Why is the Axis Bluechip Fund underperforming?

Axis Bluechip Fund is an equity-oriented mutual fund from Axis AMC.

The holding split of the Mutual Fund is as follows (Link)

Also, the top holdings of the stock(presently & historically) are as follows:

The Fund has underperformed in the past year as all the large-cap companies have been hit by the Covid-19 linked disruption, Ukraine-Russia War Effect on commodities, and the looming risk of recession in the developed world. Kindly note the returns mentioned here are for the regular growth version.

We can note that on a 10-year scale, the annualized returns of ~15% are pretty impressive

So, taking performance with the factors in the current environment, as an investor one can expect

• Turbulence in the short term(1–3yrs) and this will hold true for any mutual fund
• Invest with the horizon of 60–120months, especially while considering Large-cap oriented funds
• Fluctuations will be there in 2022 & 2023. Continue your SIPs into your Mutual Fund rather than stopping or redeeming the fund

Hope this helps

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