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Fincash » Axis Long Term Equity Vs L&T Tax Adv Fund

Axis Long Term Equity Fund Vs L&T Tax Advantage Fund

Updated on January 21, 2020 , 425 views

Axis Long Term Equity Fund and L&T Tax Advantage Fund both belong to the ELSS category of Mutual Funds. ELSS or Equity Linked Savings Schemes are the Mutual Fund schemes that give investors the benefits of both Investing as well as tax deduction. These schemes predominantly invest their corpus in equity and equity-related instruments while the remaining portion in fixed income instruments. Individuals investing in ELSS can claim a tax deduction of up to INR 1,50,000 under sec 80C of Income Tax Act, 1961. However, being a Tax Saving Investment, ELSS has a lock-in period of three years which is shortest as compared to other tax saving avenues. Though both Axis Long Term Equity Fund and L&T Tax Advantage Fund both belong to the ELSS category, yet there exist differences between them. So, let us understand the differences through this article.

Axis Long Term Equity Fund

Axis Long Term Equity Fund is a part of Axis Mutual Fund. This open-ended ELSS scheme was launched on December 29, 2009. The objective of Axis Long Term Equity Fund is to achieve capital appreciation in the long-term along with regular income that is generated from a diversified portfolio predominantly consisting of equity and equity-related instruments. The scheme uses S&P BSE 200 Index as its benchmark to construct its portfolio. As on March 31, 2018, some of the top holdings of Axis Long Term Equity Fund consisted of HDFC Limited, Bajaj Finance Limited, Maruti Suzuki India Limited, and TTK Prestige Limited. Axis Long Term Equity Fund is solely managed by Mr. Jinesh Gopani. This scheme is suitable for individuals looking for an investment horizon of 3-5 years.

L&T Tax Advantage Fund

L&T Tax Advantage Fund is an open-ended ELSS scheme that was launched in the year 2006. The scheme uses S&P BSE 200 TRI Index as its benchmark to construct its portfolio and is managed by L&T Mutual Fund. The objective of this scheme is to attain capital appreciation over long-term from a portfolio whose significant portion has exposure in equity instruments. The fund manager managing L&T Tax Advantage Fund is Mr. S. N. Lahiri. As per the scheme’s objective, it invests around 80-100% of its corpus in equity and equity-related instruments while the remaining in fixed income instruments. Some of the key benefits of the scheme are a two-in-one benefit of investing and tax deduction, greater diversification for risk control, and 360-degree research.

Axis Long Term Equity Fund Vs L&T Tax Advantage Fund

Though both Axis Long Term Equity Fund Vs L&T Tax Advantage Fund belong to the same category, yet; they differ on numerous accounts such as performance, current NAV, AUM, and so on. So, let us understand the differences between the schemes based on these parameters that are divided into four sections which are given below as follows.

Basics Section

It is the first section in the comparison of both the schemes. The comparable elements of the basics section include current NAV, fincash rating, and scheme category. To begin with the scheme category, it can be said that both Axis Long Term Equity Fund and L&T Tax Advantage Fund belong to the same category, that is, Equity ELSS. The comparison of Fincash Rating reveals that Axis Long Term Equity Fund is a 3-Star rated scheme while L&T Tax Advantage Fund is a 4-Star rated scheme. Even, the comparison of current NAV reveals that there is a difference between the NAV of both the schemes. As on April 23, 2018, the NAV of Axis Long Term Equity Fund was approximately INR 43 while of L&T Tax Advantage Fund was approximately INR 56. The summary comparison of basics section is tabulated as follows.

Parameters
BasicsNAV
Net Assets (Cr)
Launch Date
Rating
Category
Sub Cat.
Category Rank
Risk
Expense Ratio
Sharpe Ratio
Information Ratio
Alpha Ratio
Benchmark
Exit Load
Axis Long Term Equity Fund
Growth
Fund Details
₹49.6502 ↑ 0.27   (0.54 %)
₹21,473 on 31 Dec 19
29 Dec 09
Equity
ELSS
20
Moderately High
2.13
0.89
0.52
4.74
Not Available
NIL
L&T Tax Advantage Fund
Growth
Fund Details
₹57.09 ↑ 0.46   (0.82 %)
₹3,382 on 31 Dec 19
27 Feb 06
Equity
ELSS
7
Moderately High
2.21
0.15
-0.82
-6.06
Not Available
NIL

Performance Section

The comparison of Compounded Annual Growth Rate or CAGR returns at different time intervals is done in the performance section. These time intervals include 1 Month Return, 6 Month Return, 3 Year Return, and Return Since Inception. The comparison of performance section reveals that in almost all the time intervals, the performance of Axis Long Term Equity Fund is better as compared to the performance of L&T Tax Advantage Fund. The table given below shows the summary comparison of the performance section.

Parameters
Performance1 Month
3 Month
6 Month
1 Year
3 Year
5 Year
Since launch
Axis Long Term Equity Fund
Growth
Fund Details
0.3%
3.3%
13.1%
20.2%
17%
10.3%
17.3%
L&T Tax Advantage Fund
Growth
Fund Details
3%
8.2%
10.4%
11%
10.6%
8.3%
13.3%

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Yearly Performance Section

Being the third section in the comparison, it analyses the differences in the absolute returns generated by both the schemes for a particular year. The comparison of absolute returns section also reveals that the performance of Axis Long Term Equity Fund in many instances is better as compared to L&T Tax Advantage Fund. The comparison summary of the yearly performance section is as shown in the table given below.

