January - March 2021 - Axis Bank
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January – March 2021
MARKET OVERVIEW
A year of transition, a year of pain, a year of disruption & a year of recovery. 2020 can be
characterized as one year where markets changed fortunes, from a grim March to a euphoric
November, it’s been a rollercoaster ride.
Equity Markets have staged a major recovery across the world. Indian equity market has
rallied a whopping 84% to 13,982 from the March lows. The concentrated rally of top 15 stocks
contributing 74% of the returns is now broad-basing with small & mid-cap stocks starting to
outperform their larger counterparts. Market is expensive because of the top 10 stocks rally,
but beyond the top 10 the market valuations are reasonable although not cheap.
Channel checks indicate that revival in business is very strong across the board. Waiting
period in auto sector continues. Demand has surged in all the sectors including real estate
which is seeing a strong revival in demand and home registrations in key metros has gone up
significantly. IT sector continues to see very strong traction and could see further re-rating.
Commodity prices have continued to surge with copper and ferrous metals performing very
strongly. Q3FY21 results for the BFSI sector are likely to come in strong.
Going ahead, market volatility may continue across domestic and global markets. Current
market rally is driven by six key factors 1) advent of upward revisions in growth and earnings
cycle after a long time, 2) prospects of liquidity in system remaining comfortable, 3) improved
global trade scenario after the change of guard in the US, resulting in a more organized US-
China negotiation and resurrection of multilateralism, 4) reduced global policy uncertainty, 5)
positive developments on COVID-19 vaccine and 6) the lagged impact of monetary and fiscal
stimulus across the world and India.
We maintain a positive bias towards India equity. Investors can consider investing in
equities with a 3 to 5 year investment perspective
• India’s debt market landscape is marked by multiple policy concerns with RBI trying to play
a balancing act between yields, inflation and forex markets. 10 year benchmark yield traded
below the 6% mark during the quarter, closing at 5.89%, lower by 12 bps. It traded mostly in
a tight range, with yields oscillating in a range of 15 bps between 5.85% to 6.0%.
• Domestic bond yields have followed the downward rate trajectory since the beginning of the
year, as the RBI & the government have emphasized on bringing rates lower through policy
action & accommodative monetary policy in an attempt to spur growth. While the money
market curve & the 3/5-year space has broadly followed suit, longer dated papers especially
corporate bonds have remained anchored. This has resulted in a steep yield curve.
• Across the globe, rates were also down sharply in early part of the year and remained low
as major central banks continued to provide support with monetary and fiscal stimulus to
pandemic struck economies and eyeing for a comprehensive return to a sustainable growth
path post a global GDP contraction due to lockdowns.
• The RBI is likely to ensure surplus liquidity in the banking system to support growth with a
dual objective of improving financial conditions and managing the yield curve. RBI may later
in the year, withdraw its accommodative stance and reduce liquidity, in turn, starting the
process of rate normalization. Going forward, a rate cut looks unlikely unless a huge fiscal
consolidation or growth fallout or an inflation shock emerges. Rates are expected to remain
benign for some more time; however, volatility might continue.
We remain constructive on the shorter end of the yield curve. Short Duration funds,
Corporate Bond funds, Banking & PSU Debt funds, Money Market funds, Low Duration
funds and Ultra Short Duration funds can be considered by investors with an investment
horizon commensurate with the maturity and duration of the schemes, due to their steady
accrual profile and possible capital appreciation in case of a fall in yields. Having said this,
one should consider aspects such as exit load, capital gains tax and asset allocation
amongst others while evaluating their investment options.
EQUITY MARKET RECAP
Indian equity markets ended the December 2020 quarter at all time high level.
Markets have rallied for three consecutive quarters after witnessing a sell-off in
March 2020. Mid Cap and Small Cap indices were marginally lower compared to
their Large Cap counterparts. The S&P BSE Sensex was up by 25.44% during
the quarter ended December 2020, while the S&P BSE Mid Cap and the S&P
BSE Small Cap index were up by 22.01% and 21.73%, respectively.
