The Scheme seeks to provide steady income and capital appreciation by investing in corporate debt. There is no assurance or guarantee that the objectives of the Scheme will be realized.Suitable for those who are looking at investing for a shorter duration product and looking at options better than traditional instruments while maintaining liquidity.
3. Led by strong capital flows and service exports
Current Account back into Surplus
3
• QE June current account balance
reverts to surplus of 0.9% of GDP
from a deficit of 1% of GDP in QE
March
• The overall BoP surplus widened
considerably to 4.6% of GDP in QE
June from 0.4% in QE March.
• Surplus current account provides a
much needed cushion during times
of uncertainty
• With crude at US$80/barrel &
USD/INR showing initial weakness,
the economy, today, remains
significantly better insulated from
external shocks
Source: CEIC, Morgan Stanley Research
4. Acting on Liquidity
RBI Monetary Policy
4
In its strongest affirmation yet,
the RBI has finally set out a
glide path for withdrawing
liquidity in a gradual and
calibrated manner.
• Withdrawal of G-SAP program
• Increasing VRRR* to Rs 6 lakh Cr
by Dec 3.
• May supplement 14-day repos
with 28-day repos
Setting the Stage for
Policy Normalization..
• Precursor to a possible reverse
repo hike
• Resumption of free market pricing
in the long bond space
• Targeted liquidity management
through on tap OMOs
..Through a calibrated
approach to avoid system
shocks
*VRRR: Variable Rate Reverse Repo
Source of Data: RBI Governor’ Statement, RBI Monetary Policy Statement & RBI post policy press conference dated 8th October
2021, Axis MF Research
5. RBI’s Action is in Lock-Step with our forecasts so far
RBI’s path to normalization
Source: RBI, Axis MF Research
Phase 2
Narrow repo/ reverse
repo corridor
Calibrated withdrawal in durable
liquidity via variable reverse repos
(VRR) sucking out the liquidity cushion
that has been in place since March
2019
Simultaneous rate hikes across Repo and
Reverse Repo which we anticipate will
happen in CY 22. Market rates will also likely
trend higher toeing RBI action.
Repo/reverse repo corridor currently
stands at 65 bps. Through a series
of gradual hikes in the reverse repo
rate we anticipate that the spread is
likely to normalize to 25bps (The
long term average)
Phase 1
Sucking out
Excess Liquidity
Phase 3
Normalize Rates
We are in Phase 1 of the Normalization Process
RBI Has targeted to withdraw 2-3 lakh Cr of liquidity by December 2021
5
6. Worst may be behind us
Inflation
Source: Bloomberg, Axis MF Research. Data as of 30th September 2021
• A better than expected Kharif Crop and supply side actions by the government have contained food inflation
• The RBI has lowered its forecasts for inflation to 5.3%. The withdrawal of accommodative policy is likely to put further downward
pressure on inflation
• Crude and commodity prices remain key risks to inflation
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 Aug-21
CPI Inflation since Covid has been averaging near RBI’s upper band
Inflation Average 6%
Inflation Average 4%
6
7. High system liquidity have been driving yields lower
Rates Action
Source: Bloomberg, CCIL, Axis MF Research. Data as of October 6th 2021
• Liquidity, stands at a level equivalent to ~4 years
of normal liquidity requirements.
• Steps by the RBI aim to bring that down
meaningfully by December 2021.
• RBI propelled rates at the short end closer to
policy rates in latest repo auctions by setting limits
close to the policy rate of 4%
• Clear indication that RBI wants money market
rates to trade meaningfully higher
• Latest VRRR auction for instance saw the RBI
conduct operations at a weighted average rate of
3.65% meaningfully higher than current market
levels.