Parameters
Yearly Performance2019
2018
2017
2016
2015
Axis Long Term Equity Fund
Growth
Fund Details
14.8%
2.7%
37.4%
-0.7%
6.7%
L&T Tax Advantage Fund
Growth
Fund Details
4.6%
-8.1%
42.3%
8.1%
2.9%

Other Details Section

This being the last section, it compares the elements such as AUM, minimum SIP and lumpsum investment, and exit load. The comparison of minimum SIP investment reveals that the SIP amount for both the schemes is same, that is, INR 500. In addition, the minimum lumpsum amount is also same for both the schemes, that is, INR 500. However, the comparison of AUM reveals that there is a significant difference between both the schemes. As on March 31, 2018, the AUM of Axis Long Term Equity Fund is approximately INR 15,898 Crores while of L&T Tax Advantage Fund is INR 3,016 Crores. The comparison of exit load reveals that there is no exit load for both the schemes as they are ELSS ones that have a lock-in period of three years. The comparison of other details section is summarized in the table given below.

Parameters
Other DetailsMin SIP Investment
Min Investment
Fund Manager
Axis Long Term Equity Fund
Growth
Fund Details
₹500
₹500
Jinesh Gopani - 8.67 Yr.
L&T Tax Advantage Fund
Growth
Fund Details
₹500
₹500
S.N. Lahiri - 7.02 Yr.

Growth of 10k Investments over the years

Growth of 10,000 investment over the years.
Axis Long Term Equity Fund
Growth
Fund Details
DateValue
31 Dec 14₹10,000
31 Dec 15₹10,670
31 Dec 16₹10,596
31 Dec 17₹14,563
31 Dec 18₹14,952
31 Dec 19₹17,169
Growth of 10,000 investment over the years.
L&T Tax Advantage Fund
Growth
Fund Details
DateValue
31 Dec 14₹10,000
31 Dec 15₹10,290
31 Dec 16₹11,127
31 Dec 17₹15,830
31 Dec 18₹14,551
31 Dec 19₹15,227

Detailed portfolio Comparison

Asset Allocation
Axis Long Term Equity Fund
Growth
Fund Details
Asset ClassValue
Cash2.64%
Equity97.36%
Equity Sector Allocation
SectorValue
Financial Services43.25%
Consumer Cyclical14.14%
Consumer Defensive11.12%
Technology7.45%
Communication Services6.13%
Basic Materials5.99%
Industrials4.09%
Utility3.49%
Health Care1.7%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Bajaj Finance Ltd (Financial Services)
Equity, Since 30 Sep 16 | 500034
9%₹1,836 Cr4,506,153
↑ 179,487
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 May 11 | KOTAKBANK
8%₹1,704 Cr10,547,075
↓ -375,000
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jan 10 | HDFCBANK
8%₹1,675 Cr13,140,750
↓ -475,000
Avenue Supermarts Ltd (Consumer Defensive)
Equity, Since 30 Apr 17 | 540376
6%₹1,362 Cr7,475,645
Bandhan Bank Ltd (Financial Services)
Equity, Since 31 Mar 18 | 541153
6%₹1,351 Cr23,238,395
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Apr 17 | TCS
6%₹1,344 Cr6,548,129
Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Jan 10 | HDFC
6%₹1,343 Cr5,846,662
↑ 310,000
Info Edge (India) Ltd (Communication Services)
Equity, Since 31 May 14 | NAUKRI
5%₹1,149 Cr4,363,102
↓ -210,947
Pidilite Industries Ltd (Basic Materials)
Equity, Since 30 Nov 14 | PIDILITIND
5%₹1,085 Cr8,329,997
↓ -72,221
Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 30 Nov 10 | MARUTI
5%₹1,069 Cr1,475,870
↑ 233,000
Asset Allocation
L&T Tax Advantage Fund
Growth
Fund Details
Asset ClassValue
Cash2.72%
Equity97.88%
Equity Sector Allocation
SectorValue
Financial Services36.52%
Technology11.33%
Basic Materials11.1%
Health Care9.37%
Consumer Cyclical8.75%
Industrials8.06%
Energy4.6%
Consumer Defensive3.93%
Communication Services3.61%
Utility0.61%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Jun 09 | ICICIBANK
8%₹256 Cr4,984,600
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 06 | HDFCBANK
7%₹223 Cr1,751,800
Tata Consultancy Services Ltd (Technology)
Equity, Since 30 Jun 09 | TCS
5%₹153 Cr747,000
Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 18 | RELIANCE
4%₹132 Cr853,000
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 30 Apr 15 | KOTAKBANK
4%₹124 Cr765,100
Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Mar 06 | LT
3%₹113 Cr853,000
HCL Technologies Ltd (Technology)
Equity, Since 30 Sep 17 | HCLTECH
3%₹99 Cr879,200
↓ -20,500
Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 17 | BHARTIARTL
3%₹98 Cr2,214,200
↓ -487,611
Infosys Ltd (Technology)
Equity, Since 31 Mar 06 | INFY
3%₹95 Cr1,370,200
(A) Tri Party Repo Dealing System (Treps)
CBLO/Reverse Repo | -
3%₹93 Cr

Therefore, it can be concluded that both the schemes differ on account of various parameters. As a result, individuals should be careful while investing in any of the schemes. They should check whether the scheme suits their investment objective and understand its modalities completely. This will help them to attain their objectives on time and ensure that their investment is safe.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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