Axis AMC Core & Satellite
Axis AMC PMS | Equity | | PMSIME's View on Axis AMC Core & Satellite
Strategy
Investment Fund
Can wait it out as it is not recommended at this stage as the portfolio is young, the value of the strategy loose and don't know of the implementation of the strategy. We also prefer owner-managed AMCs since the risk of churn at the senior team level is low. Axis recently saw Trideep Bhattacharya leave the AMC, replaced by Hitesh Zaveri.
Fund's Strategy View
No clearly defined investment philosophy at the PMS level, not sure how strictly the strategy is being implemented.
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 Core & Satellite – Investment Strategy
Axis’s Core & Satellite strategy aims to construct a balanced portfolio by combining two distinct investment styles—stable, brand-led compounders and cyclical return opportunities driven by efficient capital allocation.
Investment Thesis
- Core Allocation (50–70%) – Brand-Led Compounders: Focuses on fundamentally strong businesses with established brands. These companies are typically steady compounders, held with a long-term horizon (5+ years), and tend to exhibit lower beta, thereby providing stability to the overall portfolio.
- Satellite Allocation (30–50%) – Efficient Capital Allocators: Targets companies with a proven track record of superior capital allocation. This bucket typically includes businesses with cyclical earnings that are mispriced due to near-term factors. Satellite positions are held with a medium-term view (18–24 months) and are intended to act as return enhancers for the portfolio.
Investment Process
The investment universe is constructed using a combination of quantitative and qualitative screening. The process begins by defining two broad universes— a Brand Universe and a Capital Allocators Universe.
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Quantitative Screeners:
- Brand Filter: Companies with meaningful brand investments (advertising, marketing, communication, royalty, R&D expenses), growth rates higher than GDP growth, and returns exceeding the cost of capital.
- Capital Allocation Track Record: Assessment of sustained positive cash accruals to fund growth and evidence of capital being deployed efficiently to generate superior risk-adjusted returns.
- Qualitative Screeners: Evaluation through management interactions, competitive landscape analysis, industry visits, margin-of-safety assessment, and leveraging Axis–Schroders’ broader research and analytical capabilities.
PMS Background
Axis AMC PMS is part of Axis Asset Management, one of the larger mutual fund houses in India. The PMS platform benefits from the AMC’s strong research infrastructure, broker and corporate access, and extensive distribution capabilities. While this provides scale and process strength, the pedigree of the PMS is largely derived from the AMC’s mutual fund experience rather than from an investor–promoter–led heritage, which distinguishes it from more 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.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Axis AMC Core & Satellite | -1.4 | 11.2 | 12.5 | 12.1 |
| S&P BSE 500 | 4.9 | 14.6 | 17.2 | 15.3 |
| Alpha over Broad Mkt BM | -6.3 | -3.4 | -4.7 | -3.2 |
Performance as of: 30-Nov-25 | Inception Date: 11-Nov-19 | 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.
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