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4 Best Debt Funds by Axis Mutual Fund 2026

Updated on June 28, 2026 , 10213 views

Debt funds are known for its attractive returns. These are a type of Mutual Funds that invest in fixed income securities like Government securities, Treasury bills, Corporate Bonds, etc.

There are various types of debt funds like Liquid Funds, ultra short term funds, short term funds, long term income funds offered by Axis Mutual Fund. These funds invest in different securities with different maturity, thus debt funds are a great option to plan your short to mid Financial goals.

Investors keen to invest in this scheme can choose from the listed top 4 Best Debt Funds by Axis Mutual Fund. These funds have been shortlisted by undertaking certain parameters like AUM, NAV, past performances, average maturity, duration, etc.

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Axis

Why Invest in Axis Mutual Fund?

  • Axis schemes are well-regulated, as SEBI regulates and monitors all investment activities to ensure and safeguard investors’ safety.

  • The fund managers at Axis Mutual Fund have a rich experience in making investment decisions. Their experience will help you grow your capital over a long term.

  • Debt funds like a liquid fund offered by Axis is highly liquid in nature also it is a low-risk investment option for risk-averse investors. Investors who want to earn regular income over a short-term can invest in this scheme.

Fund Selection Methodology used to find 4 funds

  • Category: Debt
  • Asset Management Company : Axis
  • Sorted On : drat (high to low)
  • Tags: fcpro
  • No Of Funds: 4

Best Axis Debt Mutual Funds

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2025 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Axis Credit Risk Fund Growth ₹23.1478
↑ 0.03
₹3542.947.988.78.63%2Y 1M 28D2Y 5M 23D
Axis Strategic Bond Fund Growth ₹29.9343
↑ 0.03
₹2,0672.93.56.67.98.28.39%3Y 22D4Y 6M 11D
Axis Liquid Fund Growth ₹3,091.98
↑ 1.97
₹56,1681.83.36.376.66.23%1M 5D1M 5D
Axis Dynamic Bond Fund Growth ₹31.4916
↑ 0.04
₹1,0263.946.17.47.17.28%5Y 11D10Y 8M 23D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 30 Jun 26

Research Highlights & Commentary of 4 Funds showcased

CommentaryAxis Credit Risk FundAxis Strategic Bond FundAxis Liquid FundAxis Dynamic Bond Fund
Point 1Bottom quartile AUM (₹354 Cr).Upper mid AUM (₹2,067 Cr).Highest AUM (₹56,168 Cr).Lower mid AUM (₹1,026 Cr).
Point 2Established history (11+ yrs).Established history (14+ yrs).Oldest track record among peers (16 yrs).Established history (15+ yrs).
Point 3Top rated.Rating: 4★ (upper mid).Rating: 4★ (lower mid).Rating: 3★ (bottom quartile).
Point 4Risk profile: Moderate.Risk profile: Moderate.Risk profile: Low.Risk profile: Moderate.
Point 51Y return: 7.89% (top quartile).1Y return: 6.57% (upper mid).1Y return: 6.34% (lower mid).1Y return: 6.06% (bottom quartile).
Point 61M return: 1.81% (lower mid).1M return: 1.92% (upper mid).1M return: 0.65% (bottom quartile).1M return: 2.55% (top quartile).
Point 7Sharpe: 0.68 (upper mid).Sharpe: -0.59 (lower mid).Sharpe: 2.39 (top quartile).Sharpe: -1.09 (bottom quartile).
Point 8Information ratio: 0.00 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (bottom quartile).
Point 9Yield to maturity (debt): 8.63% (top quartile).Yield to maturity (debt): 8.39% (upper mid).Yield to maturity (debt): 6.23% (bottom quartile).Yield to maturity (debt): 7.28% (lower mid).
Point 10Modified duration: 2.16 yrs (upper mid).Modified duration: 3.06 yrs (lower mid).Modified duration: 0.10 yrs (top quartile).Modified duration: 5.03 yrs (bottom quartile).

Axis Credit Risk Fund

  • Bottom quartile AUM (₹354 Cr).
  • Established history (11+ yrs).
  • Top rated.
  • Risk profile: Moderate.
  • 1Y return: 7.89% (top quartile).
  • 1M return: 1.81% (lower mid).
  • Sharpe: 0.68 (upper mid).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 8.63% (top quartile).
  • Modified duration: 2.16 yrs (upper mid).