For CY20, S&P BSE Sensex was up by 15.75%, whereas S&P BSE Midcap and
S&P BSE Small Cap index was up by 19.87% and 32.11%, respectively.
On the sectoral front, all sectors ended in green for the quarter ended December
2020. Realty (+48.26%), Bankex (+47.36%) and Metal (+39.68%) were the top
performers. However, the bottom 3 sectors were Oil & Gas (+15.09%), FMCG
(+14.10%) & Healthcare (+9.51%).
For CY20, majority of the sectors were in positive territory. Healthcare (+61.45%),
IT (+56.68%) and Consumer Durables (+21.52%) were the top gainers, while
Bankex (-2.14%), Oil & Gas (-4.44%) and PSU (-16.88%) were at the bottom.
Among S&P BSE Sensex stocks for the quarter ended December 2020, Indusind
Bank (+69.90%), Bajaj Finance (+61.60%) and Kotak Mahindra Bank (+57.35%)
were the top performers, while Reliance Industries (-11.15%) was a laggard.
For CY20, Dr. Reddys Labs (+80.88%), Infosys (+71.62%) and HCL technologies
(+66.47%) were the top performers, while Axis Bank (-17.73%), ONGC (-27.61%)
and Indusind Bank (-40.76%) were laggards.
During the quarter ended December 2020, FIIs were net buyers of equity to the
tune of Rs 1,28,078 Cr while DIIs were net sellers to the tune of Rs 1,02,931 Cr
& the domestic MFs sold Rs 64,595 (as of Dec 17, 2020) Cr worth of equity.
For CY20, FIIs were net buyers of equity to the tune of Rs 65,246 Cr while DIIs
were net sellers to the tune of Rs 35,663 Cr and the domestic MFs sold Rs
52,692 Cr worth of equity.
EQUITY MARKET OUTLOOK
CY20 has been a remarkable year for the global equity markets. The unprecedented year
saw Covid-19 induced turbulence across the globe and the markets crashed by 35-40%.
There was a staggering fall in the Gross Domestic Product (GDP) growth due to total
suspension of economic activity in the first quarter of the FY21 due to the series of
lockdowns to stem the spread of the virus. But then, the stock markets recovered
and ended 2020 at record highs. The sentiments had swung firmly, from extreme despair
in March to optimism now and valuations have also re-rated alongside as the economy
saw signs of recovery. The equity market’s staggering performance was primarily led by
large fiscal policy interventions, low interest rate regime, massive amounts of liquidity and
rapid development of multiple Covid-19 vaccines.
In the month of December 2020, Indian equity market has rallied a whopping ~84% from
the March lows to end the month at 13981.75. The concentrated rally of the top 15 stocks
contributing ~74% of the returns is now broad-basing with small and mid cap stocks
starting to outperform the large cap stocks. Nifty 50 was up by 7.81% during the month of
December 2020. Midcaps (Nifty Midcap 150) was up by 5.46% and small caps (Nifty
Small cap 250) was also up by 8.42%. The market is optically expensive because of the
top 10 stocks rally but beyond the top 10 names, the market is fairly valued; however, it is
not cheap. The top 10 stocks are trading at 27x while the remaining 40 stocks are trading
at 20x on 12m forward PE, while the NIFTY is trading at 22.2x on 1 year forward
earnings.
The demand has surged across all the sectors including real estate which is now
witnessing a strong revival in demand and home registrations in key metro cities has gone
up significantly. Channel checks indicate that revival in the business is very strong across
the board and strong auto sales and the waiting period in the auto sector continues. IT
sector continues to see very strong traction, Accenture reported very strong deal wins
which indicates that the deal wins for the IT sector will be very strong for the Indian
companies also. IT sector could see further re-rating. While IT sector continues to see
very strong tail winds, the news for domestic pharmaceuticals has been a mixed bag.
