Fixed Income Update

Quick Take:

  • RBI maintains neutral stance post February policy. Indicates fewer chances of rate cuts in the near term.

 

  • Money market and short term bonds are also beneficiaries of the abundant banking system liquidity

 

  • Investor should look to invest in short to medium term funds as a core portfolio allocation.  Investors who wish to participate in long bonds can look to do so through dynamic bond funds. 

Key events during the month were BJP’s landslide victory in crucial state elections and a widely expected US Fed rate hike of 25 bps. While the election results are unlikely to have a long-term material impact for bond markets, they have reinforced the rising probability of the current government getting re-elected in 2019 which could lead to continuity in the government’s policies as well as more support in the upper house of Parliament, which would be important in the execution of its reform agenda.

 

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Portfolio data as on 31st Mar, 2017.

Disclaimer: 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. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s).


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