You must have heard about small-cap funds that offer inflation-beating growth. These fund caps, such as Axis small cap fund, are great investment options for someone looking for a short duration of a minimum of five years. In addition, you can invest such funds in smaller companies listed on the exchange.
About Axis Fund:
Axis fund was launched on 29th Nov 2013 and is an open-ended small-cap equity scheme. The fund belongs to the mutual fund house of Axis.
Some of the Critical Highlights of Axis Small Cap Fund:
Axis mutual fund has always been among the most popular funds in which people like to invest regularly. And some of the key reasons for its popularity are:
- Net Asset Value:
The NAV of Axis small cap fund is currently at Rs. 62.06 as of 28th Feb 2023. You must pay only Rs. 62.06 to buy an Axis mutual fund. The NAV of a fund increases due to its past performance and how long they have been in the market. - Returns:
This mutual Fund has had a trailing return of 23.09% since its launch, while its category returns are 31.14% for the 3-year return period. It shows that the company has offered good returns since its inception. - Size of Axis mutual fund:
As of 30th Sep 2022, the regular plan of this small cap fund had an asset under management worth Rs. 10761.13 crores. Since the fund holds such a vast amount, it will stay in the market for a long time. - Minimum Investment:
The minimum amount you need to invest in axis funds is Rs. 5000, with a minimum additional investment of Rs. 100 only. With a minimum amount not too high, it is one of the affordable options for the public in general.
Some of the tax benefits offered by Axis fund:
Some of the things related to tax listed that should be considered before investing in an axis mutual fund are as follows:
If you redeem your units within one year of investment, the gains will be taxed at 15% per short-term capital gain tax - STCG.
If you redeem your units after one year of investment, in that scenario, gains of up to Rs. 1 lakh from those units in the financial year will be exempted from tax.
All the gains above Rs. 1 lakh will be taxed at 10% per the long-term capital gain tax.
The dividend income of this fund will be added to your income and taxed according to your tax slab, and if the income is more than Rs. 5000, the fund house will deduct a 10% TDS on this income.
Looking at the tax offered by this mutual fund, people can show interest in investing in it.
How has the fund performed in different categories?
A fund is generally compared with others and looked at as whether it is good from an investment point of view. This comparison happens on different parameters, some of which are as below:
- Fund Size:
Axis has been a category leader on this metric compared to others. - Outperformance:
The fund is satisfactory in the outperformance consistency metrics. - Rolling returns:
According to NIFTY Small-cap 250 TRI benchmark, the average return is 8.96%, whereas, for the Axis, it was 17.82% (as of 13th Feb 2023).
Final Thoughts:
If we go by the trailing and rolling returns, the mutual fund has delivered significant returns to its investors compared to other NIFTY small-cap 250 TRIs. Therefore, it is not incorrect to say that it is a good investment for someone willing to invest for at least a minimum period.