What is Axis Focused 25 Fund?
Introducing Axis Focused 25 Fund
Axis Focused 25 Fund is an open ended equity scheme investing in maximum 25 stocks investing in large cap, mid cap and small cap companies.
Why Axis Focused 25 Fund?
- Pure bottom-up, best-ideas approach with high active allocation relative to the benchmark while maintaining prudent diversification
- Active high conviction investing strategy
- Risk management embedded in the investment process
- Concentrated focus on sustainable businesses
Where does this fund focus?
- Portfolio focus
- Axis Focused 25 Fund is a scheme which invests in a concentrated portfolio of high conviction ideas with max 25 companies
- While Axis Focused 25 Fund offers the benefit of higher exposure to the best ideas, the portfolio is well diversified across sectors to manage risk.
- Risk management focus
- Aims for lower standard deviation and beta with tight tracking error as compared to the benchmark
- What do we look for?
- Target for companies that deliver ROE/ROCE’s over the medium to long term on a sustained basis
- What do we avoid?
- We typically avoid PSUs
What is the Portfolio Strategy?
The portfolio is designed for risk adjusted returns over market cycles. The fund manager looks at 3 broad buckets while constructing the portfolio.
Core Portfolio: Allocation: 50-60%
- Steady compounders generating reasonable returns with low volatility.
- Horizon: Medium term (3-5 years).
Alpha Portfolio: Allocation: 20-25%
- Companies having cyclical tailwind
- Horizon: 18-24 months
Emerging themes: Allocation: 20-25%
- Generating break-out growth going forward.
- Horizon: Long term 5+years
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.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.