Axis Strategic Bond Fund

  • Upper mid AUM (₹2,067 Cr).
  • Established history (14+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Moderate.
  • 1Y return: 6.57% (upper mid).
  • 1M return: 1.92% (upper mid).
  • Sharpe: -0.59 (lower mid).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 8.39% (upper mid).
  • Modified duration: 3.06 yrs (lower mid).

Axis Liquid Fund

  • Highest AUM (₹56,168 Cr).
  • Oldest track record among peers (16 yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.34% (lower mid).
  • 1M return: 0.65% (bottom quartile).
  • Sharpe: 2.39 (top quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.23% (bottom quartile).
  • Modified duration: 0.10 yrs (top quartile).

Axis Dynamic Bond Fund

  • Lower mid AUM (₹1,026 Cr).
  • Established history (15+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderate.
  • 1Y return: 6.06% (bottom quartile).
  • 1M return: 2.55% (top quartile).
  • Sharpe: -1.09 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 7.28% (lower mid).
  • Modified duration: 5.03 yrs (bottom quartile).

About the Fincash Research Team

At Fincash, our mission is to help investors make informed, confident decisions. With over 10 years in Mutual Fund distribution, our team blends deep industry expertise with a commitment to transparency, accuracy, and investor education.

Who We Are

AMFI Registration No.
112358
MCA CIN
U74999MH2016PTC282153
Location
Thane, Maharashtra, India
Experience
10+ years in Mutual Fund distribution

Our Expertise

  • Certified Mutual Fund Distributors with hands-on advisory experience.
  • Market analysts tracking performance, macro trends, and sectors.
  • Data specialists processing NAVs, allocations, and risk metrics from Morning Star.

Our Research Process

  • Data sourcing: SEBI-registered fund houses & verified third-party provider Morning Star
  • Screening: Returns, manager track record, expenses, sector mix, risk-adjusted metrics.
  • Expert review: Senior team members review every article and list for accuracy.
  • Updates: Regular refreshes so performance data reflects current market conditions.

Why Trust Us

  • Regulated & compliant: AMFI-registered and MCA-incorporated.
  • Investor-first: No pay-to-promote lists; suitability and performance drive coverage.
  • Education-focused: We simplify complex concepts for everyday investors.

Disclaimer

Content is for educational and informational purposes only and is not investment advice. Please consider your risk profile and consult a financial advisor before investing.

1. Axis Credit Risk Fund

(Erstwhile Axis Fixed Income Opportunities Fund)

To generate stable returns by investing in debt & money market instruments across the yield curve & credit spectrum. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The Scheme does not assure or guarantee any returns

Research Highlights for Axis Credit Risk Fund

  • Bottom quartile AUM (₹354 Cr).
  • Established history (11+ yrs).
  • Top rated.
  • Risk profile: Moderate.
  • 1Y return: 7.89% (top quartile).
  • 1M return: 1.81% (lower mid).
  • Sharpe: 0.68 (upper mid).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 8.63% (top quartile).
  • Modified duration: 2.16 yrs (upper mid).
  • Average maturity: 2.48 yrs (upper mid).
  • Exit load: 0-12 Months (1%),12 Months and above(NIL).

Below is the key information for Axis Credit Risk Fund

Axis Credit Risk Fund
Growth
Launch Date 15 Jul 14
NAV (30 Jun 26) ₹23.1478 ↑ 0.03   (0.14 %)
Net Assets (Cr) ₹354 on 31 May 26
Category Debt - Credit Risk
AMC Axis Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.57
Sharpe Ratio 0.68
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-12 Months (1%),12 Months and above(NIL)
Yield to Maturity 8.63%
Effective Maturity 2 Years 5 Months 23 Days
Modified Duration 2 Years 1 Month 28 Days
Sub Cat. Credit Risk

Growth of 10,000 investment over the years.

