Axis BSE Sensex Index Fund(IDCW)
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Business Overview
The Axis BSE Sensex Index Fund (IDCW) is a mutual fund that aims to replicate the performance of the BSE Sensex, one of India's most prominent stock market indices. This fund is ideal for investors looking for a simple, low-cost way to gain exposure to the Indian equity market. By investing in this fund, you can benefit from the growth of leading companies in India, making it a great option for both new and seasoned investors. It offers diversification, professional management, and the potential for long-term wealth creation.
- Tracks the performance of the BSE Sensex
- Ideal for long-term investors
- Provides diversification across top Indian companies
- Managed by experienced professionals
- Low expense ratio for cost-effective investing
Investment Thesis
Axis BSE Sensex Index Fund (IDCW) presents a compelling investment opportunity backed by a strong promoter group and credible management. With a robust growth trajectory in digital services and attractive valuations compared to peers, this fund is poised for significant long-term returns, making it a worthy addition to any retail investor's portfolio.
- Strong backing from Axis Bank, a reputable financial institution.
- Significant growth potential in digital services, aligning with market trends.
- Attractive valuation metrics compared to peer index funds.
- Diversified exposure to top-performing companies in the BSE Sensex.
- Ideal for investors seeking stability and growth in a volatile market.
Opportunity vs Risk
- Strong historical performance
- Diversified exposure to top companies
- Potential for long-term capital growth
- Low expense ratio
- Tax benefits under Section 80C
- Market volatility impacts returns
- Economic downturns affect performance
- Management fees may reduce profits
- Lack of liquidity in downturns
- Regulatory changes may impact funds
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10BusinessHighThe fund is invested in a diversified portfolio of large-cap companies, which are generally in future-ready sectors.
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10GrowthHighThe fund has shown consistent revenue growth due to its exposure to top-performing companies in the index.
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10ProfitabilityHighThe underlying companies exhibit strong ROE and OCF, indicating solid profitability.
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8ValuationHighValuation metrics such as P/E and P/B are in line with peers, suggesting fair pricing.
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7BalanceHighThe fund's underlying companies maintain a healthy debt/equity ratio and liquidity.
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6GovernanceGoodPromoter holding is stable, but some companies have minor pledging issues.
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5DriversGoodGrowth drivers include economic recovery and sectoral performance, but execution risks exist.
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5TechnicalsGoodMarket sentiment is neutral with moderate liquidity.