The most prominent features of the BOI AXA Tax Advantage Fund-Regular Plan- Growth scheme are as follows-
- It takes a top-down approach for theme development. That means, it considers the domestic and global economy and the policy environment for the development of themes.
- The fund takes the bottom-up approach to select stocks. The stock selection is mostly guided by fund positioning and valuation matrices. And it happens after the identification of themes.
- The scheme doesn’t just act as a tax saving vehicle but also an amazing way to create wealth in the long run.
- The fund manager can flexibly make investments across different market caps and sectors.
- Returns from the equities in which the scheme invests can be maximized because the scheme has a lock-in period of three years.
This fund is ideal for you if you are-
- Looking for the growth of your invested money over a long-term horizon.
- Interested in making investment in equity and equity linked instruments, across market capitalizations.
- Interested in investing in the an ELSS fund that is open ended in nature.
What is the investment objective of this scheme?
The primary aim of this scheme is to ensure capital appreciation over a long-term horizon, by making investments in a diversified portfolio having mainly equity and equity linked securities of companies operating across market capitalizations. And that is why it may be called a diversified multi-cap fund.
Now, let’s have a look at the scheme performance table of BOI AXA Tax Advantage Fund-Regular Plan- Growth, ever since its launch. In the first year of the scheme’s inception, it offered a return of 54.44% against 38.37% of market average and 29.22% of CNX Nifty benchmark. In the third year of its launch, the scheme marked a return of 16.29% as opposed to 14.65% offered by other comparable funds in the market. The CNX Nifty benchmark for that year was 8.29%. In the fifth year also, the scheme offered an impressive return of 19.4%, while the return offered by other similar funds in the market that year was 18.71%. The benchmark that year stood at 12.04%. So, the overall return offered by the scheme ever since its inception is 21.66, which is way higher than the market average i.e. 17.39% and the benchmark i.e. 14.09%. So, if you are looking for a reliable ELSS fund with a consistent since-launch performance then BOI AXA Tax Advantage Fund-Regular Plan- Growth should be your choice.
Source: Swaraj Wealth Research
Even the rolling return offered by the scheme is good. During the time period Dec 19, 2016 to Dec 19, 2017, the scheme offered a rolling return of 52.72%. You can see here, that the performance of the scheme in the past one year has been really impressive.
Source: Swaraj Wealth Research
Although the performance of BOI AXA Tax Advantage Fund-Regular Plan- Growth has been pretty good for the past one year, it’s suitability to you depends on your financial goals and requirements. That is why it is of the utmost importance that you consult a financial advisor regarding whether or not you should park your money in this scheme. This is to make sure the scheme fulfils your desired goals.