Fund Manager Talk | Axis BAF cuts equity allocation from 70% in January to 53% now
In anticipation of a correction, Axis Balanced Advantage Fund has brought down the net equity exposure from over 70% in January 2024 to around 53% in October.
«Our proprietary model recommended reducing equity allocation over the past 4-5 months, particularly following the market run-up around the Lok Sabha election. This decision was driven by key variables such as high valuations and a moderation in high-frequency indicators,» says Jayesh Sundar,Equity: Fund Manager,Axis Mutual Fund.
Edited excerpts:
Take us through the performance of your Axis Balanced Advantage Fund and how it has managed to deliver returns with lower volatility.
Axis Balanced Advantage Fund has delivered returns of 30.9% and 13.4% CAGR on 1 year and 3-year (as on 31st Oct 2024, Direct Plan) basis respectively. The fund has beaten its benchmark during this period and generated better than median returns in the category.
Our asset allocation framework is quite comprehensive, factoring in various macro variables such as valuations, earnings growth, interest rate trends, inflation, flows etc. Besides, we also actively look at micro variables, high frequency indicators and sectoral earnings trends. It also considers some of the qualitative aspects such as geo-political risks and planned events such as elections, which could result in market volatility.
Stock Trading
Derivative Analytics Made Easy
By — Vivek Bajaj, Co Founder- Stockedge and Elearnmarkets
Stock Trading
Point & Figure Chart Mastery: A Comprehensive Trading Guide
By — Mukta Dhamankar,
