The Axis Flexi Cap Fund by Axis Mutual Funds serves as an equity mutual fund. The fund was founded on November 20, 2017. Hitesh Das and Shreyash Devalkar are now managing it. To this date, it remains the most popular Flexi cap fund among investors. But why is that? This article will help readers to understand some of the advantages.
Who should make Axis Flexi Cap Fund investments?
Before we get to the advantages of this fund, we need to know those who want to invest in this fund should do so if they want to put down money for a minimum of three to four years. While they hope for a healthy return. Simultaneously, these investors must make sure they are ready for the possibility that some of their holdings may see slight losses.
Advantages of the Axis Flexi cap funds:
Investing in Axis Flexi Cap Funds can offer several benefits.
- Diversification: It is a broad-based equity fund that makes investments in businesses of all sizes. Axis Flexi Cap Funds invest across several market capitalizations — large-cap, mid-cap, and small-cap stocks giving a diversified portfolio. This approach helps ease risks associated with investing in a single segment of the market.
- Flexibility: The fund manager has the flexibility to shift allocations between different request caps based on market conditions as well as opportunities, potentially enhancing returns and managing pitfalls better than a fixed market cap fund.
- Professional Management: Managed by educated professionals at Axis Mutual Fund, these funds profit from expert analysis and exploration, aiming for optimal asset allocation and stock selection.
- Growth factor: By including small and mid-cap stocks, which frequently have advanced growth potential compared to large-cap stocks, the fund aims to capture growth opportunities across the market spectrum. Compared to pure mid-cap or small-cap funds, investing in a flexi-cap fund has less risk because the fund manager has more freedom to seize the greatest opportunities when they arise in the market.
- Threat Management: The diversified nature of the fund helps in spreading threats across various sectors and market caps, which can be profitable during market volatility. constantly works to provide investors with risk-adjusted returns by investing in high-quality businesses with promising development potential.
- Long-term Wealth Creation: Flexi cap funds, with their dynamic investment strategy, are well-suited for long-term investors looking to raise wealth over time. They can adjust to changing market conditions, which can be salutary for long-term performance. Equity has the ability to outperform inflation and produce long-term wealth. To minimise risks related to market volatility and produce long-term returns, the flexi cap mutual fund seeks to provide investors with an optimal blend of stocks.
- Tax Efficiency: Investments held for further than one year in equity-oriented funds like Axis Flexi Cap Funds are subject to long-term capital earnings tax, which is fairly lower than short-term capital gains tax, making it a tax-effective investment option for long-term investors.
- Track Record Axis Mutual: The Axis Mutual Fund has a strong track record of managing equity funds, and their flexi cap funds frequently profit from this expertise, aiming to deliver competitive returns to investors. On top of that, long-term objectives include retirement, the education and future of one’s children, and any other long-term growth that calls for a wealth-generation strategy.
Conclusion
Axis Flexi mutual funds are one of the best equity funds out there. Investors often choose this fund as their aim. Although, before investing, investors need to consider their investment aims, and risk tolerance, and consult with a financial advisor to ensure that the fund aligns with their overall investment strategy.