Axis Mutual Fund Bounces Back with Strong Performance After 2023 Restructuring

Axis Mutual Fund, India’s eighth-largest fund house, is witnessing a turnaround in its equity fund performance after struggling for nearly 2 years. Many of its equity and hybrid schemes have now moved to the top half of the one-year return charts, with some showing improvements in longer periods as well.

Key Changes Behind the Revival

The fund house restructured its investment approach in 2023 to improve underperforming schemes. Under the leadership of CEO B Gopkumar and CIO Ashish Gupta, Axis Mutual Fund made major changes, including strengthening the fund management team and refining its investment strategy.

Diversified Investment Approach

CIO Ashish Gupta stated that while the fund house continues to follow a ‘growth’ investment style, it has broadened its stock selection. The number of stocks in its portfolio increased from 328 in 2023 to 450 by the end of 2024. The focus remains on quality and high-return stocks across various sectors, including manufacturing and business-to-business industries.

Fund Management Team Expansion

To enhance research and decision-making, the fund house hired 4 new fund managers—Jayesh Sundar, Sachin Relekar, Tejas Sheth, and Vishal Agarwal. Additionally, 6 new research analysts joined since March 2023.

Performance in Different Timeframes

While most Axis Mutual Fund schemes are now in the top two quartiles for 1-year returns, long-term performance still lags. As of December 31, 2024, only the Value Fund, Balanced Advantage Fund, and Multicap Fund are ranked in the top two quartiles for three-year returns.

Future Outlook

With the improved investment strategy and a broader market focus, Axis Mutual Fund aims to sustain its strong performance across longer periods and regain its leadership in the mutual fund industry.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.