-100,000
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
5.50%
6.00%
6.50%
7.00%
Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Sep-21
Primary reason for fall in yields has been the
sharp rise in system liquidity
System Liquidity (RHS) Monthly Average Call Rate
Repo Reverse Repo
7
8. Sowing levels similar to those in 2020
Monsoons in Withdrawal Mode, Record Kharif Crop Expected
Monsoon Update
Source: Ministry of Agriculture, Indian Metrological Department, Axis MF Research
Data as of 8th October 2021
• Till September 29th, cumulative rainfall was at the long-term
average
• The 1st advance estimates indicate food grains production
will likely be 4.1% higher at 150.5 mn tons (record high)
• With reservoir levels across the country at comfortable
levels the withdrawal of the monsoons puts an end to a
normal albeit delayed monsoon cycle
8
As on Sept. 24, 2021 2021 2020 Change (%)
Rice 42.0 41.5 1.4
Pulses 14.2 13.9 2.1
Coarse cereals 17.6 18.0 (2.5)
Oilseeds 19.5 19.8 (1.3)
Sugarcane 5.5 5.4 2.0
Jute & Mesta 0.7 0.7 1.0
Cotton 12.0 12.8 (6.1)
Total 111.5 112.0 (0.5)
10. 3 Year/ 5 Year Space has seen maximum pain so far
Rising yields
10
Source: Bloomberg, Axis MF Research.
Change in yields between 31st December 2020 & 30th September 2021. AAA PSU curve used for illustrative purposes.
Past performance may or may not be sustained in the future.
48
17
22
36
64
56
22
1 Month 3 Month 6 Month 1 Year 3 Year 5 Year 10 Year
Spike in Yields more pronounced in segments where yields had fallen the most
Largest change in yields across the curve
• Spike in yields part of a wider normalization of the yield curve, partly orchestrated by the RBI through various intervention measures
currently in place.
• A similar pattern in rising rates has been witnessed across the G-Sec & Credit curves.
11. • During the pandemic and its aftermath, the short end of
the yield curve across the spectrum saw a sharp 300bps.
Long bonds remained largely anchored
• 3X10 year spreads continue to trade at historic levels
• As short end yields retrace in line with the RBI’s push to
normalize rates, long bonds are likely to see a limited
impact
• Fiscal risks make roll down corporate bond strategies
especially attractive.
Attractive ‘Carry’ Play
Long Bonds
11
Source: Bloomberg, Axis MF Research
Data as of 30th September 2021
0
50
100
150
200
250
Sep-17 Sep-18 Sep-19 Sep-20 Sep-21
3x10 Year Spreads remain historically high
12. Axis Short Term Fund
83% AAA & Equivalent ,17%
Non AAA
Mac. Duration – 1.81 years
YTM – 4.90%*
Axis Corporate Bond Fund
100% AAA & Equivalent
Mac. Duration – 1.90 years
YTM – 5.05%*
Axis Strategic Bond Fund
57% AAA, 43% Non AAA
Mac. Duration – 2.90 years
YTM – 6.35%*
Axis Credit Risk Fund
36% AAA, 64% Non AAA
Mac. Duration – 1.72 years
YTM – 6.47%*
Fund Positioning
Product Offerings
12
Credit Conservative
Strategic Allocation to AA Credits
Current Portfolio Allocation/Positioning is based on the prevailing market conditions and is subject to changes depending on the fund
manager’s view of the fixed income markets without any notice to investors. Please refer SID of respective schemes for detailed investment
strategies. *The yield to maturity and Macaulay duration given above is based on the portfolio of funds As on 30th September 2021. This
should not be taken as an indication of the returns that may be generated by the fund and the securities bought by the fund may or may not
be held till their respective maturities. $ Exposure includes Cash & NCA and G-Sec.
13. When Opportunity Knocks, Make the smart
move.
Axis Corporate Debt Fund
13
Investment Focus
The fund endeavours to capture opportunities by
investing in best ideas across the corporate bond curve.
Today, we follow a barbell strategy where we have a mix
of long AAA corporate bonds/G-Secs and short term
assets such that the portfolio maturity remains between
1-3 years
The strategy follows 4 main traits
• Diversification
• Self-liquidating nature of portfolios
• Buy when the spreads between AA and AAA are
attractive from risk reward perspective
Current Portfolio Allocation/Positioning is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the fixed income markets without
any notice to investors.
14. Current Portfolio Strategy
Axis Corporate Debt Fund
14
Current Portfolio Allocation/Positioning is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the fixed income markets without any
notice to investors. Please refer SID of respective schemes for detailed investment strategy. In accordance with regulations and SID of the scheme. The graphic should be used for illustrative
purposes only.
Even
Ladder
Roll
Down
(Maturity
Matching)
Barbell
Mix of long duration bonds and short tenor papers
while maintaining overall portfolio maturity
• The barbell strategy is used to take advantage of
the best aspects of short-term and long-term
bonds.
• In this strategy only very short-term and
extremely long-term bonds are purchased.
