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4 Best Debt Funds by Axis Mutual Fund 2025

Updated on April 15, 2025 , 9615 views

Debt fund 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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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.

Best Axis Debt Mutual Funds

Fund	NAV	Net Assets (Cr)	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	2023 (%)	Debt Yield (YTM)	Mod. Duration	Eff. Maturity
Axis Credit Risk Fund Growth	₹21.0848 ↑ 0.01	₹381	2.7	4.4	8.9	7.1	8	8.5%	2Y 3M	2Y 10M 20D
Axis Strategic Bond Fund Growth	₹27.6601 ↑ 0.03	₹1,987	3.3	4.9	9.9	7.7	8.7	8.05%	3Y 6M 11D	5Y
Axis Liquid Fund Growth	₹2,872.2 ↑ 0.96	₹42,867	1.9	3.7	7.3	6.8	7.4	7.17%	1M 9D	1M 9D
Axis Dynamic Bond Fund Growth	₹29.4527 ↑ 0.03	₹1,360	4.2	5	10.3	7.6	8.6	7.13%	7Y 11M 19D	18Y 7M 20D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 Apr 25

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

Axis Credit Risk Fund is a Debt - Credit Risk fund was launched on 15 Jul 14. It is a fund with Moderate risk and has given a CAGR/Annualized return of 7.2% since its launch. Ranked 4 in Credit Risk category. Return for 2024 was 8% , 2023 was 7% and 2022 was 4% .

Below is the key information for Axis Credit Risk Fund

Axis Credit Risk Fund Growth
Launch Date	15 Jul 14
NAV (17 Apr 25)	₹21.0848 ↑ 0.01 (0.06 %)
Net Assets (Cr)	₹381 on 28 Feb 25
Category	Debt - Credit Risk
AMC	Axis Asset Management Company Limited
Rating	☆☆☆☆☆
Risk	Moderate
Expense Ratio	1.58
Sharpe Ratio	1.83
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	8.5%
Effective Maturity	2 Years 10 Months 20 Days
Modified Duration	2 Years 3 Months
Sub Cat.	Credit Risk

Growth of 10,000 investment over the years.

Date	Value
31 Mar 20	₹10,000
31 Mar 21	₹10,740
31 Mar 22	₹11,352
31 Mar 23	₹11,875
31 Mar 24	₹12,743
31 Mar 25	₹13,781

Axis Credit Risk Fund SIP 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 17 Apr 25

Duration	Returns
1 Month	1.6%
3 Month	2.7%
6 Month	4.4%
1 Year	8.9%
3 Year	7.1%
5 Year	6.8%
10 Year
15 Year
Since launch	7.2%

Historical performance (Yearly) on absolute basis

Year	Returns
2023	8%
2022	7%
2021	4%
2020	6%
2019	8.2%
2018	4.4%
2017	5.9%
2016	6.4%
2015	9.8%
2014	8.7%

Fund Manager information for Axis Credit Risk Fund

Name	Since	Tenure
Devang Shah	15 Jul 14	10.64 Yr.
Akhil Thakker	9 Nov 21	3.31 Yr.

Data below for Axis Credit Risk Fund as on 28 Feb 25

Asset Allocation

Asset Class	Value
Cash	5.84%
Equity	0.94%
Debt	92.77%
Other	0.45%

Debt Sector Allocation

Sector	Value
Corporate	76.1%
Government	16.67%
Cash Equivalent	5.84%

Credit Quality

Rating	Value
A	16.35%
AA	56.44%
AAA	27.2%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
7.18% Govt Stock 2033 Sovereign Bonds \| -	6%	₹23 Cr	2,200,000
Kohima Mariani Transmission Limited Debentures \| -	5%	₹20 Cr	2,000
Tata Projects Limited Debentures \| -	5%	₹19 Cr	1,900
7.1% Govt Stock 2034 Sovereign Bonds \| -	4%	₹16 Cr	1,600,000
Birla Corporation Limited Debentures \| -	4%	₹16 Cr	230
Infopark Properties Ltd. Debentures \| -	4%	₹15 Cr	1,500
Nirma Limited Debentures \| -	4%	₹15 Cr	1,500
Aditya Birla Renewables Limited Debentures \| -	4%	₹15 Cr	1,500
Delhi International Airport Limited Debentures \| -	4%	₹15 Cr	150
Shriram Housing Finance Limited Debentures \| -	4%	₹15 Cr	1,500

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.

Axis Strategic Bond Fund is a Debt - Medium term Bond fund was launched on 28 Mar 12. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8.1% since its launch. Ranked 7 in Medium term Bond category. Return for 2024 was 8.7% , 2023 was 7.3% and 2022 was 3.8% .

Below is the key information for Axis Strategic Bond Fund

Axis Strategic Bond Fund Growth
Launch Date	28 Mar 12
NAV (17 Apr 25)	₹27.6601 ↑ 0.03 (0.09 %)
Net Assets (Cr)	₹1,987 on 28 Feb 25
Category	Debt - Medium term Bond
AMC	Axis Asset Management Company Limited
Rating	☆☆☆☆
Risk	Moderate
Expense Ratio	1.06
Sharpe Ratio	1.41
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	8.05%
Effective Maturity	5 Years
Modified Duration	3 Years 6 Months 11 Days
Sub Cat.	Medium term Bond

Growth of 10,000 investment over the years.