India growth in the Pharma sector is not very strong in November but overall trends for the
sector continue to indicate revival. Commodity prices have continued to surge with copper
and ferrous metals performing very strongly. Q3FY21 results for the BFSI sector are likely
to come in strong as banks shifts focus to growth as they are flushed with liquidity.
The developments in COVID-19 vaccine hold a positive angle as several vaccines have
already been approved for emergency use in China, Russia, United States and Germany.
Recent news of the rising incidence of H69/V70 variant in positive COVID-19 test cases in
the UK triggered renewed concerns on stringent responses across several countries.
However, the concerns were short-lived, suggesting that the markets are likely to be less
responsive even in future as the virus morphs into newer strains. Positive news on the
vaccine, faster than expected economic recovery, continuing fiscal and monetary policy
support, and high liquidity should provide a supportive backdrop for equities.
EQUITY MARKET OUTLOOK
Globally also, the markets witnessed support on hopes of a post- Brexit trade deal after
nearly nine months of hard negotiations and the US Government closing in on a $900 Bn
Covid aid bill covering several stimulus checks to the US citizens. Japan too announced
another stimulus package of $708Bn. Therefore with major economies pumping in
billions of dollars into the economy, it can be reasonably concluded that the buoyancy in
the stock markets is here to stay. Vulnerability to risk markets can arise from surprise
hardening in US inflation and withdrawal of liquidity. However, we believe Fed (and
others) will maintain the “lower-for-longer” stance and the eventual lift-off will be mild.
Survey of central banks’ statements suggest that liquidity infusion will continue for a
prolonged period.
Sowing of rabi (winter) crops is under way. The rabi sowing begins from October
immediately after the harvest of kharif (summer) crops. According to the data released by
the Agriculture Ministry, the total area covered in the current rabi season is nearly 621 lakh
hectares (lha), nearly 18 lha more than 603 lha covered in the same week in 2019-20.
Government continues to procure Kharif crops at MSP from farmers as per existing
Minimum Support Price schemes. Over 487.92 lakh metric tonne of paddy has been
procured so far, which is 24.93 percent more than the corresponding period last year.
Going ahead, we expect market volatility to continue across domestic and global markets.
At current juncture six key factors supporting the market are: (1) advent of upward
revisions in growth and earnings cycle after a long time, (2) prospects of liquidity in the
system remaining comfortable, (3) improved global trade scenario after the change of
guard in the US, resulting in a more organized US-China negotiation and resurrection of
multilateralism, (4) reduced global policy uncertainty, 5) positive developments on COVID-
19 vaccine and 6) the lagged impact of monetary and fiscal stimulus across the world,
India included.
Investors can look at accumulating equities with a 3 to 5 year investment
perspective
LARGE CAP EQUITY FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
Axis Bluechip Fund 19.66 19.12 14.75
ICICI Prudential Bluechip Fund 13.45 11.6 7.29
Mirae Asset Large Cap Fund 13.66 13.19 8.37
Nippon India Large Cap Fund 4.89 6.06 3.93
UTI Mastershare Unit Scheme 18.62 14.59 9.35
Category Average 13.16 12.23 7.52
Nifty 50 TRI 16.09 14.78 11.28
