Analyzing Axis Small Cap Fund Stellar 21.83% Gain of 5 Years
Finding the most promising mutual fund scheme is very tricky. Are you facing the same problem?
If yes, then Axis Small Cap Fund can solve your problem. The scheme has provided returns as high as 27.74% on 3-year investment plans while managing an AUM worth Rs.20,954 crores.
Such promising data and yet you are not investing in the fund, don't you trust it? If not, it is understandable. No one wants to invest their hard-earned money without any concrete data.
In this article, you will get to know why the Axis Small Cap Fund can give you great returns on your investment. So, let's start our journey by knowing something about the scheme first.
What is Axis Small Cap Fund?
Launched in 2013, the scheme mainly invests in small-cap companies. It focuses on generating long-term capital gains through its diverse portfolio:
Background
Axis Mutual Fund manages the scheme and it is an open-ended Equity Mutual Funds scheme. The fund has shown an exciting performance of CAGR of 25.36% since its inception. Around 17 lakh investors have actively invested in the fund through SIPs.
As of December 2024, the Axis Mutual Fund scheme has managed a relatively lower expense ratio of 0.55%. A lower expense ratio means a larger chunk of your investment is being invested.
The current NAV of the fund is Rs. 96.18 for growth options. Overall, the Mutual Funds scheme has been performing quite exceptionally. Axis Small Cap Fund has given more than 10%, 15%, and 24% returns on 1-year, 3-year and 5-year investment plans respectively since its launch.
This much performance-related data should be enough to strike curiosity within you. So what are you waiting for, start investing in Axis Small Cap Fund as soon as possible.
But if you still are not satisfied, then let's go through the fund's portfolio so that you can have a broad idea of where your money gets invested.
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Portfolio Analysis
The scheme has invested in various sectors like financial, industrial, materials, etc. This makes the scheme one of the Best Small Cap Mutual Funds in 2025. If you see the chart below, you will find that the fund has invested its highest chunk in financial sectors. This is because the sector is very promising.
The above chart shows the Axis small cap fund has distributed its portfolio in the following manner; a maximum allocation of 27% is invested in the financial sector, 22% in industrial sectors, 19 in materials, 16% in consumer discretionary and 16% in the healthcare sector.
Axis Small Cap Fund: Performance Analysis
According to the latest data, the Net Asset Value (NAV) of the fund is Rs. 111.90. This much NAV itself indicates extraordinary performance. Axis Small Cap Fund NAV history suggests that it has been performing very well since its inception.
The fund has been giving higher annual returns for the past 1 year and 3 years. Now, let's analyze the latest data so that your doubts about the scheme will be further solved.
Rolling Returns and Consistency: Axis Small Cap Fund
Rolling returns of the Axis Small Cap Fund for a 3-year plan is 20.95% with a consistency of 82.5%. In the 5-year plan, the fund has given 21.83 returns with 92.43% consistency.
Now, let's see where the peers stand. ICICI Prudential Small Cap Fund gave around 18% returns with 65.51% consistency. In the 5-year plan, the fund gave even lower returns around 16% with a consistency of 75.17% only.
If you see the graph, the benchmark for the fund is 19.52% returns in 3 years with 69.09% consistency. And the returns in 5 years are 14.2% with 59.12% consistency. Now compare the benchmark with both of the mutual funds.
Did you notice something? Yes, the Axis Mutual Fund has outperformed its peers in both plans of investments.
Pro Tip: Level up your portfolio with the Step Up SIP Calculator within minutes.
So, why don’t you start investing in the scheme and find the benefits for yourself? It does not matter whether you choose the 3-year plan or the 5-year plan. One thing is sure you will earn amazing returns on your investment.
SIP Returns of Axis Small Cap Fund
You can ignore rolling returns, but you cannot ignore SIP returns. As an investor, you are aware of the fact of how important SIP returns are to determine a fund's performance. So let's see what the data is telling.
The fund has managed to give 16.79% returns in the 3-year plan and 21.83% returns in the 5-year plan. Now if you see the category average for both of the plans of investment. You must be thinking about how good these returns are. This is a genuine concern. Don't worry, let's find out together.
See, the last few years were not so easy. You have seen the global pandemic, the Russia-Ukraine War, etc.
These events have created chaos in the world economy. Despite such global events, the Axis Small Cap Fund managed to give one of the best SIP returns so far. Just trust the data and the things they tell and start your investment journey.
