The normally-reliant Axis Long Term Equity has been rather subdued over the last two years. In 2022 alone, the fund plunged by more than 11 per cent. Its weak two-year performance has also dragged its star rating from four to two. The last time the fund trailed the category was in 2016 and 2017, but that was by a negligible margin. In all other calendar years, the fund has always remained comfortably ahead of the category median. And this is why Jinesh Gopani, the fund manager, remains sanguine. As pointed out by him in his recent interview, the fund faced similar bumps in the year 2016 but then rebounded in style. Like then, he anticipates the good times to follow soon. Despite the recent underperformance, the return-since-launch number stands at over 15 per cent. Meaning anyone who invested Rs 1 lakh at the launch of the fund (regular plan) at the end of 2009 would now have Rs 6.50 lakh. That's the best among all tax-saving funds during this period. An average peer would have turned an investment of Rs 1 lakh to Rs 4.40 lakh, giving an annualised return of little more than 12 per cent. While the recent underperformance is discomforting and its trickle-down effect has now started impacting its long-term returns, its foundation remains intact. The direct plan of the fund continues to beat an average peer more than 90 per cent
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