Review of Axis Long Term Equity Fund.

Are you looking for a fund that could help you save taxes and provide inflation-beating capital growth in India?

Here is one such fund that could do solve both of your purposes. We are going to review the Axis Long Term Equity Fund. Is the fund good for you?

Let us review it and find out if it is good for your hard earned money to be invested in this fund.

Axis long term equity fund growth or ALTEF option-regular plan was launched on Dec 29, 2009.

The fund has consistently performed well since its inception. The direct plan of this fund was launched on Jan 01, 2013. The benchmark index of the fund is S&P BSE 200 TRI.
It is an ELSS (equity linked saving scheme) fund which means you can save taxes if you invest in this fund.
The manager of the fund is Mr. Jinesh Gopani who has been associated with the fund since Jan 2013.

Axis long term equity fund growth option-regular plan has delivered 17.3% returns on a CAGR basis since its inception. And the direct plan of the same fund has delivered 20% returns on a CAGR basis since inception.

Expense Ratio


Index Vs. Fund

Axis long term equity fund growth option-regular plan has delivered 14.58% & 18.2% in 3 years and five years respectively.
However, the benchmark index has delivered only 14.26 % returns in five years. Here the fund beats the benchmark index by a good margin.

How Axis Long Term Equity Fund Has Performed In 2008-09 Market Meltdowns?

The fund was launched in December 2009 when the equity markets started moving upwards. So, the assessment of performance could not be exactly estimated.

What Is The Investment Objective Of The Axis Long Term Equity Fund?

Axis Long Term Equity Fund is open-ended equity linked savings scheme that provides capital growth by investing in equity and equity-related products.
For earning a good amount on your investment, this mutual fund is good for earning good returns in the long term.
The current portfolio of the fund consists of the following companies.

Is The Fund Suitable For You?

The fund is suitable for you if you want to save taxes along with capital growth in a long time. Like every equity fund is risky in the short term, this fund is not an exception.
Also, this fund has a lock-in period of 3 years so you can’t withdraw money until the locking period is over. And this lock-in period applies to all the investments in this fund.  
I want to illustrate here; suppose you invest 1000 Rs on 01.02.2011 and you get 100 units of this fund. You invest another 1000 Rs on 01.02.2013 and get 70 units.
Now you have a total of 170 units of this fund. But, you can only redeem 100 units after 3 years of investment i.e. after 01.02.2014. Your other 70 units would be redeemable after 01.02.2016.

How Can You Invest In Axis Long Term Equity Fund?

Investing in this fund is very convenient. You can visit your nearby Karvy or axis mutual fund branch and invest in this fund on the same day.
If you have not fulfilled your KYC requirement, the customer care executives there would help you. Investing in a mutual fund requires that you have completed your KYC requirements.

Frequently Asked Questions (FAQ) About Axis Long Term Equity Fund

1. How much can we invest in this fund to save taxes?
The investment in this fund is exempted under section 80C of the income tax rule. The maximum investable amount allowed under 80 C is 150000 to save taxes. So if you want to save taxes you can invest a maximum of 150000 rs in this fund.
2. Can we invest through a SIP in this fund?
Yes, a SIP can be started in this fund. The minimum SIP amount is 500 Rs. You can be an investor in this fund by investing a minimum of 1000 Rs.
3. What is the expense ratio of Axis long term equity fund?
The expense ratio of axis long term equity fund growth option regular plan is 1.88%. The expense ratio for axis long term equity fund direct plan growth option is 0.95%. The expense ratios are not firm; they are periodically reviewed, and they may change.
4. What are the entry and exit load of this fund?
Like all other open-ended schemes, the entry load is nil for this fund. The exit load is also not applicable in this fund because the units are redeemed after 3 years of minimum investment.
5. How to get axis long term equity fund nav (net asset value)?
The NAV of any fund can be found at AMFI website. NAVs are updated regularly on the AMFI website. You can also get NAV at Axis mutual fund Website.

6. Is the dividend option available?

Yes, the fund has both dividend and growth options. 

Have you invested in Axis Long Term Equity Fund? How long have you been investing in this fund? How is the performance?  You can share your views in comments.