Date	Value
31 Mar 20	₹10,000
31 Mar 21	₹10,801
31 Mar 22	₹11,410
31 Mar 23	₹11,926
31 Mar 24	₹12,870
31 Mar 25	₹13,992

Axis Strategic Bond Fund SIP Returns

Total investment amount is ₹180,000
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125 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 17 Apr 25

Duration	Returns
1 Month	2%
3 Month	3.3%
6 Month	4.9%
1 Year	9.9%
3 Year	7.7%
5 Year	7.2%
10 Year
15 Year
Since launch	8.1%

Historical performance (Yearly) on absolute basis

Year	Returns
2023	8.7%
2022	7.3%
2021	3.8%
2020	5.2%
2019	10.5%
2018	7.1%
2017	6.7%
2016	7.5%
2015	11.6%
2014	6.8%

Fund Manager information for Axis Strategic Bond Fund

Name	Since	Tenure
Devang Shah	5 Nov 12	12.41 Yr.
Sachin Jain	1 Feb 23	2.16 Yr.
Akhil Thakker	1 Feb 23	2.16 Yr.

Data below for Axis Strategic Bond Fund as on 28 Feb 25

Asset Allocation

Asset Class	Value
Cash	4.99%
Equity	0.39%
Debt	94.34%
Other	0.28%

Debt Sector Allocation

Sector	Value
Corporate	55.97%
Government	38.37%
Cash Equivalent	4.99%

Credit Quality

Rating	Value
A	10.23%
AA	38.82%
AAA	50.94%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
7.1% Govt Stock 2034 Sovereign Bonds \| -	15%	₹298 Cr	29,100,000 ↓ -500,000
7.18% Govt Stock 2033 Sovereign Bonds \| -	5%	₹93 Cr	9,100,000 ↓ -12,700,000
Nirma Limited Debentures \| -	3%	₹60 Cr	6,000
Vedanta Limited Debentures \| -	3%	₹60 Cr	6,000
Nuvama Wealth Finance Limited 9.75% Debentures \| -	3%	₹58 Cr	5,800
DLF Cyber City Developers Ltd. 8.4% Debentures \| -	3%	₹55 Cr	5,500
Aadhar Housing Finance Ltd. 8.65% Debentures \| -	3%	₹52 Cr	5,200
Mahanagar Telephone Nigam Limited Debentures \| -	3%	₹50 Cr	5,000
Aptus Finance India Pvt Ltd. 8.95% Debentures \| -	3%	₹49 Cr	5,000 ↑ 5,000
Tata Projects Limited Debentures \| -	2%	₹46 Cr	4,600

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.

Axis Liquid Fund is a Debt - Liquid Fund fund was launched on 9 Oct 09. It is a fund with Low risk and has given a CAGR/Annualized return of 7% since its launch. Ranked 21 in Liquid Fund category. Return for 2024 was 7.4% , 2023 was 7.1% and 2022 was 4.9% .

Below is the key information for Axis Liquid Fund

Axis Liquid Fund Growth
Launch Date	9 Oct 09
NAV (20 Apr 25)	₹2,872.2 ↑ 0.96 (0.03 %)
Net Assets (Cr)	₹42,867 on 28 Feb 25
Category	Debt - Liquid Fund
AMC	Axis Asset Management Company Limited
Rating	☆☆☆☆
Risk	Low
Expense Ratio	0.23
Sharpe Ratio	3.92
Information Ratio	0
Alpha Ratio	0
Min Investment	500
Min SIP Investment	1,000
Exit Load	NIL
Yield to Maturity	7.17%
Effective Maturity	1 Month 9 Days
Modified Duration	1 Month 9 Days
Sub Cat.	Liquid Fund

Growth of 10,000 investment over the years.

Date	Value
31 Mar 20	₹10,000
31 Mar 21	₹10,358
31 Mar 22	₹10,710
31 Mar 23	₹11,322
31 Mar 24	₹12,142
31 Mar 25	₹13,034

Axis Liquid Fund SIP Returns

Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169 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 17 Apr 25

Duration	Returns
1 Month	0.8%
3 Month	1.9%
6 Month	3.7%
1 Year	7.3%
3 Year	6.8%
5 Year	5.5%
10 Year
15 Year
Since launch	7%

Historical performance (Yearly) on absolute basis

Year	Returns
2023	7.4%
2022	7.1%
2021	4.9%
2020	3.3%
2019	4.3%
2018	6.6%
2017	7.5%
2016	6.7%
2015	7.6%
2014	8.4%

Fund Manager information for Axis Liquid Fund

Name	Since	Tenure
Devang Shah	5 Nov 12	12.41 Yr.
Aditya Pagaria	13 Aug 16	8.64 Yr.
Sachin Jain	3 Jul 23	1.75 Yr.

