Mutual fund investments: Buy-and-hold, sector shifts key to long-term gains, says Axis MF CIO

In a dynamic market like India, staying ahead means constantly rethinking strategy. Ashish Gupta, Chief Investment Officer at Axis Mutual Fund, believes that consistency in approach, careful research, and adapting to market shifts are central to building strong portfolios.

Speaking about his core investment philosophy, Gupta said, “We believe India is a growth economy. It houses several strong, sustainable businesses that have the potential to grow faster than the nominal gross domestic product (GDP).”

Axis MF relies heavily on research to find companies showing profitable growth, rising cash flows, and increasing value for shareholders.

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Axis MF follows a bottom-up, multicap stock-picking strategy.

“Our approach leans towards buy and hold, as we believe this generates sustainable alpha over time,” Gupta added.

The fund looks beyond largecaps, actively seeking opportunities in midcap and smallcap segments. “Market leaders in sectors like healthcare and hospitals often fall in the midcap or smallcap category,” he noted.

Each portfolio is managed by a dedicated fund manager, but the core investment philosophy remains uniform. “The strategy may vary by fund, but the fundamental beliefs are shared,” Gupta said.

When constructing portfolios, Axis MF considers stock selection, sector exposure, and position sizing. Gupta highlighted the role of liquidity, volatility, and valuations in decision-making. “Sector tilts also matter. We may reduce exposure to a sector based on macro conditions,” he said.

He pointed out that Axis MF increased allocation to largecaps when market valuations became stretched last year. “We moved towards better-valued largecap stocks,” he said, adding that rebalancing is key as markets evolve.

For the full interview, watch the accompanying video