Axis Flexi Cap Fund for Better Growth Invest Now

The Axis flexi cap fund is an open-ended dynamic equity fund which invests in stocks across market capitalizations. The investment objective is to seek long-term capital appreciation through an investment of equity and equity related instruments across market-cap segments in a dynamic mix.

It is important for the investors to know the difference between Direct Plan and Regular Plan while investing in the Axis flexi cap fund direct growth.

What Is Axis Flexi Cap Fund?

The Axis flexi cap fund is an equity mutual fund which comes under the flexi cap category. The fund also has the flexibility of investing in large-cap, mid-cap, and small-cap companies as opposed to a fixed percentage of the allocation to a market-cap segment.

Understanding the Flexi Cap Fund Category

Flexi cap funds have many options of portfolios. Depending on the investment strategy, the fund manager can allocate investments across market cap sizes of companies.

This type of flexibility would be beneficial in case of changes in the market. But there is no danger without flexibility. Investment values may rise and fall rapidly in equity markets and investments in a particular equity may vary in value.

How Axis Flexi Cap Fund Works

The fund will invest in equity and equity-related securities from all market-cap sub-segments. Exposures can therefore be big cap, mid cap and small cap companies.

This allocation may vary from year to year. One of the hallmarks of a flexi cap strategy is that they do this.

Dynamic Allocation Across Market Capitalizations

What does this mean?

Likewise, a flexi cap fund can have a mix of companies with diverse market caps to form a diverse equity portfolio.

Key Features of Axis Flexi Cap Fund

It is useful to have an understanding of the basics of the scheme before investing.

Open-Ended Equity Fund

The Axis flexi cap fund is a open-ended equity fund. Units can be bought and redeemed generally on the terms and conditions as laid down in the applicable terms and conditions of the scheme.

As primarily an equity and equity-related investor, it is essential that investors recognize that the market is volatile.

Large Cap, Mid Cap and Small Cap Exposure

One of the key benefits of investing in a flexi cap fund is its multi-capacity investing approach.

It enables investors to get exposure to various kinds of companies using one mutual fund.

A large cap company can provide the stability that is a hallmark of a long established company. A mid-cap company may offer a different growth opportunity, and a small-cap company may offer a higher growth potential, and a greater volatility.

Growth and IDCW Options

The plans offer a Growth and IDCW option in the scheme. There are both Regular and Direct Plans in the current scheme and Growth and IDCW options exist for both the schemes.

It is important to note that the investors who opt for the Growth option tend to keep their investments in the scheme without receiving periodic IDCW distributions as a separate payout in the Growth option.

SIP and Lump Sum Investment

There are various ways to invest and it is important to consider the various investment approaches depending on the financial goals.

A Lump Sum involves investing a big sum once, while Systematic Investment Plan enables investors to invest fixed sum periodically.

SIP may be beneficial for investors who seek to build a habit of investing than to pinpoint the ideal time to enter the market.

Axis Flexi Cap Fund Direct Growth vs Regular Growth

One of the most popular terms used by investors is the Axis flexi cap fund direct growth. Here are some points to understand what this means.

What Is a Regular Plan?

If investors buy or subscribe to the units of a mutual fund through a distributor, then the mutual fund has a Regular Plan.

The cost of a Regular Plan is thus different to the Direct Plan.

What Is a Direct Plan?

A Direct Plan lets investors buy or subscribe directly to the mutual fund, without going through a distributor.

Key Difference Between Direct and Regular Plans

The investment approach is similar, with the exception of how the expense is allocated.

In simple terms:

• Regular Growth: The way to invest is through a distributor.
• Direct Growth: Investor invests directly in the fund.
• Both belong to the same scheme.
• There are variations in the cost profile.
• This means that the NAVs may vary.
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Factors to Check Before Investing

If you’re considering investing in the Axis flexi cap fund, take time to investigate the name of the fund.

Investment Horizon

Typically, equity funds are for investors who plan to hold onto their funds for an extended period of time.

If you need money in the short term, think about whether or not it’s the right time to go with the ups and downs of the equity markets.

Risk Appetite

The rating for the scheme is Very High.

So you have to ask yourself if it’s something you can do without for the short term without making an emotional investment decision.

Expense Ratio

Expense ratio is the fund’s cost to run the mutual fund.

Direct and Regular plans differ in expenses and investors need to compare the most recent expense ratios before making an investment decision.

Portfolio Composition

Review current investments of the fund.

The allocation in the portfolio may change over time and investors should check the current allocation of the portfolio and not an old allocation.

Fund Performance and Consistency

Avoid asking the question, “How high were the returns of the fund?

Also ask:

• How did it do when the markets were down?
• How did it do in comparison to its benchmark?
• Has the approach to investing been the same?
• Would it be a good addition to my current portfolio?
• Am I able to hold through the necessary time frame?

Conclusion

The Axis flexi cap fund provides the investors with exposure to the large cap, mid cap and small cap stocks in a dynamically managed portfolio.

Though the Axis flexi cap fund direct growth is a scheme of the same funds, the latter is not the same as Regular Growth.

FAQs

1. What is Axis Flexi Cap Fund?

Ans) Axis flexi cap fund is an open-ended dynamic equity scheme which invests in large cap, mid cap and small cap companies. It aims to achieve long-term capital growth through a mix of equity and equity-related assets in its portfolio, across market capitalizations.

2. Is Axis Flexi Cap Fund suitable for long-term investment?

Ans)It could work for the investor who wants to buy and hold the stock over an extended period, and is comfortable with the volatility of the stock market. The scheme is classified as “Very High” risk and investors are advised to take into account their risk tolerance and investment term before investing.

3. What is the difference between Axis Flexi Cap Fund Regular Growth and Direct Growth?

Ans)Both are schemes that are available, but investment routes and the cost are different. Regular plan investments are conducted through a distributor and direct plan investments are made direct to the fund, without going through a distributor.

4. Can I invest in Axis Flexi Cap Fund through SIP?

Ans)Yes. SIP is one of the investment strategies that can be followed by investors. SIP enables investing a fixed sum periodically instead of investing in one go. But SIP does not assure any returns nor does it remove risk of the market.

5. Is Axis Flexi Cap Fund risky?

Ans)Yes. At present, Axis Mutual Fund has assigned Very High risk to the scheme. The NAV of the fund may keep changing as it invests in stocks of different market cap, as the stock markets change. Investors should make sure to read the documents relating to the scheme thoroughly, and determine if the scheme is suitable for their level of risk.