Axis Short Duration Fund

Debt

India Debt Liquid Market

Liquid

Others

Aggressive growth Investor Profile

Investor Profile

1–3 yearsInvestment Horizon

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

Axis Short Duration Fund Growth invests in short-term bonds, balancing safety with modest growth.

What This Strategy Does

Axis Short Duration Fund Growth is an India Fund Short Duration fund which captures India's ₹20 trillion fixed-income opportunity through active duration management, deploying capital across corporate and government bonds to achieve benchmark-aligned compounding.

CW Expert Research Notes

Consistent Outperformance Across Market Cycles

The fund has outperformed its average peer by an annualized 1.5 percentage points over a 10-year period, demonstrating resilience across market cycles by outperforming in 6 out of the last 12 years.

Stable Management Team Executing Differentiated Process

The fund's process benefits from a stable management team with no departures in the last 10 years, executing a differentiated approach with notable underweights in government bonds and overweights in AA-rated bonds relative to peers.

Attractive Portfolio Role for Downside Protection

With a higher average credit quality of AAA and no non-investment grade exposure, the fund is well-positioned to provide downside protection in portfolios, though the macro thesis conviction level is currently MEDIUM given the fund's fair valuation and potential risks from policy shifts or earnings revisions.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Fund Performance

-0.2% AnnuallyAlpha

+6.9% vs +9.9% benchmarkSince Inception

+7.3% vs +6.3% benchmark3Y Annualized

+6.2% vs +6.5% benchmark5Y Annualized

Axis Short Duration Fund

Benchmark Index

Benchmark Performance Comparison

Axis Short Term Fund

FD Returns

Risk Profile

Standard Deviation1.5%

Maximum Drawdown-0.0% | Aug 2025

Sharpe Ratio1.22

Beta1.27

Upside Capture100%

Detailed Risks

Market Risk

Potential recession and credit tightening could trigger corporate defaults, impacting fund's short-duration holdings.

Liquidity Risk

Volatility spikes or redemptions could strain liquidity, hindering rebalancing or exits.

Concentration Risk

Concentrated exposure to Indian financial sector poses risks from NPAs, regulatory changes.

Specific Product Risk

Underperformance risk if short-duration strategy fails to capitalize on rate movements.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Provides stability and income through exposure to high-quality, short-duration bonds. This approach captures the yield advantage of corporate credit while limiting interest rate risk and volatility. The impact is a steady income stream with lower drawdowns compared to longer-duration strategies. Suitable for investors seeking predictable returns and capital preservation.

Broader Market View

Market Outlook

With equity markets appearing to normalize after the recent correction, the present environment offers an attractive entry point as consumption and earnings recover. Cyclical sectors like consumer discretionary and financials stand to benefit from rising domestic demand and credit growth, though competitive pressures and margin risks persist.

Why This Product is Attractive Now

This fund appears well-positioned with exposure to market leaders across consumer, financial services, and technology. Its diversified ~70 holdings and moderate beta suggest a risk-adjusted stance aligned with the current cycle phase. The balanced mix of growth and stability names could allow for participation in the recovery while mitigating cyclicality.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth approach, emphasizing large-cap companies with durable competitive advantages and consistent earnings growth.

Why it Makes Sense

This style is well-suited for an environment of moderating economic growth, as quality companies can sustain pricing power and profitability through cycles.

High-Level Investment Process

Sourcing: Seeks companies with sustainable competitive advantages, strong balance sheets, and visible earnings growth catalysts. Selection: Emphasizes proven business models, recurring revenue streams, and attractive valuations relative to growth prospects. Construction: Aims for a diversified portfolio with prudent position sizing to manage risk.

Portfolio Holdings Overview

SectoralAllocation

Financial Services100%

Top Stock Holdings

CompanySectorAllocation

Clearing Corporation Of India LtdUtilities2.60%

National Bank For Agriculture And Rural DevelopmentUtilities2.34%

Power Finance Corporation LimitedUtilities2.09%

Punjab National BankUtilities1.98%

Small Industries Development Bank of IndiaUtilities1.98%

SIDDHIVINAYAK SECURITISATION TRUSTUtilities1.80%

6.48% Gs 2035Utilities1.74%

Indigrid Infrastructure TrustUtilities1.61%

Canara BankUtilities1.59%

Small Industries Development Bank of IndiaUtilities1.58%

Fund House Management

The asset management company’s track record, AUM scale, and fund manager credentials.

Fund Manager Track Record

Aditya Pagaria

Mr. Aditya Pagaria has experience of 19 years. Manages 210 funds at Axis Asset Management Company Limited with an AUM of approximately ₹14,583 Cr Holds a PGDBM degree.

41 years

Combined Team Experience

₹ 31,020 Cr

Assets Under Management

Devang Shah

Co-Portfolio Manager

Mr. Devang Shah has experience of 22 years. Manages 261 funds at Axis Asset Management Company Limited with an AUM of approximately ₹16,437 Cr Holds a B.Com degree.

CW Expert Take

Axis Short Duration Fund applies disciplined credit selection within a conservative risk framework. Their investment process emphasizes liquidity management and avoiding excessive duration risk. The fund house maintains focused expertise in short-term debt strategies, leveraging strong credit assessment capabilities to navigate interest rate cycles while prioritizing capital preservation.

Firm Overview

Total AUM₹3,61,984.16 Cr

Investment Philosophy & Approach

Disciplined Investment Approach

Axis AMC follows a disciplined investment approach focused on rigorous research and risk management.

Active Portfolio Construction

The fund house actively constructs portfolios through bottom-up security selection and top-down asset allocation.

Long-Term Orientation

Axis AMC maintains a long-term investment horizon, aiming to generate sustainable risk-adjusted returns.

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

Costs and Fees

Total Expense Ratio (TER)0.91%

Regulatory & Tax Information

INF846K01644

ISIN

DailyDealing Frequency

CRISIL Short Dur Debt A-II TR INRBenchmark

Capital Gain Tax | Taxed as per Income Tax Slab

Tax Implications (India)