Axis AMC Brand Equity
Our view on the fund, the AMC, the strategy, the performance & the investment team.
IME's Review of Axis AMC Brand Equity
| Fund Rating | Strategy Rating | Performance Rating |
|---|---|---|
Upgrade | Upgrade | Upgrade |
View on the Fund
We do not recommend this strategy, primarily due to AMC being managed by a mutual fund-driven PMS platform. This setup often leads to reduced focus on the PMS business, and a higher risk of fund manager churn. The fund has also delivered poor performance, having underperformed in 5 consecutive calendar years since 2020.
Strategy
Fund's Strategy View
The strategy is implemented in a very loose sense (with a reasonable share of B2B businesses and also BFSI, where brand value is not the same as pure consumer companies.)
Fund Performance
The fund has underperformed peers & is amongst the worst performing schemes in this category in the last 5 year trailing returns. In terms of longer-term annual performance, performance consistency is weak, with the fund having underperformed it's benchmark in more years than having outperformed.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Axis AMC Brand Equity | 2.5 | 7.7 | 9.4 | 10.5 |
| S&P BSE 500 | -2.7 | 10.3 | 10.6 | 13 |
| Alpha over Broad Mkt BM | 5.2 | -2.6 | -1.2 | -2.5 |
Performance as of: 31-Jul-26 | Inception Date: 05-Dec-16 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Hitesh Zaveri | 4-star rated FM
Head - Listed Equity Alternatives | 26 yrs Experience | 5 yrs at current firm
Past Experience: Plutus Capital, OSF Capital, Birla AMC, Enam AMC
Hitesh Zaveri joined Axis AMC in 2022 as SVP & Head – Listed Equity Alternatives. He is responsible for managing the Axis PMS portfolios along with relevant CAT-3 AIF strategies. Hitesh has over 25 years of experience in portfolio management, investment banking and equity research. Prior to joining Axis AMC, he served as Head of Investments in the PMS business at Aditya Birla Mutual Fund. He has pursued his MBA from Mumbai University, and has also completed a few programs from the Harvard Business School and from The Wharton School.
IME's Review of Axis AMC PMS
| AMC Rating | Pedigree Rating | Team Rating | Philosophy Rating |
|---|---|---|---|
Upgrade | Upgrade | Upgrade | Upgrade |
View on AMC
The integration of Axis Securities has strengthened the PMS platform through a larger investment team, broader research coverage and greater institutional resources. We view this as a positive step in building a more scalable investment platform. However, compared with investor-promoter-led PMS firms, AMC-led structures may still face relatively higher fund manager turnover and less continuity in investment philosophy over long periods, as key investment professionals typically have lower economic ownership in the business. As a result, we generally view promoter-led PMS platforms as having stronger alignment and greater stability in investment teams.
AMC's Pedigree
Axis AMC is one of India's leading asset managers with a strong presence across mutual funds, PMS and alternative investments. The integration of Axis Securities' investment business has meaningfully expanded the firm's investment team, research capabilities and overall scale, creating a broader investment platform to support its PMS and AIF strategies.
AMC Team
Following the integration of Axis Securities' investment business, Naveen Kulkarni now serves as the overarching CIO across the PMS and AIF platforms, while Hitesh Zaveri continues to lead the AIF business. However, the firm has previously witnessed a significant leadership transition with the departure of long-tenured CIO Trideep Bhattacharya (2016 to 2021). We view such fund manager churn as a recurring risk at AMC-led PMS platforms, particularly where key investment professionals have limited economic ownership in the business
Investment Philosophy
Investment philosophy is not clearly defined at the PMS level; strategy is driven at the portfolio level instead.
Axis Brand Equity – Investment Strategy
Axis Brand Equity is the flagship strategy of Axis PMS and focuses on investing in companies with strong brand equity that provides a durable and sustainable competitive moat.
Investment Philosophy
The strategy is built on the belief that strong brands create bargaining power. Axis invests in businesses with well-established brands supported by intellectual property, marketing strength, and continuous innovation. These attributes help companies build pricing power, customer stickiness, and long-term resilience.
Strong brands are also associated with increasing economies of scale, high barriers to entry, and exposure to under-penetrated markets. Together, these factors are expected to drive superior growth and more consistent returns across business cycles.
Investment Process
- Brand-Led Universe Creation: Screen the broader equity universe to identify companies with strong and recognizable brands.
- Quantitative Brand Filters: Focus on companies with meaningful investments in brand building (advertising, marketing, communication, royalty, and R&D), growth rates exceeding GDP growth, and returns above the cost of capital, while excluding highly cyclical sectors.
- Fundamental Research: Conduct detailed analysis through management interactions, competitive positioning assessment, industry visits, and margin-of-safety evaluation.
- Portfolio Construction & Review: Build and periodically review the portfolio based on research insights, valuation comfort, and conviction levels.
PMS Background
Axis AMC PMS is part of Axis Asset Management, one of India's larger asset management companies. The PMS platform benefits from the AMC's research infrastructure, broker and corporate access, and extensive distribution capabilities. More recently, the integration of Axis Securities' investment business has further strengthened the platform by adding investment talent, research depth and portfolio management capabilities. While these developments enhance the scale and institutional resources available to the PMS, its pedigree is primarily derived from the broader Axis investment ecosystem rather than from an investor-promoter-led heritage, which remains a distinguishing feature of many founder-driven PMS platforms
PMS Investment Philosophy
Axis PMS strategies are centred around investing in strong consumer and business brands. Flagship strategies such as the Axis Brand Equity Portfolio and Axis Core and Satellite Portfolio are built on the belief that brands create durable competitive advantages through pricing power, customer stickiness, and bargaining leverage. The investment approach focuses on companies with strong intellectual property, marketing capabilities, and innovation, which together help reinforce brand strength and long-term resilience.
Strong brands are viewed as lower-risk franchises due to their ability to benefit from economies of scale, high barriers to entry, and presence in under-penetrated markets. These characteristics are expected to drive superior growth and more consistent returns across business cycles. As a result, the strategy adopts a thematic tilt towards brand-led businesses where competitive moats are structurally embedded.
Suitable For
Investors seeking the comfort of investing with a large, established asset management brand, while aiming for higher risk–return potential than traditional mutual fund strategies.
Experience the benefits of working with a 'research-first' investments firm
Free 15-Day Trial of IME RMS App
Enjoy a complimentary 15-day trial of IME RMS and 3 1-hour consultations with a Senior Private Banker.
Access IME’s central research insights across MFs, PMSs, AIFs, SIFs and global funds, along with personalised support on risk profiling, mandate design, financial planning, and a portfolio review.
Experience the difference a research-first, transparent approach can make to your wealth journey.
