Axis Mutual Fund Shifts Strategy to Shorter Term Corporate Bonds as Rate Cuts Expected to Pause
Axis Mutual Fund is pivoting toward a carry strategy for 2026 by focusing on corporate bonds. The move comes as interest rates are expected to remain stable.
Insights:
Axis Mutual Fund has announced a new carry-heavy debt strategy for 2026 focusing on India 1–3 Year Corporate Bonds . This move is driven by expectations that the Reserve Bank of India will not cut interest rates further in the near term. This strategic shift aims to generate income from higher-yielding shorter-dated debt in a stable rate environment across India 
IN.
IN.Devang Shah devang shah, the head of fixed income at Axis Mutual Fund, manages debt assets totaling 1.2 trillion rupees. Under the new plan, roughly 75% of the portfolio could be invested in India 1–3 Year Corporate Bonds. The remaining 25% of the allocation may be placed in longer duration state and central government debt, such as the India 10-Year Government Bond . This strategy takes into account current banking liquidity and the US Dollar / Indian Rupee exchange rate.
