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

What This Strategy Does

Axis Ultra Short Duration Fund Regular Growth is an Ultra Short Duration fund which captures India's ₹6 trillion ultra short-term fixed income opportunity through active duration management, deploying capital across high-quality corporate and government bonds to achieve benchmark-aligned compounding.

CW Expert Research Notes

Consistent Outperformance

The fund has demonstrated a consistent ability to outperform its Morningstar category peers across multiple time periods, reflecting the effectiveness of its investment process and the team's execution capabilities.

Differentiated Positioning

The fund's portfolio construction approach, with a focus on corporate bonds and a moderate allocation to government securities, sets it apart from peers and allows for potential alpha generation through active sector rotation and security selection.

Resilient Downside Behavior

The fund's low volatility and strong downside protection characteristics, as evidenced by its favorable risk-adjusted performance metrics, position it as a potential risk-mitigating allocation within a broader fixed income portfolio.

Performance and Risk Analysis

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

Fund Performance

-0.4% AnnuallyAlpha

+5.9% vs +9.7% benchmarkSince Inception

+6.6% vs +6.6% benchmark3Y Annualized

+5.9% vs +6.6% benchmark5Y Annualized

Axis Ultra Short Duration Fund

Benchmark Index

Benchmark Performance Comparison

Axis Ultra Short Term Fund

FD Returns

Risk Profile

Standard Deviation0.3%

Sharpe Ratio0.46

Beta0.94

Upside Capture90%

Detailed Risks

Market Risk

Potential recession triggered by aggressive rate hikes could impact credit quality.

Liquidity Risk

Volatility spikes in short-term debt markets could impair fund rebalancing.

Concentration Risk

Concentrated exposure to Indian financial sector poses earnings risks from NPAs.

Specific Strategy Risk

Regulatory changes to ultra short-term debt holdings could impact yields.

Strategy Details

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

Core Investment Theme

Provides exposure to India's ultra-short duration fixed income securities, offering liquidity and stability with modest returns. This approach captures yield from high-quality corporate and government bonds with maturities under one year, minimizing interest rate risk. The impact is a low-volatility portfolio that preserves capital while generating income, suitable for investors seeking a liquid cash alternative with limited downside risk.

Broader Market View

Market Outlook

Equity markets appear to be entering a mid-cycle phase, with an attractive entry point emerging as consumption and earnings normalize. Key drivers such as capex revival and credit growth are aligning with the strategy's tilt towards consumer, financial services, and technology sectors, though risks like competition and cyclicality persist.

Why This Strategy is Attractive Now

The strategy seems well-positioned, with exposure to market leaders across consumer cyclicals/defensives, financials, and technology. Its diversification across around 70 holdings, balanced between growth and stability, coupled with a moderate beta and flexibility, appears conducive to risk-adjusted participation in the current environment.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations relative to their long-term potential.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth approach can provide exposure to companies with resilient business models and pricing power, potentially offering downside protection while participating in secular growth opportunities.

High-Level Investment Process

Sourcing: The strategy appears to focus on companies with strong franchises, sustainable competitive advantages, and attractive growth runways, sourced through rigorous fundamental research and analysis. Selection: The selection process suggests a preference for companies with consistent profitability, robust cash flow generation, and reasonable valuations relative to their growth prospects, while emphasizing quality characteristics such as strong balance sheets and experienced management teams. Construction: The portfolio construction appears to balance sector diversification with a focus on high-conviction holdings, aiming to manage risk through position sizing and regular portfolio reviews, while maintaining a long-term investment horizon.

Portfolio Holdings Overview

SectoralAllocation

Financial Services100%

Top Stock Holdings

CompanySectorAllocation

Clearing Corporation Of India LtdUtilities11.20%

Punjab National BankUtilities5.56%

Federal Bank Ltd.Utilities4.41%

Rec LimitedUtilities3.82%

National Bank For Agriculture And Rural DevelopmentUtilities3.63%

National Bank For Agriculture And Rural DevelopmentUtilities3.44%

Small Industries Dev Bank Of IndiaUtilities3.43%

Kotak Mahindra Bank Ltd.Utilities3.01%

HDFC Bank LimitedUtilities2.61%

Bank Of BarodaUtilities2.21%

Fund House Management

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

Fund Manager Track Record

Sachin Jain

Mr. Sachin Jain has experience of 17 years. Manages 134 funds at Axis Asset Management Company Limited with an AUM of approximately ₹15,551 Cr Holds a B.Tech degree.

35 years

Combined Team Experience

₹ 22,760 Cr

Assets Under Management

Hardik Shah

Co-Portfolio Manager

Mr. Hardik Shah has experience of 17 years. Manages 180 funds at Axis Asset Management Company Limited with an AUM of approximately ₹7,209 Cr Holds a B.E. degree.

CW Expert Take

Axis operates with entrepreneurial agility despite institutional backing. Their investment philosophy emphasizes quality compounding in equities and prudent credit selection in debt. The fund house has built focused expertise rather than chasing asset gathering, resulting in concentrated portfolios with high-conviction ideas.

Firm Overview

Total AUM₹3,61,984.16 Cr

Investment Philosophy & Approach

Disciplined Approach

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

Risk Management

Robust risk management framework with emphasis on downside protection.

Long-Term Mindset

Axis AMC maintains a long-term investment horizon for capital allocation.

Operational & Regulatory Details

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

Costs and Fees

Total Expense Ratio (TER)1.21%

Regulatory & Tax Information

INF846K01G23

ISIN

DailyDealing Frequency

CRISIL Ultra Short Dur Debt A-I TR INRBenchmark

Capital Gain Tax | Taxed as per Income Tax Slab

Tax Implications (India)