Data below for Axis Liquid Fund as on 28 Feb 25

Asset Allocation

Asset Class	Value
Cash	99.82%
Other	0.18%

Debt Sector Allocation

Sector	Value
Cash Equivalent	73.61%
Corporate	16.99%
Government	9.21%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
India (Republic of) - \| -	5%	₹2,218 Cr	225,000,000 ↑ 225,000,000
91 Days Tbill Sovereign Bonds \| -	4%	₹1,770 Cr	178,500,000
Canara Bank Domestic Bonds \| -	3%	₹1,474 Cr	30,000 ↑ 30,000
Export-Import Bank of India Commercial Paper \| -	3%	₹1,449 Cr	29,500 ↑ 29,500
India (Republic of) - \| -	3%	₹1,280 Cr	130,000,000 ↑ 130,000,000
National Bank for Agriculture and Rural Development Commercial Paper \| -	3%	₹1,213 Cr	24,700 ↑ 24,700
91 DTB 28032025 Sovereign Bonds \| -	3%	₹1,198 Cr	120,000,000
Reliance Retail Ventures Limited Commercial Paper \| -	2%	₹1,011 Cr	20,500 ↓ -500
HDFC Bank Ltd. Debentures \| -	2%	₹983 Cr	20,000 ↑ 20,000
Bank Of Baroda Certificate of Deposit \| -	2%	₹983 Cr	20,000 ↑ 20,000

4. Axis Dynamic Bond Fund

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

Axis Dynamic Bond Fund is a Debt - Dynamic Bond fund was launched on 27 Apr 11. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8% since its launch. Ranked 22 in Dynamic Bond category. Return for 2024 was 8.6% , 2023 was 6.6% and 2022 was 2.1% .

Below is the key information for Axis Dynamic Bond Fund

Axis Dynamic Bond Fund Growth
Launch Date	27 Apr 11
NAV (17 Apr 25)	₹29.4527 ↑ 0.03 (0.10 %)
Net Assets (Cr)	₹1,360 on 28 Feb 25
Category	Debt - Dynamic Bond
AMC	Axis Asset Management Company Limited
Rating	☆☆☆
Risk	Moderate
Expense Ratio	0.57
Sharpe Ratio	0.12
Information Ratio	0
Alpha Ratio	0
Min Investment	5,000
Min SIP Investment	1,000
Exit Load	NIL
Yield to Maturity	7.13%
Effective Maturity	18 Years 7 Months 20 Days
Modified Duration	7 Years 11 Months 19 Days
Sub Cat.	Dynamic Bond

Growth of 10,000 investment over the years.

Date	Value
31 Mar 20	₹10,000
31 Mar 21	₹10,766
31 Mar 22	₹11,271
31 Mar 23	₹11,643
31 Mar 24	₹12,537
31 Mar 25	₹13,636

Axis Dynamic Bond Fund SIP 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 17 Apr 25

Duration	Returns
1 Month	2.8%
3 Month	4.2%
6 Month	5%
1 Year	10.3%
3 Year	7.6%
5 Year	6.8%
10 Year
15 Year
Since launch	8%

Historical performance (Yearly) on absolute basis

Year	Returns
2023	8.6%
2022	6.6%
2021	2.1%
2020	3.9%
2019	12.3%
2018	11%
2017	6.2%
2016	3.4%
2015	13.4%
2014	6.7%

Fund Manager information for Axis Dynamic Bond Fund

Name	Since	Tenure
Devang Shah	5 Nov 12	12.41 Yr.
Hardik Shah	5 Apr 24	0.99 Yr.

Data below for Axis Dynamic Bond Fund as on 28 Feb 25

Asset Allocation

Asset Class	Value
Cash	3.17%
Debt	96.48%
Other	0.36%

Debt Sector Allocation

Sector	Value
Government	83.71%
Corporate	12.77%
Cash Equivalent	3.17%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
7.34% Govt Stock 2064 Sovereign Bonds \| -	26%	₹353 Cr	34,000,000 ↓ -2,500,000
7.1% Govt Stock 2034 Sovereign Bonds \| -	13%	₹169 Cr	16,500,000
7.18% Govt Stock 2033 Sovereign Bonds \| -	7%	₹92 Cr	9,000,000 ↓ -8,000,000
7.3% Govt Stock 2053 Sovereign Bonds \| -	6%	₹78 Cr	7,500,000 ↓ -5,000,000
State Bank Of India Debentures \| -	4%	₹50 Cr	520
7.18% Tamilnadu State Development Loans (27/08/2036) Sovereign Bonds \| -	4%	₹50 Cr	5,000,000
7.14% Maharashtra SDL 2039 Sovereign Bonds \| -	4%	₹50 Cr	5,000,000 ↑ 5,000,000
Maharashtra (Government of) 7.13% - \| -	4%	₹50 Cr	5,000,000 ↑ 5,000,000
7.12% Maharashtra SDL 2038 Sovereign Bonds \| -	3%	₹45 Cr	4,500,000 ↑ 4,500,000
Power Grid Corporation Of India Limited Debentures \| -	3%	₹42 Cr	5,000

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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.