• Longer dated bonds typically offer higher interest
yields, while short-term bonds provide more
flexibility.
• Currently the fund holds a mix of AAA corporate
bonds and G-Secs with a maturity of 7-10 years
and ≤18 month papers
15. We follow a clearly defined process targeting Risk
Approach to ‘Credits’
15
Well researched
credit universe
• Based on Liquidity analysis, In-
depth review of company
financials and regular interactions
with the management
Spread the exposure
across sectors
• Very cautious at selecting
sectors
• Diversifying the exposure to
manage potential risk
Lower maturity
credits
• Pure accrual play with buy and
hold approach
• No active duration call in lower
rated papers
Exposure Limits
• Strict internal limits at issuer
level and rating level
16. 30th September 2021
Portfolio Facts
Current Portfolio Allocation/Positioning is based on the prevailing market conditions and is subject to changes depending on the fund
manager’s view of the fixed income markets without any notice to investors.
Portfolio Statistics
Average Maturity 2.68 years
Macaulay Duration 1.90 years
Modified Duration 1.82 years
YTM 5.05%
Instrument wise holdings
Corporate Bond 64.75%
Government Bond 10.64%
State Government Bond 6.67%
Zero Coupon Bond 4.08%
Floating Rate Note 2.73%
Treasury Bill 2.44%
Certificate of Deposit 1.77%
Commercial Paper 0.81%
Debt Securities 0.77%
Net Current Assets 5.33%
Rating- wise holdings
Sovereign/ AAA &
equivalent$
100%
16
29.98
36.36
11.74
15.83
Upto 12 months 1 to 3 years 3 to 5 years Above 5 years
While portfolio maturity is <2 years. Allocations are skewed between
short bonds and long maturity bonds
17. 30th September 2021
Performance
17
Past performance may or may not be sustained in future. Since inception (13th July 2017). Different plans have different expense structure. Devang Shah is managing the scheme since
inception and he manages 20 schemes of Axis Mutual Fund. Returns greater than 1 year are Compounded Annual Growth Rates (CAGR). Inception date of the fund 13th July 2017. Face value
per unit is Rs 10. Please refer annexure for performance of other schemes managed by the fund manager.
1 Year 3 Year 5 Year Since Inception
CAGR
(%)
Current Value
of investment
of Rs. 10,000
CAGR
(%)
Current Value
of investment
of Rs. 10,000
CAGR
(%)
Current
Value of
investment
of Rs. 10,000
CAGR
(%)
Current
Value of
investment
of Rs. 10,000
Axis Corporate Debt Fund - Regular
Plan - Growth
5.61% 10,561 7.78% 12,527 NA NA 7.43% 13,533
NIFTY Corporate Bond Index
(Benchmark)
6.95% 10,695 9.62% 13,181 NA NA 7.98% 13,824
NIFTY 10 yr Benchmark G-Sec
(Additional Benchmark)
3.64% 10,364 8.65% 12,833 NA NA 5.33% 12,449
19. Refer slide 22 for disclaimer.
Return of schemes managed by Devang Shah (Total Schemes Managed: 20 Schemes) (As on 30th September 2021)
Fund Name
Date of
inception
1 Year 3 Years 5 Years Since Inception
CAGR
(%)
Current
Value of
Investment
of Rs. 10,000/-
CAGR
(%)
Current
Value of
Investment
of Rs. 10,000/-
CAGR
(%)
Current
Value of
Investment
of Rs. 10,000/-
CAGR
(%)
Current
Value of
Investment
of Rs. 10,000/-
Axis Corporate Debt Fund - Regular Plan -
Growth
13-Jul-17
5.61% 10,561 7.78% 12,527 NA NA 7.43% 13,533
NIFTY Corporate Bond Index (Benchmark) 6.95% 10,695 9.62% 13,181 NA NA 7.98% 13,824
NIFTY 10 yr Benchmark G-Sec (Additional
Benchmark)
3.64% 10,364 8.65% 12,833 NA NA 5.33% 12,449
Axis Corporate Debt Fund - Direct Plan - Growth
13-Jul-17
6.32% 10,632 8.56% 12,804 NA NA 8.27% 13,982
NIFTY Corporate Bond Index (Benchmark) 6.95% 10,695 9.62% 13,181 NA NA 7.98% 13,824
NIFTY 10 yr Benchmark G-Sec (Additional
Benchmark)
3.64% 10,364 8.65% 12,833 NA NA 5.33% 12,449
SEBI Prescribed Performance Annexures
Annexure
19
20. SEBI Prescribed Performance Annexures
Annexure
20
Refer slide 22 for disclaimer.
