Why to Invest in Axis Long Term Equity Fund?
Mutual funds are the trending investment options that promise wealth generation in the long run. An equity fund is a type of mutual fund that invests only in equity stocks. It is considered as one of the best options to gain high returns and accelerate your wealth-building efforts. The money you invest is managed by qualified and experienced fund managers from Asset Management Companies (AMCs).
Why should you invest in Equity funds?
Equity funds attract budding investors as well as seasoned investors due to the following reasons:
- High Liquidity: You can redeem your investment in equity funds at any time (except for Equity-linked Savings Schemes). This serves as a great advantage for people with fluctuating incomes.
- Portfolio Diversification: When you invest in the stock market, you are exposed to a certain amount of risk. When you are investing your money into equity funds, you are actually investing in multiple stocks to minimize that risk.
- Regular Investment: In the case of Systematic Investment Plan (SIP), you develop a habit of investing at a regular interval, which ensures wealth creation in the long run.
- Tax Exemption: Under section 80C of Income Tax Act 1961, the Government of India provides tax exemption for equity-linked saving schemes (ELSS).
- Professional Management: Your equity funds are managed by professionally experienced fund managers. There are several Asset Management Companies (AMCs) that guide you to invest your money wisely in equity funds. One such popular fund manager is Axis bank.
Why is Axis long term equity fund a good fund to invest in?
Mutual fund investment in Axis bank has delivered promising returns since its first scheme launch.Axis long term fund is one of the best Axis Mutual funds, owing to its high returns and consistent performance. It is best suited for individuals looking for accelerated wealth creation in the long run for important goals like retirement and higher education of children.
Axis Long Term Equity Fund has shown remarkable growth since its inception on 29th December 2009. As per the track record of the past five years, it has an annual return rate of 11.22%. In the year 2019, it had a good return rate of 14.69%. For instance, if you had invested Rs. 10000 on 1st January 2019, your invested money would reap a good amount of Rs. 11469.
Behind the success of this Axis fund, there are the fund managers who have made efforts to gain the trust of the investors with consistent returns. This equity fund has been successfully managed by Jinesh Gopani since April 2011.
Reasons to invest in Axis Long Term Equity Fund
Mutual funds planning is a tricky job as you are exposed to the risks of the market. If you want to reduce your risk, the Axis bank mutual funds scheme serves as the best option. Here are the few reasons why you can invest in Axis long term equity fund.
- High returns in the long term: This equity fund has shown a considerably high return rate in the long run. Its annualized returns for the last three years is 17.41%.
- Low NAV: It generally has a low net asset value (NAV), which allows investors to buy more units in less money. The NAV per unit on 14th January 2020 was Rs. 50.0577. If someone would invest Rs. 1000 on 14th January, he would get around 20 units. Low NAV allows investment with little money.
- Moderate risk: This equity fund is subjected to market-linked risk. As per the risk profile, investing in this equity fund involves moderately high risk.
How to invest in Axis long term Equity Funds?
Mutual fund investment in Axis bank can be made via the Asset Management Company (AMC) website directly or via online investment platforms. Steps involved in both cases are as follows.
Step 1: Open the AMC website, which is the official website of Axis mutual fund in this case.
OR visit an online investment website.
Step 2: Fill in your personal details: You need to fill in your name, age, phone number, email address, PAN number, and bank account details. These are required to register or open an account. There is a verification of details after this. You can proceed to the next step only after the verification is complete.
Step 3: Find and select the mutual fund you want to invest in, which is Axis Long Term Equity Fund in this case. You will get all the details about this fund which you can go through. You need to notice the NAV on the day you are investing.
Step 4: Choose the kind of investment: Lumpsum or Systematic Investment Plan (SIP).
Step 5: Fill in the amount and the tenure of your investment
Step 6: Make the payment through debit card, credit card, net banking or other online payment options.
Step 7: You will receive a confirmation mail and message confirming you about the purchase of the equity fund and the units allotted. The unit is calculated by dividing your investment amount by the NAV on the day you made the investment.
SIP vs Lumpsum investment : Which Mode To Choose For Investing In Axis?
As we are discussing mutual funds planning, it is essential to know about the two investment modes, i.e. Lumpsum and SIP investment. Lumpsum is a one-time investment for a long period whereas SIP involves investment at a regular interval for a certain period. SIP serves as a better investment option as it helps to mitigate the risk of market fluctuation and allows averaging investment cost fetching a greater return on the invested money. Thus undoubtedly when it comes to investing in equity funds such as Axis long term equity fund, choosing the SIP route will be beneficial.
To sum up, for people looking for accelerated wealth creation, Axis Long Term Equity fund could be a good bet. The fund has seen a consistent past performance, and hopefully will see a strong streak in 2020 too. Please carry out due diligence before selecting any fund to invest in and invest according to your investor profile only.