks / sectors/ asset classes can impact the NAV depending on how these perform. Cash flows into and out of a fund affect the fund's NAV.

Axis Mutual Fund front-running case has been under the regulatory scanner since early May 2022. On May 28, 2022, Sebi conducted searches at multiple premises associated with 16 'suspected entities.

One of the prominent reasons for mutual fund loss is a need for more knowledge about the investment options and market. Individuals who invest in mutual funds without proper research often end up in a situation where they have to face a loss of money.