Axis Small Cap Mutual Fund Review: Outperform on the downside

ET Wealth works with Value Research to analyze the best mutual funds. We look at key fund fundamentals, portfolio and performance to help you make an informed investment decision.

HOW HAS THE FUND RETURNED

WHERE THE FUND INVESTS

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BASIC FACTS

  • Launch date: NOVEMBER 29, 2013
  • Category: Stocks
  • Type: small cap
  • AUM (As of Nov 30, 2021): Rs 7,695 crore
  • Benchmark: Nifty Smallcap 250 Total Return Index

WHAT IT COST

  • NAV (As of January 5, 2022)
  • Growth option: Rs 62.66
  • IDCW: Rs 38.81
  • Minimum investment: Rs 5,000
  • Minimum SIP amount: Rs 500
  • Expense ratio (as of November 30, 2021) (%): 1.91
  • Exit charge: for shares exceeding 10% of the investment, 1% will be charged for redemption within 365 days

The Head of Funding: Anupam Tiwari

Duration: 5 years, 2 months

Top 5 sectors in the portfolio (%)

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Top 5 stocks in portfolio (%)

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Recent Portfolio Changes

  • New entrants: Deepak Fertilizers & Petrochemicals Corporation, Data Patterns (India), Go Fashion (India), SJS Enterprises.
  • Increase in allowance: Aditya Birla Sun Life AMC, Balrampur Chini Mills, Birlasoft, MTAR Technologies, SRF, Blue Star, Fine Organic Inds, Galaxy Surfactants, Jamna Auto, Krishna Institute of Medical Sciences, RHI Magnesita, Sansera Engineering, Sudarshan Chemical, Vijaya Diagnostic Center.

How risky is it?

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Source: Value Research

Should I buy?

This small-cap fund retains a significant presence in mid-caps, like many of its peers. The fund manager selects quality and scalable companies led by good management with a track record of good execution and good governance. Given the inherent volatility of the small cap sector, he prefers to manage a low beta portfolio. He is also not shy about taking money calls when market conditions demand it. This approach helped it outperform strongly in 2018 and 2019, but the fund has since fallen behind. Yet its superior downside performance relative to its peers gives it an edge over entire market cycles.

Dolores W. Simon