Bluechip funds are most investors’ favourite funds as these funds offer higher returns compared to most of the other equity mutual funds but without risking the investor’s portfolio much. At present, out of the top bluechip mutual funds, Axis bluechip fund direct growth and Mirae asset emerging bluechip fund are the top performing funds.
In this article, you will read about both funds in detail and how they are different from each other.
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Axis bluechip fund’s direct growth has 87.49% of its assets in equities and equity-related instruments. Out of this, 75.04% is invested in the equities and equity-related instruments of large-cap companies, while 3.25% is in mid-cap companies. The fund has just 0.62% invested in debt instruments at present, and that is also into government securities.
Mirae asset emerging bluechip fund, on the other hand, has 98.74% of the asset under management invested into equities of domestic companies. Out of which, 43.84% is invested in large-cap companies, 24.62% in mid-cap companies, and 8.47% in small-cap companies. This is the reason why this fund is known as the Emerging bluechip fund, as it not only invests in large-cap bluechip companies but also in those mid-cap and small-cap which has the potential to emerge as bluechip companies.
Axis Bluechip Fund investing mostly in large-cap companies are stable and not affected much by volatility. Thus this fund is suitable for people looking for the lower risk involved and average return. On the other hand, Mirae Asset Emerging Bluechip fund has a significant proportion of mid-cap stocks in it which makes the fund bit riskier but also offers higher returns. Thus, this fund would be great for people with a higher risk appetite and desire for higher returns.
Axis bluechip fund’s direct growth has been offering an average return of 15.58% per annum since its launch. If you compare it with the category average which is 14%, then the fund has outperformed in its category. M
On the other hand, Mirae Asset Emerging Bluechip Fund has been offering an average annual return of 23.15% since its inception while the category average is 17.41% only.
Talking about the 5-year annualised return, Axis Bluechip fund has been offering 14.65% per annum while Mirae Asset emerging bluechip fund has been offering 16.40%.
You can see that the returns offered by Mirae Asset Emerging bluechip fund are higher than the Axis Bluechip fund however, you need to keep in mind that the risk factor is also high in Mirae Asset emerging bluechip fund.
The expense ratio of the Axis Bluechip fund is 0.52% for the direct plan while it is 0.69% for the Mirae Asset emerging bluechip fund for the direct plan.
Axis Bluechip Fund has ICICI Bank Ltd., where it has invested 9.75% of its total holdings, then there is Bajaj Finance Ltd., where the fund has invested 9.5% of the AUM, followed by Avenue Supermarts Ltd., where it has 7.18% investment, then there is Infosys Ltd. where the fund has invested 7.09% of the total holdings and HDFC Bank Ltd. in which the fund has 6.78% of the investment. These are the five top holdings of the Axis Bluechip Fund.
Mirae Asset Emerging Bluechip Fund has also ICICI Bank Ltd. as the top holding, but it has only 5.71% invested in this stock. Then has HDFC Bank Ltd., where it has another 5.27% of its total holdings, then there is Axis Bank Ltd., where it has invested 4.15%, followed by Infosys Ltd., where it has 4.09%, and then State Bank of India, where it has 3.82%.
Though four of the five top holdings of both the funds are the same, the percentage they have invested in each of the companies is different.
Which one of these two funds is the best?
It is difficult to point out which one of these two top blue chip funds is best as it varies from one investor to another. To choose the right fund which will be best for your portfolio, you need to evaluate how much risk you can take, how long you can stay invested, your investment goals, and the returns you need.
Both Axis bluechip fund direct growth and Mirae asset emerging bluechip fund are the best performing funds in their respective category. While there are certain differences in the asset allocation, performance, and expense ratio, the basic investment objective of both the funds is the same, which is to accumulate wealth over the long term.