Understanding Axis Small Cap Fund
Are you looking to invest in companies that will give you higher returns? If yes, then Axis Small Cap Fund will help you to do it.
It is a small-category equity fund that was started by Axis Mutual Fund in the year 2013. The fund aims to solve the problem of making higher returns. It primarily focuses on investing in small-sized companies that will become mid-cap tomorrow. In simple words, it targets companies that are in their growth phase and focusing on becoming large companies. This is the reason the fund has delivered higher returns to investors in the past few years. With strong returns and better risk management, the fund became a top choice in small cap funds. The biggest proof of its growth is Axis small cap fund regular growth NAV (Net Asset Value) which is Rs. 103.98 as of February 2025. It will be helpful for you to know the secret behind its growth and how investing can be beneficial for you.
In this article, you will learn everything about the Axis small cap funds. You will cover its investing strategy, expert fund management and why it is a good investment for you. Let's explore.
Investment Strategy of Axis Small Cap Fund
The Axis small cap scheme follows a proven investing strategy to make high returns. It focuses on small companies for investment that have the potential to become mid-cap in future. Apart from small cap companies, it also invests in mid and large companies stocks for balanced growth. If you look at its asset allocation, the fund diversifies its assets 50-60% to small cap companies and 20-30% to large and mid-size companies.
It follows an active management approach to adapt growth opportunities. A team of experts actively adjust the portfolio according to market conditions. This approach helps to leverage growing sectors by adjusting the portfolio. To achieve higher risk, the Axis small cap funds uses bottom-up stock selection. It analyses every company individually to identify the best stocks. This approach helps the fund to reduce the risk and achieve higher returns in the long term.
This effective strategy of investment helped the fund to achieve high returns in mutual funds while managing the risk. If you are planning to invest in the fund, its proven strategies will definitely help you to maximise your investment.
Who is the Fund Manager of Axis Small Cap Fund?
Mayank Hyanki is the person who has been managing the Axis small cap fund since 2023. He comes with 17 years of experience in equity research and portfolio management. Currently, he is managing an AUM (Asset Under Management) of Rs. 23,142 crores.
If you look at his academic side, he comes from a strong educational background. He did a Bachelor of Technology and a Post-Graduate Diploma in Management. Over the past few years, he earned the trust of many investors. The reason of Axis small cap fund regular growth is Mayank's strong investing strategy. He is responsible for making investment decisions, selecting stocks and adapting new strategies. He follows a bottom-up stock selection strategy to analyse every individual company. This strategy helps him to identify the right company stocks that have long-term growth potential.
His expertise in fund management and stock selection helped to grow the Axis small cap fund regular growth NAV over time. By using this strategy, he helped thousands of investors to grow their money.
Why Axis Small Cap Fund is Good to Invest in 2025?
In 2025, if you are planning to start your investing journey, then here are some of the factors that shows why you should choose Axis small cap fund for investment:
1. Well Diversified Portfolio
If you want your investment portfolio to get diversified in different sectors to benefit sectoral growth, then the fund is a good choice. It smartly diversifies your portfolio into different sectors to make higher returns.
2. Affordable Investment
The fund gives you an affordable investment plan to make your investment easy. It helps you to invest through a SIP so you can grow your money by investing a fixed amount at set times.
3. Quality Stock Selection
As you know, the fund targets quality stocks to generate long-term wealth. This helps the fund to reduce the risk and generate long-term wealth by leveraging the growth potential of quality small-cap stocks.
Who can Invest in Axis Small Cap Fund?
The Axis small cap fund regular growth unique philosophy and investment focus makes it suitable for investors who are:
1. Long-Term Investors
The fund invests in small-cap companies which causes it to face higher volatility in the short term. This is why the fund focuses on holding the investment for the long term to reduce this risk. Investors who have 5-7-year investment plan can invest in the fund.
2. Regular Investors
If you are an investor who prefers investing through a SIP, then investing in the fund is a great choice for you. It helps you to invest through a systematic investment plan where you can grow your money without investing a large sum in the fund.
3. High-Risk Takers
To generate higher returns, the fund focuses on small cap companies that are higher volatile compared to the large and mid cap. This volatility sometimes causes bad performance in the short term. You can invest in the fund if you have a higher risk tolerance and manage short-term losses.
Conclusion
In short, the Axis small cap fund provides investors a great way to make great returns. After reading this article, you can understand how the fund is a valuable investment for beginners and seasoned investors. The thing that makes it different is its risk management ability. Its diversification strategy and quality stock selection not only help to make great returns but also mitigate the risk.
The fund also makes it easier for investors who do not prefer to invest a large sum at once. It provides a SIP plan that you can choose to start your investment by investing a fixed amount at set times. So if you are looking for an investment that makes you high returns without affecting your budget, then investing might be a profitable choice for you.
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