DateValue
30 Jun 21₹10,000
30 Jun 22₹10,361
30 Jun 23₹11,079
30 Jun 24₹11,871
30 Jun 25₹12,950
30 Jun 26₹13,972

Axis Credit Risk Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for Axis Credit Risk Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 30 Jun 26

DurationReturns
1 Month 1.8%
3 Month 2.9%
6 Month 4%
1 Year 7.9%
3 Year 8%
5 Year 6.9%
10 Year
15 Year
Since launch 7.3%
Historical performance (Yearly) on absolute basis
YearReturns
2025 8.7%
2024 8%
2023 7%
2022 4%
2021 6%
2020 8.2%
2019 4.4%
2018 5.9%
2017 6.4%
2016 9.8%
Fund Manager information for Axis Credit Risk Fund
NameSinceTenure
Devang Shah15 Jul 1411.89 Yr.
Akhil Thakker9 Nov 214.56 Yr.

Data below for Axis Credit Risk Fund as on 31 May 26

Asset Allocation
Asset ClassValue
Cash5.41%
Equity7.83%
Debt86.25%
Other0.51%
Debt Sector Allocation
SectorValue
Corporate78.23%
Government8.01%
Cash Equivalent5.41%
Credit Quality
RatingValue
A19.13%
AA63.7%
AAA17.17%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
6.48% Govt Stock 2035
Sovereign Bonds | -
7%₹24 Cr2,500,000
Jubilant Bevco Limited
Debentures | -
5%₹16 Cr1,500
Jtpm Metal TRaders Limited
Debentures | -
4%₹16 Cr1,500
Infopark Properties Limited
Debentures | -
4%₹15 Cr1,500
Narayana Hrudayalaya Limited
Debentures | -
4%₹15 Cr1,500
Aditya Birla Digital Fashion Ventures Limited
Debentures | -
4%₹15 Cr1,500
Altius Telecom Infrastructure Trust
Debentures | -
4%₹15 Cr1,500
Vedanta Limited
Debentures | -
3%₹12 Cr1,200
GMR Airports Limited
Debentures | -
3%₹10 Cr1,000
GMR Hyderabad International Airport Ltd
Debentures | -
3%₹10 Cr1,000

2. Axis Strategic Bond Fund

(Erstwhile Axis Income Fund)

To generate optimal returns in the medium term while maintaining liquidity of the portfolio by investing in debt and money market instruments.

Research Highlights for Axis Strategic Bond Fund

  • Upper mid AUM (₹2,067 Cr).
  • Established history (14+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Moderate.
  • 1Y return: 6.57% (upper mid).
  • 1M return: 1.92% (upper mid).
  • Sharpe: -0.59 (lower mid).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 8.39% (upper mid).
  • Modified duration: 3.06 yrs (lower mid).
  • Average maturity: 4.53 yrs (lower mid).
  • Exit load: 0-12 Months (1%),12 Months and above(NIL).

Below is the key information for Axis Strategic Bond Fund

Axis Strategic Bond Fund
Growth
Launch Date 28 Mar 12
NAV (30 Jun 26) ₹29.9343 ↑ 0.03   (0.10 %)
Net Assets (Cr) ₹2,067 on 31 May 26
Category Debt - Medium term Bond
AMC Axis Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.08
Sharpe Ratio -0.59
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-12 Months (1%),12 Months and above(NIL)
Yield to Maturity 8.39%
Effective Maturity 4 Years 6 Months 11 Days
Modified Duration 3 Years 22 Days
Sub Cat. Medium term Bond

Growth of 10,000 investment over the years.

DateValue
30 Jun 21₹10,000
30 Jun 22₹10,330
30 Jun 23₹11,105
30 Jun 24₹11,933
30 Jun 25₹13,075
30 Jun 26₹13,935

Axis Strategic Bond Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for Axis Strategic Bond Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 30 Jun 26

DurationReturns
1 Month 1.9%
3 Month 2.9%
6 Month 3.5%
1 Year 6.6%
3 Year 7.9%
5 Year 6.9%
10 Year
15 Year
Since launch 8%
Historical performance (Yearly) on absolute basis
YearReturns
2025 8.2%
2024 8.7%
2023 7.3%
2022 3.8%
2021 5.2%
2020 10.5%
2019 7.1%
2018 6.7%
2017 7.5%
2016 11.6%
Fund Manager information for Axis Strategic Bond Fund
NameSinceTenure
Devang Shah5 Nov 1213.58 Yr.
Sachin Jain1 Feb 233.33 Yr.
Akhil Thakker1 Feb 233.33 Yr.

