Axis AMC Brand Equity
Axis AMC PMS | Equity | | PMSIME's View on Axis AMC Brand Equity
Strategy
Investment 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.
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.
IME's View on Axis AMC PMS
View on AMC
Axis AMC PMS faces common issues found in large MF-driven PMS firms, such as PMS being treated as an add-on instead of a separate business unit, high turnover in the investment team, lack of commitment from the CIO, and vague investment philosophies. While the AMC's distribution abilities can aid in scaling the PMS and provide research access, it is often not as strong as founder-driven PMS firms with a dedicated CIO.
AMC's Pedigree
Axis AMC is a top 10 asset manager in India known for managing mutual fund assets. While being part of a larger asset management house has benefits like a central research team and distribution strengths, the pedigree of an AMC-driven PMS may not compare to investor-cum-promoter driven PMS's with stable investment teams and defined investment processes.
AMC Team
AMC's top leadership has changed from Trideep Bhattacharya to Hitesh Zaveri, both experienced investment professionals in the alternate space. This turnover in leadership is a common issue with AMC-driven PMSs lacking substantial equity ownership by the core FM.
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’s Brand Equity strategy is their flagship offering, which seeks to invest in companies with a strong ‘brand equity’ that provides a sustainable competitive moat for the business.Investment Philosophy
They believe brands create bargaining power. They invest in companies with a strong brand which creates a competitive moat. Axis focuses on products/services with strong IP, marketing, and innovation. This helps make a strong brand which in turn creates a bargaining power. Key aspects such as strong bargaining & pricing power, increasing economies to scale, high barriers to entry, and the presence in under-penetrated markets lead to superior returns, superior growth which in turn lead to higher investor returns over business cycle.Investment Process
- Screening an Investment universe looking for strong brands
- Seeking for significant brand investment (incl. advertising, marketing, communication, royalty, R&D expenses), companies with growth> GDP growth and returns> cost of capital. As well as eliminating the highly cyclical sectors/companies
- Research is conducted on companies based on management interaction, competition analysis, industry visits, margin of safety analysis.
- Based on the research a portfolio is conducted and reviewed.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Axis AMC Brand Equity | -11.8 | 11.7 | 16 | 10.8 |
| S&P BSE 500 | -6.6 | 14.7 | 19.2 | 14.3 |
| Alpha over Broad Mkt BM | -5.2 | -3 | -3.2 | -3.5 |
Performance as of: 30-Sep-25 | Inception Date: 05-Dec-16 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Hitesh Zaveri | 3-star rated FM
Head - Listed Equity Alternatives | 25 yrs Experience | 4 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.
