Axis Money IQ Knowledge Nugget - 126

Fund Focus - Banking & PSU Debt Fund

Banking & PSU Debt Fund – Recap

• In 2018, as the NBFC crisis broke out, the interest rate scenario turned opportunistic
• We introduced a 3.5-year corporate bond strategy in our Banking & PSU Debt Fund.
• The strategy offered a high-quality portfolio and defined ‘carry’ potential in times of extreme uncertainty.
• Was ideally suited for investors looking to navigate the prevailing interest rate volatility.

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Current Positioning

• Repositioning likely over the next quarter.
• Incremental flows, accruals and maturities are deployed in bank CD’s and residual maturity bonds.
• Global headwinds and inflation have driven market yields materially higher. Markets extremely volatile.
• As markets settle, we are looking forward to attractive redeployment opportunities in the 3-5-year segment over the next few months.Continue Reading

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Statutory Details:?Axis Mutual Fund has been established as a Trust under the Indian Trust Act 1882, sponsored by Axis Bank Ltd. (liability restricted to ?1 Lakh).?Trustee:?Axis Mutual Fund Trustee Ltd.?Investment Manager:?Axis Asset Management Co. Ltd. (the AMC)?Risk Factors:?Axis Bank Ltd. Is not liable or responsible for any loss or shortfall resulting from the operation of the scheme.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.