Data below for Axis Strategic Bond Fund as on 31 May 26

Asset Allocation
Asset ClassValue
Cash5.3%
Equity3.49%
Debt90.92%
Other0.29%
Debt Sector Allocation
SectorValue
Corporate63.88%
Government27.04%
Cash Equivalent5.3%
Credit Quality
RatingValue
A13.31%
AA52.37%
AAA34.32%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.1% Govt Stock 2034
Sovereign Bonds | -
5%₹112 Cr11,200,000
Jubilant Beverages Limited
Debentures | -
3%₹70 Cr6,500
GMR Hyderabad International Airport Ltd
Debentures | -
3%₹66 Cr6,500
Tamilnadu State Development Loans
Sovereign Bonds | -
3%₹62 Cr6,358,600
Vedanta Limited
Debentures | -
3%₹60 Cr6,000
Jubilant Bevco Limited
Debentures | -
3%₹60 Cr5,500
Adani Power Limited
Debentures | -
3%₹60 Cr6,000
Nuvama Wealth Finance Limited
Debentures | -
3%₹58 Cr5,800
Delhi International Airport Limited
Debentures | -
3%₹55 Cr5,500
Aditya Birla Digital Fashion Ventures Limited
Debentures | -
3%₹55 Cr5,500

3. Axis Liquid Fund

To provide a high level of liquidity with reasonable returns commensurating with low risk through a portfolio of money market and debt securities. However there can be no assurance that the investment objective of the scheme will be achieved.

Research Highlights for Axis Liquid Fund

  • Highest AUM (₹56,168 Cr).
  • Oldest track record among peers (16 yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.34% (lower mid).
  • 1M return: 0.65% (bottom quartile).
  • Sharpe: 2.39 (top quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.23% (bottom quartile).
  • Modified duration: 0.10 yrs (top quartile).
  • Average maturity: 0.10 yrs (top quartile).
  • Exit load: NIL.

Below is the key information for Axis Liquid Fund

Axis Liquid Fund
Growth
Launch Date 9 Oct 09
NAV (30 Jun 26) ₹3,091.98 ↑ 1.97   (0.06 %)
Net Assets (Cr) ₹56,168 on 31 May 26
Category Debt - Liquid Fund
AMC Axis Asset Management Company Limited
Rating
Risk Low
Expense Ratio 0.23
Sharpe Ratio 2.39
Information Ratio 0
Alpha Ratio 0
Min Investment 500
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 6.23%
Effective Maturity 1 Month 5 Days
Modified Duration 1 Month 5 Days
Sub Cat. Liquid Fund

Growth of 10,000 investment over the years.

DateValue
30 Jun 21₹10,000
30 Jun 22₹10,361
30 Jun 23₹11,030
30 Jun 24₹11,839
30 Jun 25₹12,692
30 Jun 26₹13,498

Axis Liquid Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for Axis Liquid Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 30 Jun 26

DurationReturns
1 Month 0.7%
3 Month 1.8%
6 Month 3.3%
1 Year 6.3%
3 Year 7%
5 Year 6.2%
10 Year
15 Year
Since launch 7%
Historical performance (Yearly) on absolute basis
YearReturns
2025 6.6%
2024 7.4%
2023 7.1%
2022 4.9%
2021 3.3%
2020 4.3%
2019 6.6%
2018 7.5%
2017 6.7%
2016 7.6%
Fund Manager information for Axis Liquid Fund
NameSinceTenure
Devang Shah5 Nov 1213.58 Yr.
Aditya Pagaria13 Aug 169.81 Yr.
Sachin Jain3 Jul 232.92 Yr.

