Large-cap equity funds are often considered relatively safer investment options within the equity fund category. They invest in well-established, high market-cap companies, which tend to be less volatile than mid-caps or small-caps.
Axis Bluechip Fund has been a popular large-cap pick. While it has shown strong historical performance, recent years have presented a mixed picture, leading investors to question its continued viability. In this blog, we will discuss the Axis Bluechip Fund and whether it is still a good investment in the large-cap category.
Overview of Axis Bluechip Fund
Axis Bluechip Fund is a large-cap equity mutual fund managed by Axis Mutual Fund that invests in India’s top 100 companies by market capitalization.
The fund follows a bottom-up approach, combining quality market leaders and promising challengers from sectors such as banking, finance, IT, and FMCG.
As of 26 September 2025, it boasts an AUM of ₹32,953 crore, with an expense ratio of 1.57% and a NAV of around ₹59.88.
Benefits of investing in Axis Bluechip Fund
Some benefits of investing in the Axis Bluechip Fund are mentioned below:
Stability
Axis Bluechip Fund invests predominantly in established, financially strong large-cap companies, which helps reduce volatility compared to mid or small-cap funds.
Consistent Long-Term Growth
The fund aims to deliver stable and reliable returns by focusing on market leaders with proven track records, making it suitable for wealth creation over a five-year or longer horizon.
Diversification
Investors benefit from a diversified mix of banking, finance, IT, FMCG, and other top sectors, which spreads risk and enhances portfolio resilience.
Professional Fund Management
Experienced fund managers actively select and monitor investments, using robust research and risk management processes to optimize returns and protect investor capital.
High Liquidity and Transparency
The fund allows easy entry and exit, with regular updates on its performance and holdings, ensuring investors stay informed and have access to funds when needed.
What’s Holding It Back?
Some factors which investors should consider before investing in Axis Bluechip funds are:
Lag vs Peers & Benchmarks
Axis Bluechip Fund has underperformed its benchmark, BSE 100 TRI, and some peer large-cap funds over the past 3-5 years, making it less attractive for investors seeking attractive returns in the short term.
Concentrated Portfolio Risk
Heavy allocation to private banks and financial stocks increases vulnerability to regulatory changes and sector-specific headwinds, which have weighed on returns in recent periods.
High Expense Ratio
Its expense ratio is 1.57%, which is on the higher side for a large-cap fund and affects net returns over long horizons.
Weak Short-Term Returns
Over 1-year periods, the fund has delivered flat or negative annualized returns of 6.5%, making it less attractive for short- to medium-term investors.
Better Alternatives
With lower-cost index funds and actively managed peers outperforming, Axis Bluechip faces tougher competition in the large-cap space.
Who Should Invest in Axis Bluechip Fund?
Axis Bluechip Fund still holds merit for investors seeking exposure to large, stable companies with relatively lower volatility. Its disciplined investment process and focus on quality businesses make it a safer bet compared to mid-cap and small-cap funds.
However, if an investor’s priority is consistent returns at low cost, index funds tracking the Nifty 50 or Nifty 100 may provide better options. The Axis mutual funds are suitable for risk-averse, long-term investors, but not the first choice for those seeking near-term, attractive returns.
Conclusion
Axis Bluechip Fund is an attractive option for investors looking for steady and consistent long-term growth through exposure to India’s leading large-cap companies. It is ideal for investors with a five-year or longer time horizon and those who are willing to take on moderate risk due to its disciplined approach, emphasis on quality businesses, and comparatively lower volatility.
However, it is not a good option for investors looking for more affordable options or better short-term returns. An investor’s financial objectives, risk tolerance, and investment horizon ultimately determine whether or not they choose to invest in Axis Bluechip Fund.