Also Read: How to Start SIP? Learn from the experts in Just One Click.
Stocks Quality of Axis Small Cap Fund
The P/E ratio of the fund is around 9.8 and earnings growth is 18.25. As compared to the category for the same values, that are 7.06 and 19.65 respectively. It is evident that the Axis Small Cap Fund is of good quality.
Now, see what the numbers for sales growth and cash flow growth are telling. The SIP scheme has maintained 14.33 sales growth and 9.39 cash flow growth. Both of them are again greater than the category average.
What are these data suggesting? Can you tell?
Why is Axis Small Cap Fund a Good Performer?
Mutual fund schemes are best for investors who do not want to take risks with their hard-earned money. Axis Small Cap Fund's performance so far shows how much investors trust this small cap fund.
As an investor seeking for right scheme to invest, it is your right to know every possible thing about the fund. The following are the main factors responsible for making Axis Mutual Fund so promising:
Diverse Portfolio
As you have gone through the portfolio in previous sections, it is much clearer to you now. That the fund has been giving amazing returns, ever since its launch. Diversity in stocks is the key to success for any mutual fund. Axis Small Cap Fund has invested in the most promising small-cap companies. It has made it very easy for you to invest money and earn huge returns.
Smart Investments, Bigger Returns
Expert Fund Managers
Without an expert driver, no car can win the race. The same goes for the Axis Small Cap Fund scheme. Its team of expert fund managers includes Mr. Tejas Sheth, Mr. Mayank Hyanki, and Ms. Krishnaa N.
These experienced fund managers have been managing the fund for the last 20 years. All three of them come from different academic backgrounds. This brings diverse perspectives to the team thus improving overall its competence.
Investment Strategies
The investment strategy of the Small Cap Mutual Funds consists of certain factors like a bottom-up approach and a high level of focus on quality and growth.
The bottom-up approach means identification of potential small-cap stocks and buying them. Fund managers handling the scheme actively look for such promising stocks. You don't need to worry about it as they have got you. Trust their expertise and years of experience and start your investment journey with Axis Small Cap Fund now.
Risk Mitigation
The stocks are identified based on in-depth research with the most recent context of the market. This way, their growth can also be predicted and the precise time of withdrawal can also be speculated. As an investor, what else do you want?
There may be some doubt still in your head. It must be, after all, it is your hard-earned money. You don't need to trust the theories or strategies that the scheme guarantees to implement.
But, past performance in real market conditions can be a way to trust a mutual fund scheme. Because facts don't lie. So let's explore recent market data and find out why Axis Small Cap Fund is a promising scheme. If you want to invest in the fund then find the SIP returns with the help of the Best SIP calculator within minutes.
Yes, the stock quality of the Axis Small Cap Fund is great. Data does not lie, and they are suggesting that you can also earn profits from the scheme.
Enough talking about the data and performance analysis. One question still must be troubling you, is the Axis Mutual Fund for you or not? Let's find out.
Don’t Miss: 3 Best Small Cap Funds for 2025: Expert's Pick
Who Can Invest in Axis Small Cap Fund?
As an investor, you must ensure whether the fund suits your objectives and goals or not. It does not make any sense to invest in the wrong scheme and then wonder why there are no gains.
If you find the following traits within you then you are all set to invest in the mutual funds scheme:
- Patience for long-term investments, as long as 5 years, 7 years, or even more
- High-risk tolerance
- Strong urge to create wealth
You now know enough to decide to invest in the Axis Small Cap Fund. It's time to wrap up things and present you with some final thoughts on the fund.
But before that, let's discuss some key points that you should take from the discussion.
Also Read: Nippon India Small Cap Fund: Delivers 26.19% SIP Returns
Key Takeaways on Axis Small Cap Fund
Investors have been earning great money from the fund ever since its launch. You can also be one of them. Let's recall why the scheme is good for you:
- 21.83% Rolling Returns in 5 years
- 16.79% SIP in 3 years
- Diverse portfolio which means less risk
- Expert fund managers
Final Thoughts
To sum up, mutual fund investment was never easier before, you just need to assess certain data and you will know enough about the fund. Think about the Axis Mutual Fund, it has been performing well for the last few years. Better than various schemes. So, don't waste time rethinking your decision, as the above discussion has given enough data. Go, start investing and enjoy the fun of making extra money.