Data below for Axis Liquid Fund as on 31 May 26

Asset Allocation
Asset ClassValue
Cash99.8%
Other0.2%
Debt Sector Allocation
SectorValue
Cash Equivalent68.85%
Corporate24.16%
Government6.8%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
India (Republic of)
- | -
3%₹1,785 Cr179,500,000
↑ 4,500,000
National Bank for Agriculture and Rural Development
Commercial Paper | -
3%₹1,738 Cr35,000
Reliance Jio Infocomm Limited
Commercial Paper | -
3%₹1,498 Cr30,000
Tbill
Sovereign Bonds | -
3%₹1,494 Cr150,000,000
HDFC Bank Limited
Certificate of Deposit | -
2%₹1,291 Cr26,000
Bank of Baroda
Debentures | -
2%₹1,290 Cr26,000
↑ 6,000
National Bank For Agriculture And Rural Development
Commercial Paper | -
2%₹1,247 Cr25,000
India (Republic of)
- | -
2%₹1,230 Cr123,560,400
Tata Steel Ltd.
Commercial Paper | -
2%₹995 Cr20,000
Reliance Retail Ventures Limited
Commercial Paper | -
2%₹991 Cr20,000

4. Axis Dynamic Bond Fund

To generate optimal returns while maintaining liquidity through active management of a portfolio of debt and money market instruments.

Research Highlights for Axis Dynamic Bond Fund

  • Lower mid AUM (₹1,026 Cr).
  • Established history (15+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderate.
  • 1Y return: 6.06% (bottom quartile).
  • 1M return: 2.55% (top quartile).
  • Sharpe: -1.09 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 7.28% (lower mid).
  • Modified duration: 5.03 yrs (bottom quartile).
  • Average maturity: 10.73 yrs (bottom quartile).
  • Exit load: NIL.

Below is the key information for Axis Dynamic Bond Fund

Axis Dynamic Bond Fund
Growth
Launch Date 27 Apr 11
NAV (30 Jun 26) ₹31.4916 ↑ 0.04   (0.13 %)
Net Assets (Cr) ₹1,026 on 31 May 26
Category Debt - Dynamic Bond
AMC Axis Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.59
Sharpe Ratio -1.09
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.28%
Effective Maturity 10 Years 8 Months 23 Days
Modified Duration 5 Years 11 Days
Sub Cat. Dynamic Bond

Growth of 10,000 investment over the years.

DateValue
30 Jun 21₹10,000
30 Jun 22₹10,051
30 Jun 23₹10,888
30 Jun 24₹11,625
30 Jun 25₹12,720
30 Jun 26₹13,490

Axis Dynamic Bond Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for Axis Dynamic Bond Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 30 Jun 26

DurationReturns
1 Month 2.5%
3 Month 3.9%
6 Month 4%
1 Year 6.1%
3 Year 7.4%
5 Year 6.2%
10 Year
15 Year
Since launch 7.9%
Historical performance (Yearly) on absolute basis
YearReturns
2025 7.1%
2024 8.6%
2023 6.6%
2022 2.1%
2021 3.9%
2020 12.3%
2019 11%
2018 6.2%
2017 3.4%
2016 13.4%
Fund Manager information for Axis Dynamic Bond Fund
NameSinceTenure
Devang Shah5 Nov 1213.58 Yr.
Hardik Shah5 Apr 242.16 Yr.

Data below for Axis Dynamic Bond Fund as on 31 May 26

Asset Allocation
Asset ClassValue
Cash30.11%
Equity1.33%
Debt68.08%
Other0.48%
Debt Sector Allocation
SectorValue
Government57.34%
Corporate28.75%
Cash Equivalent12.1%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
6.9% Govt Stock 2065
Sovereign Bonds | -
10%₹106 Cr11,672,500
↑ 2,500,000
7.3% Govt Stock 2053
Sovereign Bonds | -
6%₹68 Cr7,000,000
6.68% Govt Stock 2040
Sovereign Bonds | -
4%₹47 Cr5,000,000
↑ 5,000,000
Power Finance Corporation Limited
Debentures | -
4%₹40 Cr4,000
↑ 4,000
Power Grid Corporation Of India Limited
Debentures | -
3%₹36 Cr5,000
7.09% Govt Stock 2054
Sovereign Bonds | -
3%₹33 Cr3,500,000
State Government Of Bihar
Sovereign Bonds | -
3%₹30 Cr3,000,000
7.24% Govt Stock 2055
Sovereign Bonds | -
3%₹29 Cr3,036,700
↓ -1,000,000
8.22% Karnataka Sdl 2031
Sovereign Bonds | -
2%₹26 Cr2,500,000
National Housing Bank
Debentures | -
2%₹24 Cr2,500

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Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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