Axis Long Term Equity Fund-Growth is a long-term equity ELSS fund in the range of Axis Mutual Fund. This fund has been in existence for 13 years and two months, having been launched on December 17, 2009. On December 31, 2022, Axis Long Term Equity Fund-Growth had assets under management (AUM) of 28.865 crores, which is a moderately sized fund in its category. Its expense ratio is 1.65%, higher than those of most other ELSS funds.
Axis Long Term Equity Fund Growth has returned -7.04% over the past year. Since its launch, it has generated 83% returns on average per year. The fund has doubled its investment every seven years.
The Axis Long Term Equity Fund's ability to consistently generate returns is lower than most funds in the same category. Its capacity to limit losses in a declining market is limited.
An axis long-term equity fund portfolio includes the holdings of Avenue Supermarts Ltd Bajaj Finance Ltd., Tata Consultancy Services Ltd., Kotak Mahindra Bank Ltd., and such other companies.
Strategy for investing
As part of the scheme, a broad range of equity and equity-related securities will be utilised to generate regular long-term capital growth. The scheme will make investments in companies that are positioned well for growth and have a viable business model in order to maximise returns. The turnover ratio of Axis long-term equity funds is 17.00%. The turnover rate for the category is 65.79 percent. In the past year, the fund manager updated the axis long-term equity fund portfolio fewer times than his peers. (I.e., the portfolio manager held stocks and bonds in his or her portfolio for a longer time period than his or her peers.) Stocks included in the Axis long-term equity fund portfolio come from a variety of industries, such as financial services, technology, healthcare, chemicals, and others.
Aspects of suitability
As long as you are able to commit to investing for a period of five years or more, you can expect gains that are capable of outperforming inflation rates. In addition, you can expect returns from fixed-income options. In addition, there is a tax benefit as well. In a given year, an investment of up to Rs 1.5 lakh in eligible securities, such as this fund, is exempt from income tax under Section 80C of the Income Tax Act, 1961.You should be prepared for ups and downs in the value of your investment along the way as well. You should also be aware that you cannot withdraw funds from this fund before a period of three years has passed since your contribution.
The tax treatment of capital gains
In a financial year, profits up to a limit of Rs 1 lakh are tax-free. The reason behind this is that mutual fund units are typically disposed of one year after they have been acquired. Taxes on gains over Rs 1 lakh are imposed at a rate of 10%.
In the case that the mutual fund units are sold within a year of the date of investment, the gain is taxed at 15%.
You will not be obligated to pay any taxes on the units as long as you keep them.
What is the tax treatment of dividends?
Those who qualify for dividends will receive them and they will be recorded in the investors' incomes. They will be subject to tax on the basis of the tax slabs based on the dividends investors receive. It is also pertinent to note that if an investor earns dividends in a given year exceed Rs. 5,000, the corporation will also deduct a source-deducted tax of 10% as part of the dividend payment.
Conclusion
It is the regular plan of the fund, which is called Axis Long Term Equity Fund-Growth. As a participant in this plan, you are expected to pay an annual fee of 1.65%. On the other hand, if you opt for the direct plan available on ET Money, you will have to pay a fee of 0.79%. In other words, there is a decrease of 0.86%.
Regular plans are usually more expensive because, when you buy them, the fund pays the agency a commission. It is crucial to note that this is an additional expense of the fund, and for this reason, the fund will take an increased amount from the returns generated by the investments in order to defray this cost.
Due to the direct plan's lower annual cost and its lower annual expense ratio, you will be able to earn 0.86% if you select the direct plan of the Axis Long Term Equity Fund Growth.