I would like to know your opinion about investing in Axis Bluechip Fund.
— Avya Garg
Harshad Chetanwala, Co-Founder of MyWealthGrowth a mutual fund advisory firm, based out of Mumbai responds:
Axis Bluechip Fund has been a good investment option for its investors over years. The fund continues to be one of the best funds in the large cap category across different parameters despite its recent under-performance compared to its peers. The fund held around 10% – 20% cash between April to July 2020, while most of the other funds were invested more in equities. The decision of any fund to be invested in equities or hold cash is based on the fund manager’s views on the market conditions. The market continued to surge during these months and being in cash would have hurt the performance of the fund. However, Axis Bluechip Fund has performed well across different market cycles over the period of 10 years and one should not judge the fund on the basis of near-term under-performance. Hence, you can consider investing a small allocation in Axis Bluechip Fund and see how it performs compared to its peers and then increase your allocation in the fund.