Axis Multi Cap Fund for Better Returns

Axis Multicap Fund for Better Returns Invest Now

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NAV : ₹18.93
NAV : ₹18.93
Axis Multicap Fund for Better Returns

The Axis multi cap fund is an open-ended equity mutual fund offered by Axis Mutual Fund.

In this blog, we will discuss about Axis multi cap fund regular plan growth, its investment approach, potential benefits, risk of investing, cost of investing and factors to consider before investing.

What Is the Axis Multi Cap Fund Regular Plan Growth?

The Axis multi cap fund regular plan growth brings together two significant features – Regular Plan and Growth option.

Understanding the Regular Plan

A Regular Plan is created for those investors who invest through a distributor. The distributor can assist you to comprehend the scheme, finalize investment process and to guide you through the options available for investment.

Understanding the Growth Option

The Growth option lets the scheme keep any investment increases, instead of making regular distributions through an income-distribution option.

Keep in mind, the Growth option does not mean that your investment will be increasing annually. As the value of the underlying investments declines, so can the NAV.

How to Invest in Axis Multi Cap Fund

Investments in the Axis multi cap fund regular plan growth can be made via an authorized mutual fund distributor or through the available investment platform which provides the scheme’s Regular Plan.

The following steps are a general outline of the process.

Complete Your KYC

Investments should be made after completing the Know Your Customer (KYC) process. You might need to give ID and address details and undergo verification, depending on your current status, and the process involved.

Ensure that your investment account information is accurate.

Choose the Regular Plan Growth Option

Look for the full scheme name and check out the plan and option before you go ahead.

If your investment preference is to choose the Regular Plan and Growth, choose the Regular Plan and Growth option. Be careful not to pick any option that includes an IDCW- or Direct Plan, just because the scheme name is similar to it.

Check out the scheme information document, riskometer, latest factsheet and expense ratio before finalizing your choice.

Select a Suitable Investment Method

This is typically an option of either SIP or lump-sum investment, depending on the current terms of the scheme.

Under an SIP, you invest a fixed sum periodically as per the plan. A lump sum investment is an investment that requires a larger amount of money to invest once.

Select the approach based on your cash flow, investment period and risk tolerance to market variability. Don’t borrow money just for an equity mutual fund.

SIP vs. Lump-Sum Investment

There are two ways to get exposure to the Axis multi cap fund, and they’re different.

FeatureSIPLump sum
Investment patternRegular installmentsOne-time investment
Initial capital requiredUsually lowerRequires a larger amount
Purchase timingSpread across installment datesConcentrated around one investment date
BudgetingSupports regular contributionsRequires available funds upfront
Market riskRemains present throughout the investmentDepends partly on the entry point and subsequent market movements
Suitable approachInvestors with regular incomeInvestors with available capital and an appropriate risk plan

SIPs can be helpful to create discipline and distribute purchase dates. A lump-sum investment puts your entire amount into the market as soon as you invest, which can work for or against you depending on subsequent market movements.

How to Evaluate Axis Multi Cap Fund Performance

Don’t take the past performance of the Axis multi cap fund as the sole indicator of its performance. The equity markets experience various phases and a brief time may not reveal the performance of a scheme over a full market cycle.

Take into account the following:

Compare Returns With the Benchmark

Check the returns of the scheme with the Nifty 500 Multicap 50:25:25 TRI during the corresponding time period. Investors can use this comparison to evaluate the fund’s performance against its benchmark.

Apply same dates and return method to both figures. Annualized returns may be helpful in making comparisons for periods of more than one year.

Review Performance Across Different Periods

Consider one year, three year and other available periods of performance, and be aware of their limitations.

Any short-term returns may be short term and temporary market conditions. More contexts can be provided for longer periods, but not future results.

Look at market corrections and recoveries as well as good market times to see how the fund has done.

Understand Risk Measures

Risk measures can help to put return data into perspective.

  • Standard deviation: It tells you if returns have been varying around the average or not.
  • Beta: Sensitivity to movement in the benchmark of the scheme.
  • Sharpe ratio: It is the ratio of excess returns to the amount of volatility taken to achieve excess returns.

The measures are most effective when applied to the same time period with the same method and when comparing schemes. There’s no magic ratio that will tell you if a fund is right for you.

Check the Portfolio and Fund Costs

Use the most recent factsheet to review the scheme’s holdings, sector exposure, allocation of market-capitalization and its expense ratio.

Your expectations for the portfolio might be different when the fund manager changes its investments. Regularly scheduled reviews can be a tool to help you grasp the changes that have taken place without causing you to make unnecessary purchases and sales.

Conclusion

The Axis multicap fund provides investors with a professionally managed equity mutual fund with exposure to large-cap, mid-cap and small-cap companies.

 The Axis multicap fund regular plan growth might be suitable for investors who invest through a distributor and do not want to see the earnings distributed in the quarterly option of IDCW.

FAQs

1. Is Axis Multicap Fund suitable for beginners?

Ans) The Axis multicap fund could be suitable for investors who are new and have an investment timeframe. The scheme is however classified as Very High risk; therefore new investors should be aware of the investment approach, charges involved and losses that can be incurred if they invest in it. If you’re not sure it is appropriate, you might want to see a financial expert.

2. What does Axis Multicap Fund Regular Plan Growth mean?

Ans) The Axis multicap fund regular plan growth refers to the Regular Plan’s Growth option. The Regular Plan is offered via distributors and the Growth option leaves investment gains in the scheme, instead of distributing them periodically. It has the potential to increase or decrease in value based on the value of the investments.

3. Can I invest in Axis Multicap Fund through an SIP?

Ans) Yes, the scheme has SIP investment facilities as per its present Terms & Conditions. An SIP enables to invest a predetermined sum periodically. While it can help promote fiscal discipline, it does not ensure profits or losses will not occur when the market drops.

4. Is Axis Multicap Fund a high-risk investment?

Ans) Yes. The risk level of the scheme identified by Axis Mutual Fund is Very High. It has a comprehensive selection of large cap, mid-cap and small-cap stocks, which can face market-related losses. Please read the current riskometer and scheme documents before investing.

5. How long should I stay invested in Axis Multicap Fund?

Ans) The holding period will vary depending on your financial objectives, risk tolerance, and the time you need to access your funds. The scheme is designed for long-term capital growth and investors should consider whether they can afford to commit themselves for the long term to cope with market fluctuations. Just because you bought the investment for a long time doesn’t mean you will get positive returns; check your investment periodically.

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