Axis MF says turnaround visible, but growth style dilution is a concern
Mint, B. Gopkumar, the CEO of Axis MF, discusses the fund house’s efforts to turn its story around. Edited excerpts: Over the last three or four quarters, we have restructured our portfolios.
Our three- and six-month performance is looking much better. Much better across categories and not just one category. If you look at our largest four funds, which includes large-cap fund, growth opportunities fund, equity-linked savings scheme (ELSS) and the focused fund, these are now typically in the first and second quartile over the three- and six-month periods.
These were in the fourth quartile for a long period of time. In most of the other fund categories, today we are in the third quartile. Our belief is that in the next two quarters, we should be doing much better, and we aim to be in the first quartile over time.
A year back, same time, our concentration was 65% to top-10 stocks. Today, we are at 43%. We added 20-25% more stocks in our portfolios.
Our top four funds is what people talk about, but if you look at our business cycle fund and manufacturing fund, they are doing extremely well. Last October, we called out manufacturing as an opportunity, and today you can see at least five-six new fund offers coming in that space. We are able to identify new themes while working on existing ones.
Our belief in the growth style of investing will play a significant role. Those who follow the growth style over a long period of time will see it come back, given the current focus on consumption, interest rates cooling off and favourable monsoon predictions. The last three-four months’ performance was affected by the PSU (public sector unit) run-up, which doesn’t fit our growth framework.
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