Introduction
The financial market is full of uncertainties and building high returns is challenging but it is possible with Axis Small Cap Fund is known as a wealth builder in the market.
It is a small category fund by Axis Mutual Fund which is a popular asset management company. The fund focuses on investing in small companies which helps the fund to achieve higher returns. Even small cap category is considered a bit risky compared to large and mid cap funds but the Axis small cap scheme changed this view. It delivered consistent great returns in mutual funds in the past few years. It will be interesting to know how it can be beneficial for you as well.
In this article, you will learn about the Axis small cap scheme. You will cover its investing strategy, fund manager and how it can be a profitable investment for you. So let's get started.
What is Axis Small Cap Fund?
Axis small cap scheme is an equity scheme introduced by Axis Mutual Fund in the year 2013. It focuses on investing in small-sized companies whose market value is less than 5000 crores. The current Axis small cap fund regular growth NAV (Net Asset Value) is 105.10 as of February 2025.
The fund aims to provide higher returns to investors by investing in emerging small cap companies. The thing that makes it different is its strong investment strategy and performance. The fund showed a CAGR of 16.34% in the past 3 years which shows the fund strong potential to generate higher returns.
In the financial market, the fund comes with strong fundamentals and aims to maximise investors money. This is the reason why investors trust to invest in the fund.
Investment Strategy of Axis Small Cap Fund
The Axis small cap fund follows a proven investment strategy to achieve high returns. It focuses on small companies for investment. To achieve balanced growth, the fund uses a smart allocation strategy where it also invests in mid and large companies stocks. If you look at its asset allocation, the fund diversifies its assets 50-60% to small cap companies and 20-30% to large and mid-size companies.
Active management is another effective method of axis small cap funds use to adapt growth opportunities. An expert team of fund managers actively adjust the portfolio to make higher returns. In simple words, whenever any sector seems to perform well, the fund manager increases its allocation towards that sector. These fund managers also play an important role in quality stock selection. They use deep research to identify the stocks that have high growth potential.
This amazing investment strategy helped the fund to perform better over time. Even the market is unstable, the fund investing style always makes growth for investors.
Who Manages Axis Small Cap Fund?
The person who manages the Axis small cap fund is Mayank Hyanki. He has 17 years of incredible experience and managing the fund since 2023. He manages an AUM (Asset Under Management) of Rs. 23,139 crores.
If you look at his educational background, he holds a degree in Bachelor of Technology and a Post-Graduate Diploma in Management. The reason behind Axis small cap fund regular growth is Mayank's proven investing strategy and fund management. He focuses on investing in quality companies that have higher growth potential. He uses deep research and strong market evaluation to identify profitable stocks. Also, he focuses on long-term investment that helps to achieve higher growth and manage risk.
His expertise in fund management earned him an unforgettable reputation. His expert stock selection and strong research are not only beneficial for investors but also helpful for the Axis small cap fund regular growth NAV to grow over time.
Why it is Good to Invest in Axis Small Cap Fund?
Over the past few years, the fund proved its strength by making consistently higher returns. Here are a few factors that show why it is good for you to invest in the fund:
1. Affordable Investment
If you prefer investing a fixed amount rather than investing a large sum at once, then investing in the fund is a great choice. It helps you to invest through a SIP so you can invest without taking the burden of investing large sum.
2. Expert Fund Management
The fund follows active fund management to adjust the portfolio according to market conditions. One of the biggest benefits of this approach is the Axis small cap funds can early adapt the growth opportunities which helps to make higher returns.
3. Strong Past Performance
If you look at the past performance of the fund, it delivered consistent results to investors. It also helped to boost investment and generated better returns for investors in the long term. By investing in the fund, you can unlock the potential of long-term wealth.
Who Should Invest in Axis Small Cap Fund?
The Axis small cap scheme is a great choice for investors who are looking to build long-term wealth in mutual funds. However, due to higher volatility, it is more suitable for these investors:
1. Long-Term Investors
Small cap companies have the potential to make higher returns but it is important to consider that it takes time. If you are planning to invest for at least 5-10 years or start an SIP, investing can be more profitable for you.
2. High-Risk Takers
As you know, the fund has to face higher volatility because of its focus on small cap companies. Sometimes this factor can cause low performance in the short term. So investing can be beneficial for you if you have a higher risk tolerance.
3. High Return Seekers
The Axis small cap fund regular growth fund focuses on investing in small companies that are expanding their size to become large companies. If you want to boost your investment, then investing might be a good choice. Because when these companies stock prices increase, you will make higher returns.
Conclusion
In short, the Axis small cap fund is a value investing choice for investors in the small cap space. It has the potential to outperform its benchmark and make great returns. If you are looking for an opportunity to grow your money in the next 5-10 years, then investing in the fund might be a great choice for you.
If investing a large sum seems hard to you, then you start the investment journey in a SIP. It is a low-risk investment plan that you can start by investing a fixed amount at set times. So if you want to make the best leverage investment benefits by investing a small part of your income, then this plan is definitely a great choice for you.