Return of schemes managed by Devang Shah (Total Schemes Managed: 20 Schemes) (As on 30th September 2021)
Fund Name
Date of
inception
1 Year 3 Years 5 Years Since Inception
CAGR
(%)
Current
Value of
Investment
of Rs. 10,000/-
CAGR
(%)
Current
Value of
Investment
of Rs. 10,000/-
CAGR
(%)
Current
Value of
Investment
of Rs. 10,000/-
CAGR
(%)
Current
Value of
Investment
of Rs. 10,000/-
Top 3 Schemes
Axis Regular Saver Fund - Regular Plan -
Growth
16-Jul-10
17.93% 11,793 9.03% 12,972 7.54% 14,383 8.21% 24,243
NIFTY 50 Hybrid Short Duration Debt 25:75
Index (Benchmark)
17.44% 11,744 11.61% 13,916 10.25% 16,297 9.66% 28,144
NIFTY 10 yr Benchmark G-Sec (Additional
Benchmark)
3.64% 10,364 8.65% 12,833 5.97% 13,366 6.80% 20,918
Axis Regular Saver Fund - Direct Plan - Growth
04-Jan-13
19.27% 11,927 10.13% 13,367 8.72% 15,193 9.94% 22,906
NIFTY 50 Hybrid Short Duration Debt 25:75
Index (Benchmark)
17.44% 11,744 11.61% 13,916 10.25% 16,297 10.07% 23,136
NIFTY 10 yr Benchmark G-Sec (Additional
Benchmark)
3.64% 10,364 8.65% 12,833 5.97% 13,366 6.87% 17,873
Axis Credit Risk Fund - Regular Plan - Growth
15-Jul-14
7.49% 10,749 6.67% 12,146 6.42% 13,651 7.51% 16,860
NIFTY Credit Risk Bond Index (Benchmark) 9.94% 10,994 10.01% 13,326 8.72% 15,194 9.35% 19,063
NIFTY 10 yr Benchmark G-Sec (Additional
Benchmark)
3.64% 10,364 8.65% 12,833 5.97% 13,366 7.85% 17,258
Axis Credit Risk Fund - Direct Plan - Growth
15-Jul-14
8.60% 10,860 7.86% 12,557 7.70% 14,495 8.73% 18,296
NIFTY Credit Risk Bond Index (Benchmark) 9.94% 10,994 10.01% 13,326 8.72% 15,194 9.35% 19,063
NIFTY 10 yr Benchmark G-Sec (Additional
Benchmark)
3.64% 10,364 8.65% 12,833 5.97% 13,366 7.85% 17,258
Axis Strategic Bond Fund - Regular Plan -
Growth
28-Mar-12
7.42% 10,742 8.23% 12,685 7.58% 14,414 8.59% 21,903
NIFTY Medium Duration Debt Index
(Benchmark)
7.15% 10,715 10.23% 13,404 8.12% 14,779 8.90% 22,503
NIFTY 10 yr Benchmark G-Sec (Additional
Benchmark)
3.64% 10,364 8.65% 12,833 5.97% 13,366 7.35% 19,642
Axis Strategic Bond Fund - Direct Plan - Growth
07-Jan-13
8.18% 10,818 8.97% 12,949 8.31% 14,906 9.22% 21,612
NIFTY Medium Duration Debt Index
(Benchmark)
7.15% 10,715 10.23% 13,404 8.12% 14,779 8.61% 20,570
NIFTY 10 yr Benchmark G-Sec (Additional
Benchmark)
3.64% 10,364 8.65% 12,833 5.97% 13,366 6.84% 17,825
21. SEBI Prescribed Performance Annexures
Annexure
21
Refer slide 22 for disclaimer.
