Should I hold or sell Axis schemes? Should I switch to a different fund in the same category?
–Md Nizam
You are right that both Axis Bluechip Fund and Axis Long Term Equity Fund have performed badly in 2021 and 2022. It is true that some Axis schemes have struggled to beat the benchmarks and peers in the last two years as the value style of investing became popular. However, you have to remember that Axis schemes offered handsome returns when the growth style ruled the market. Every investing style gains prominence or falls out of favour in different phases in the market. It is quite possible that Axis Mutual Fund schemes may be back in reckoning in future. However, if you think you have given these schemes enough time, you can consider investing in other schemes based on your investment objectives and risk profile. Both Axis Bluechip Fund and Axis Long Term Equity are part of recommendations. If you want, you can invest in other schemes of your choice.
Note, ELSS funds come with a lock-in period. You can sell your investments only after the mandatory lock-in period of three years.
If you are investing in actively managed funds, you should remember that these schemes have been struggling to beat their total return index benchmarks for the last few years. The trend is likely to continue. If you are concerned about it, you should consider investing in large cap index schemes. Remember, you should do it only if you subscribe to passive investing and are happy with index returns. If you still believe actively-managed schemes can offer extra returns than their benchmarks, you may continue to invest in these schemes.
