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Axis Midcap Fund

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Axis Midcap Fund
Morningstar India - 11 September 2020

The Axis Mid Cap fund stands out on many counts. The portfolio manager’s ability to execute the strategy in a consistent manner has yielded positive results. Shreyas Devalkar has been associated with the AMC since 2016 and has been managing the Axis Midcap Fund since November 2016. Devalkar’s experience of working as a credit analyst, sell-side broking analyst, and equity analyst covering multiple sectors is a positive.

Shreyas Devalkar’s portfolio is a high-conviction one where he invests in high quality stocks with long-term sustainable growth prospects. The manager evaluates firms based on their fundamentals, growth trajectory, corporate governance, financials, and so on. He places a lot of focus on corporate governance, which could lead him away from some firms despite their higher growth trajectory. The manager chooses stocks based on the PEG ratio as opposed to the company’s P/E ratio. The manager places a lot of focus on the promoters and undertakes a 360-degree approach while evaluating a company by ensuring thorough channel checks are put into place. Stock-picking is based on a fundamental bottom-up approach with added emphasis on top-down risk parameters, liquidity profile, and internal volatility targets. From a financial standpoint, they look for companies with lower capital gearing and strong balance sheets. The research team runs a model portfolio, which is a combination of their best ideas and is run based on a three to five-year view of stocks.

Despite the slowdown in the market, the fund has continued to witness flows and this could be owing to the fund’s positive showing under its current manager.

 

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