Fund Name
Date of
inception
1 Year 3 Years 5 Years Since Inception
CAGR
(%)
Current
Value of
Investment
of Rs. 10,000/-
CAGR
(%)
Current
Value of
Investment
of Rs. 10,000/-
CAGR
(%)
Current
Value of
Investment
of Rs. 10,000/-
CAGR
(%)
Current
Value of
Investment
of Rs. 10,000/-
Bottom 3 Schemes
Axis Liquid Fund - Regular Plan - Growth
09-Oct-09
3.20% 10,320 5.08% 11,604 5.83% 13,277 7.23% 23,095
NIFTY Liquid Index (Benchmark) 3.42% 10,342 5.07% 11,600 5.74% 13,223 7.19% 22,973
NIFTY 1 Year T-Bill Index (Additional
Benchmark)
4.25% 10,425 6.51% 12,084 6.47% 13,685 6.70% 21,745
Axis Liquid Fund - Direct Plan - Growth
31-Dec-12
3.27% 10,327 5.14% 11,625 5.90% 13,320 7.11% 18,245
NIFTY Liquid Index (Benchmark) 3.42% 10,342 5.07% 11,600 5.74% 13,223 6.96% 18,017
NIFTY 1 Year T-Bill Index (Additional
Benchmark)
4.25% 10,425 6.51% 12,084 6.47% 13,685 7.10% 18,228
Axis Liquid Fund - Retail Plan - Growth
01-Mar-10
2.68% 10,268 4.57% 11,436 5.29% 12,939 6.85% 21,548
NIFTY Liquid Index (Benchmark) 3.42% 10,342 5.07% 11,600 5.74% 13,223 7.31% 22,665
NIFTY 1 Year T-Bill Index (Additional
Benchmark)
4.25% 10,425 6.51% 12,084 6.47% 13,685 6.80% 21,431
Axis Gold ETF
10-Nov-10
-9.28% 9,072 13.83% 14,767 6.24% 13,537 6.39% 19,643
Domestic Price of Gold (Benchmark) -9.05% 9,095 14.59% 15,062 7.59% 14,421 7.77% 22,595
Axis Gold Fund - Regular Plan - Growth
20-Oct-11
-9.28% 9,072 13.85% 14,774 6.48% 13,689 3.54% 14,139
Domestic Price of Gold (Benchmark) -9.05% 9,095 14.59% 15,062 7.59% 14,421 5.74% 17,429
Axis Gold Fund - Direct Plan - Growth
01-Jan-13
-9.04% 9,096 14.18% 14,904 6.98% 14,015 3.33% 13,322
Domestic Price of Gold (Benchmark) -9.05% 9,095 14.59% 15,062 7.59% 14,421 4.76% 15,022
22. Past Performance may or may not be sustained in future.
#Scheme Performance may not be strictly comparable with that of its additional benchmark in view of hybrid nature of the scheme.
Data As on 30th September 2021.
Past performance may or may not be sustained in future. Calculations are based on Regular Plan - Growth Option NAV and Direct
Plan - Growth Option NAV, as applicable. Face Value per unit: 1,000/- for Axis Liquid Fund, Axis Treasury Advantage Fund, Axis Money
Market Fund, Axis Overnight Fund and Axis Banking & PSU Debt Fund, Rs. 1/- for Axis Gold ETF, Axis AAA Bond Plus SDL ETF - 2026
Maturity, Rs. 10/- for Axis Nifty ETF, Axis Healthcare ETF, Rs. 100/- for Axis Banking ETF, Axis Technology ETF and Rs. 10/- for all other
schemes. Different plans have different expense structure.
• Devang Shah is managing Axis Liquid Fund, Axis Dynamic Bond Fund, Axis Gilt Fund , Axis Strategic Bond Fund and Axis Short Term
Fund, Axis Credit Risk Fund and Axis Arbitrage Fund since inception and Axis Treasury Advantage Fund and Axis Regular Saver Fund
(Debt portion), Axis Gold Fund, Axis Gold ETF , all Axis Fixed Term Plans since 7th June, 2016 (since inception date for Axis Fixed
Term Plans launched after 7th June, 2016) and Axis Corporate Debt Fund since July 13th, 2017, Axis Money Market Fund since
inception.
Performance disclaimer
22
25. Past performance may or may not be sustained in the future.
Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be
construed as recommendation. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time.
Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd.
(liability restricted to Rs. 1 Lakh).
Trustee: Axis Mutual Fund Trustee Ltd.
Investment Manager: Axis Asset Management Co. Ltd. (the AMC).
Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme. This
document represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision.
Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates
shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No
representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The
AMC reserves the right to make modifications and alterations to this statement as may be required from time to time.
Mutual Fund Investments are subject to market risks, read all scheme related documents
carefully.
Statutory Details and Risk Factors
25