The Analyst Rating does not express a view on a given asset class or peer group; rather, it seeks to evaluate each strategy and associated vehicle within the context of an appropriate benchmark and peer group.
Morningstar analysts assign ratings for funds using various parameters. The supreme rating is a Gold, followed by Silver, Bronze, Neutral and Negative. To understand what this means, do read What the rating indicates.
Funds managed by SHREYAS DEVALKAR.
He chooses stocks based on the PEG ratio as opposed to the P/E ratio of a company. The focus is on being able to identify companies with sustainable earnings growth potential and a credible management.
Rather than investing in sector leaders, he evaluates companies based on their fundamentals, growth trajectory, corporate governance, financials, and so on. They place a lot of focus on corporate governance, and this leads them away from some companies despite their (possibly) higher growth trajectory.
Stock-picking is based on a fundamental bottom-up approach with added emphasis on top-down risk parameters, liquidity profile and internal volatility targets. From a financial standpoint, they look for companies with lower capital gearing and strong balance sheets. The research team runs a model portfolio which is essentially a combination of their best ideas and is run based on a three- to five-year view of stocks. Overall, we think that the investment process is a well-thought one.
- FUND: Axis Midcap Fund
- CATEGORY: Equity Mid Cap
- STAR RATING: 4 stars
- ANALYST RATING: Neutral
- DATE OF ANALYSIS: January 2023
- Read the Analyst Note
This portfolio is a high-conviction one where he invests in high-quality stocks with long-term sustainable growth prospects. The portfolio remains markedly different from its peers as well as its benchmark, owing to the quality of stocks that fit into their portfolio. The manager places a lot of focus on the promoters and undertakes a 360-degree approach while evaluating a company by ensuring thorough channel checks are put into place. They also spend time speaking to dealers, distributors, and clients.
- FUND: Axis Bluechip Fund
- CATEGORY: Equity Large Cap
- STAR RATING: 4 stars
- ANALYST RATING: Neutral
- DATE OF ANALYSIS: January 2023
- Read the Analyst Note
This portfolio is a high-conviction one where he invests in stocks from bluechip companies across sectors that he has a positive view on. He looks at sectors from a top-down perspective and evaluates individual stocks from a bottom-up perspective. The portfolio remains markedly different from its peers as well as its benchmark, owing to the quality of stocks that fit into their portfolio.
Funds managed by JINESH GOPANI.
He looks for companies that have the capability to grow over a three- to five-year period and seeks to find quality names at reasonable valuations. However, he can tend to invest in stocks that are slightly expensive in relative terms (reflected in the fund's higher price/earnings ratio) as long as they meet his quality-growth criterion.
The focus is on being able to identify companies with sustainable earnings growth potential, credible management, and good corporate governance practices. Stock-picking is based on fundamental bottom-up research with an emphasis on top-down risk parameters, liquidity, and internal volatility targets. From a financial standpoint, the team looks for companies with low capital gearing and strong balance sheets. It undertakes a 360-degree approach while evaluating a company by ensuring thorough channel checks are in place and spends time speaking to dealers, distributors, clients, and so on.
The fund house has a research universe of about 350 stocks bucketed into three segments based on the frequency and depth of coverage. It seeks to spend more time identifying fresh ideas and researching companies that are not as widely researched by the broader market. The research team also runs a live model portfolio, essentially a combination of its best ideas.
- FUND: Axis Long Term Equity Fund
- CATEGORY: Equity ELSS
- STAR RATING: 4 stars
- ANALYST RATING: Silver
- DATE OF ANALYSIS: November 2022
- Read the Analyst Note
The portfolio holds about 50%-70% large-cap stocks, while small and mid-caps constitute the remaining portion.
- FUND: Axis Focused 25 Fund
- CATEGORY: Equity Focused
- STAR RATING: 2 stars
- ANALYST RATING: Neutral
- DATE OF ANALYSIS: November 2022
- Read the Analyst Note
The fund shares a fair bit of overlap with the Axis Long Term Equity Fund and is run as a top-heavy, high-conviction strategy.
Ask Morningstar is when readers write in for our analysts' inputs:
