Two of the top three best performing mutual funds this year belong to Axis Mutual Fund.
The net asset value of UTI Bluechip Flexicap Fund has risen the most so far in 2018 (excluding thematic, sector and schemes focusing out of India), according to Bloomberg data. Axis Multicap Fund and Axis Equity Fund follow close behind.
The UTI Bluechip Flexicap Fund has been merged with UTI Equity Fund, effective May 3, to comply with market regulator Securities and Exchange Board of India’s re-categorisation norms for mutual funds.
Just like the benchmark NSE Nifty 50 Index, all three funds are skewed towards financial stocks, with HDFC Bank Ltd. being the common thread among them. Maruti Suzuki India Ltd., which has fallen nearly 9 percent in 2018, is a top holding for both Axis Mutual Fund schemes.
Here are the schemes top holdings and their performance so far this year.
“We look for businesses that have sustainable growth drivers and a long runway for future growth, and therefore we avoid playing cyclical themes,” said Ajay Tyagi, fund manager of UTI Bluechip Flexicap Fund and UTI Equity Fund, UTI AMC. “The fund follows an undiluted bottom-up approach.”
“We avoid non-secular sectors,” Jinesh Gopani, head of equities at Axis Mutual Fund told BloombergQuint in an email reply. “This has helped us to focus on long-term wealth creation.”