Axis Mutual Fund sees more rate hikes and prefers short-duration debt
In short
Axis Mutual Fund expects interest rates to rise by another 50 to 75 basis points.
Because of that, it prefers high-quality corporate bonds with 3 to 5-year maturities and short-duration debt strategies. It may add longer duration only if bond yields improve further.
What the reporting says
Axis Mutual Fund expects another 50–75 bps of rate hikes and is favouring high-quality corporate bonds with 3–5-year maturities and short-duration debt strategies. It also sees room to add duration selectively as bond yields become more attractive. The view points to a cautious stance on longer-duration debt products.
Why it matters
Axis Mutual Fund expects another 50–75 bps of rate hikes and is leaning toward high-quality corporate bonds with 3–5-year maturities and short-duration debt strategies. It also says it may add duration selectively as bond yields become more attractive. The view is relevant for debt mutual fund investors, especially those choosing between shorter and longer maturity funds in a rising-rate setting.