Axis Credit Risk Fund-Reg(G)

Scheme Introduction:

Axis Credit Risk Fund-Reg(G) is an open-ended Credit Risk fund designed for investors who are willing to take higher Credit Risks in return for the possibility of higher yield (and higher return potential). Credit risk funds need to invest 65% of the total assets in below highest rated instruments, which can enhance accrual income, but it also increases the chance of volatility if credit spreads widen or if any issuer faces stress.

 

As of 1 Feb 2026, Axis Credit Risk Fund-Reg(G) manages 367 in assets, has a Yield to Maturity (YTM) of 8, and a Modified Duration of 1095.

 

In simple terms: YTM indicates the portfolio’s current income potential, while modified duration shows how sensitive the fund is to interest-rate changes (lower is typically more stable for short-term parking). In credit risk funds, investors should also pay close attention to the credit quality mix, because credit events can impact NAV more than small duration changes.

Investment Objective:

The investment objective of Axis Credit Risk Fund-Reg(G) is to generate reasonable returns by investing in a portfolio of corporate bonds and other debt instruments, with a strategy that can take higher credit exposure, in line with Credit Risk fund norms. Investors can typically invest and redeem on business days (subject to scheme cut-off timings and applicable exit load)

 

The current NAV of the scheme is ₹22.47 as on 24 Mar 2026, and the risk level is High.

Key Scheme Metrics:

Axis Credit Risk Fund-Reg(G) was launched on 15 Jul 2014 and is benchmarked against CRISIL Credit Risk Debt Index. The scheme is managed by Devang Shah who has been managing the fund since 25 Jun 2014 and the fund is also managed by Akhil Thakker. The exit load of the fund is NIL for 10% of investments and 1% for remaining investments on or before 1M, NIL after 1M.

Asset Type Allocation:

Axis Credit Risk Fund-Reg(G) invests across short-term instruments to balance liquidity and yield. As of 28 Feb 2026, the portfolio is allocated to Corporate Debt (74%), Government Securities (15%), PTC & Securitized Debt (3%).

 

A quick way to read this: higher corporate bond exposure typically aims to enhance yield, but the key is to check credit quality, issuer concentration, and how diversified the portfolio is.

Rating Allocation:

Credit quality matters the even in Credit Risk. The fund’s portfolio is allocated 40% to AA, 15% to SOV, 12% to A+, 11% to AA-, 6% to AAA, 3% to AA+, 3% to AAA(SO), 3% to A+(CE).

 

In plain language: higher exposure to lower-rated instruments can improve yield, but it also increases credit-event risk. For credit risk funds, even small changes in credit profile can matter more than small differences in returns.

Top 5 holdings:

The top 5 holdings of the fund are 7.72% Bihar State Development Loans (5.5%), Jubilant Bevco Limited (ZCB) (4.4%), JTPM Metal Traders Limited (ZCB) (4.3%), 8.60% Aditya Birla Renewables Limited (4.1%), 8.6% Infopark Properties Limited (4.1%)

 

In Credit Risk funds, large holdings are commonly high-rated Credit Risks/NCDs, along with select short-term instruments or sovereign exposure, chosen mainly for credit comfort, liquidity management, and portfolio stability.

Top Sector Allocation:

Sector	Allocation (%)
"Finance	25%
Unspecified	18%
G-Sec	15%
Construction	9%
Airport Management Services	9%

 

In credit risk funds, it is especially important to track whether holdings are concentrated in a few issuers and whether the portfolio is diversified across sectors.

Performance:

Axis Credit Risk Fund-Reg(G)’s recent annualized returns are 7.9% (1 Year), 7.7% (3 Years) and 6.7% (5 years). Over 1 year, it has delivered 7.9% annualized returns. These returns are as of 25 Mar 2026

 

Against the full Credit Risk fund peer set, the scheme is ranked 6/15 over 1 year, 8/14 over 3 years, 11/14 over 5 years period.

 

One simple way to interpret rankings: Credit Risk funds can show meaningful differences across peers because maturity profile and interest-rate positioning can vary from fund to fund, so peer ranking is generally more useful.

How much money would you have made:

If you had invested ₹1,00,000 in Axis Credit Risk Fund-Reg(G) then you would have got:

SIP Invested ₹1,00,000

Duration	Annualized Returns (%)	Current Total Value	Current Total Profit
1 Year	7.9%	₹107900.00	₹7900.00
3 Year	7.7%	₹107700.00	₹7700.00
5 Year	6.7%	₹106700.00	₹6700.00

Note: These are historical returns and they may not repeat in the future.

Also note for very short holding periods, exit load can impact realized returns. Always check exit load before investing in any fund. Data updated as of 25 Mar 2026

Debt quants:

The Potential Risk Class (PRC) matrix of Axis Credit Risk Fund-Reg(G) is C-III which means that the fund has Relatively high interest rate risk and relatively high credit risk.

Who should invest in Credit Risk Funds?

It may suit investors who want to:

• Invest for a medium to long-term horizon (for example, 3–5+ years)
• Are comfortable taking higher credit risk for potentially higher accrual income
• Understand that NAV can be more volatile due to credit events or widening spread
• Prefer this as a satellite allocation, not the core “safe debt” portion of the portfolio.

Benefits of investing in Credit Risk Funds:

It offers a few practical benefits: professional credit selection, access to a higher-yielding bond universe, easy entry/exit (subject to cut-offs and exit load, if any), and potential to earn higher accrual returns versus high-quality debt categories. However, investors should remember that higher yield comes with higher credit risk.

Things to consider before investing in Credit Risk Funds:

Credit risk funds are not risk-free and can be among the more volatile categories within debt. Key things to watch are credit quality mix (below AA+ exposure), issuer concentration, liquidity of holdings, changes in YTM and duration, and whether the scheme matches your risk tolerance and time horizon. Unlike high-quality categories, credit risk funds can face sharper NAV impacts if any issuer is downgraded or defaults, so they are generally better suited for investors with a longer horizon and higher risk tolerance.

Taxation of Credit Risk Funds:

For Credit Risk funds, taxation depends heavily on when you bought your units. Units acquired on or after 1 April 2023 are generally taxed as short-term capital gains at your slab rate and there are no long-term capital gain and loss benefits.

 

For units acquired before 1 April 2023, taxation follows the older capital-gains framework based on holding period and the date of sale.

 

Note that regulatory/tax updates over time can change how long-term treatment works.

Conclusion

Axis Credit Risk Fund-Reg(G) is positioned as a higher-yield debt option that aims to deliver reasonable returns through a portfolio that can take higher credit exposure.

 

A simple way to track whether it is doing its job is to follow three live indicators: credit quality, peer ranking consistency, and monthly movement in YTM and modified duration. Among these, credit quality should always come first because protecting capital matters more than chasing marginally higher returns; focus on the rating mix (AAA/AA+/sovereign exposure), issuer concentration, and any meaningful shifts in the credit profile, and use returns/ranks mainly as a supporting check