Factors to consider before investing in Axis Mutual Fund

Here are a few factors that you must consider to keep in mind before starting your investment journey with Axis Mutual Fund.

• Investment goals

  While investing in the Axis mutual fund scheme, you must remember that investment tenure and goals are interlinked. Your investment goal influences your decision of how long you wish to stay invested. Keeping your investment goal in mind, you can choose between SIP or lumpsum. In this regard, you must also consider your financial situation to choose your investment amount. 

  For instance, if you are looking forward to saving money for retirement benefits, you can go for large-cap funds. 

• Fund managers

  Fund managers are professionals whom AMCs appoint to manage your investments among different assets. They closely monitor and adjust your investments allowing you to build a portfolio that aligns with your investment goals as per your returns. You should research their qualifications and experience to decide the right investment for you. 

  Therefore, consider researching Shreyash Devalkar who manages 44 funds under Axis Mutual Funds. He also worked as a research analyst at IDFC Asset Management Company and IDFC Securities before joining this AMC.  

• Investment Tenure

  As an investor, it is also important for you to know how long you should stay invested to reach your goals. Depending on this, you can decide whether to choose SIP or lump sum as a mode of investment.

  If you are looking for small-term gains, you can opt for equity or small cap mutual fund schemes for high returns within a short span. 

• Expense ratio

  Axis Mutual Fund might charge an expense ratio as a small percentage of your assets with them. This is a small amount that AMCs charge for managing the assets on your behalf. Although the percentage might look small, it can impact your returns drastically. 

  Therefore, while comparing different mutual fund schemes, you must also check their expense ratio as well. This will allow you to choose one with a comparatively lower ratio. 

• Returns calculation

  It is also important for investors to calculate their total returns before finalising a mutual fund scheme. You can do this manually or use our INDMoney Axis Mutual Fund SIP calculators to roughly determine your returns over a given period. 

  This calculator helps you calculate your returns instantly and for infinite times. You can use it to compare different combinations and choose the right investment amount that allows you to achieve your investment goal. 

• Fund Type and Performance

  Along with the above, you must also have a clear knowledge of which mutual fund type will be the perfect fit for your investment goals. You can choose between debt, hybrid or equity mutual funds as per your risk appetite. 

  You should also analyse the mutual fund's annual performance before investing in one. Consider checking its 1,3, and 5 years performances to have a better idea of the mutual fund scheme. 

  For instance, the 3-5 years returns from Axis Mid Cap Fund under Axis Mutual Fund range from 14.19% to 11.74%. This can be a good option for investors looking for capital growth without facing major losses against market fluctuation.