Data Source: ICRA MFI Explorer
MULTI CAP EQUITY FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
Aditya Birla Sun Life Equity Fund 16.02 12.22 6.49
Axis Multicap Fund 19.24 18.21 14.36
ICICI Prudential Multicap Fund 9.18 7.58 5.05
Kotak Standard Multicap Fund 11.75 12.02 7.53
SBI Magnum Multi Cap Fund 13.56 12.26 5.99
Tata Multicap Fund 14.27 12.38 --
UTI Equity Fund 31.45 21.20 14.97
Category Average 13.90 11.47 6.11
Nifty 500 TRI 18.36 13.58 8.19
Data Source: ICRA MFI Explorer
LARGE & MID CAP EQUITY FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
Axis Growth Opportunities Fund 24.63 20.44 --
DSP Equity Opportunities Fund 14.20 12.82 4.92
Invesco India Growth Opportunities Fund 13.24 11.96 7.73
Kotak Equity Opportunities Fund 16.41 14.78 7.52
L&T Large and Midcap Fund 14.64 10.41 2.63
Mirae Asset Emerging Bluechip Fund 22.33 18.47 9.89
Category Average 15.18 11.86 4.76
NIFTY Large Midcap 250 TRI 19.61 12.02 5.58
Data Source: ICRA MFI Explorer
FOCUSED EQUITY FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
Aditya Birla Sun Life Focused Equity Fund 15.94 13.57 7.33
Axis Focused 25 Fund 20.95 17.76 11.74
DSP Focus Fund 8.93 13.38 6.67
Kotak Focused Equity Fund 12.75 -- --
L&T Focused Equity Fund 13.40 13.11 --
SBI Focused Equity Fund 14.50 15.28 8.52
Tata Focused Equity Fund 11.71 -- --
Category Average 14.61 12.31 5.33
Nifty 50 TRI 16.09 14.78 11.28
Data Source: ICRA MFI ExplorerMID CAP EQUITY FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
Axis Midcap Fund 25.93 18.41 13.20
DSP Midcap Fund 23.57 16.18 6.64
Franklin India Prima Fund 17.73 10.41 3.37
Invesco India Mid Cap Fund 24.30 13.61 6.92
Kotak Emerging Equity Fund 21.82 15.17 5.40
L&T Midcap Fund 18.99 9.01 1.50
Mirae Asset Midcap Fund 24.20 -- --
Category Average 22.99 12.76 4.27
S&P BSE Mid Cap TRI 21.25 8.99 1.29
Data Source: ICRA MFI Explorer
SMALL CAP EQUITY FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
Axis Small Cap Fund 22.30 20.83 9.95
HDFC Small Cap Fund 20.11 4.28 -0.01
ICICI Prudential Smallcap Fund 22.69 16.20 1.60
Kotak Small Cap Fund 34.10 18.71 5.23
SBI Small Cap Fund 33.51 19.04 4.44
UTI Small Cap Fund -- -- --
Category
Data Average
Source: ICRA MFI Explorer 26.72 11.52 0.05
S&P BSE Small Cap TRI 33.42 12.10 -1.05
Data Source: ICRA MFI ExplorerEQUITY LINKED SAVINGS SCHEME (ELSS)
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
Aditya Birla Sun Life Tax Relief 96 15.16 9.59 4.66
Axis Long Term Equity Fund 20.46 17.62 12.39
DSP Tax Saver Fund 15.00 14.92 6.84
Kotak Tax Saver Fund 14.90 13.78 7.58
L&T Tax Advantage Fund 13.41 8.95 2.95
Mirae Asset Tax Saver Fund 21.48 17.72 10.62
Category Average 14.16 11.25 5.23
Nifty 500 TRI 18.36 13.58 8.19
Data Source: ICRA MFI Explorer
VALUE EQUITY FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
HDFC Capital Builder Value Fund 12.90 6.26 2.20
Invesco India Contra Fund 21.11 13.28 7.47
Tata Equity P/E Fund 12.47 8.83 3.25
UTI Value Opportunities Fund 18.96 14.61 8.60
Category Average 17.24 9.31 2.94
Nifty 500 TRI 18.36 13.58 8.19
Data Source: ICRA MFI ExplorerAGGRESSIVE HYBRID FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
Axis Equity Hybrid Fund 15.02 14.58 --
HDFC Hybrid Equity Fund 13.34 10.4 2.53
ICICI Prudential Equity & Debt Fund 8.92 9.13 5.31
L&T Hybrid Equity Fund 13.53 9.96 5.15
Mirae Asset Hybrid - Equity Fund 13.61 12.77 8.79
SBI Equity Hybrid Fund 12.86 13.17 8.57
Category Average 11.67 10.31 5.14
NIFTY 50 Hybrid Composite Debt 65:35 Index 16.88 14.77 11.52
Data Source: ICRA MFI Explorer
DYNAMIC ASSET ALLOCATION /
BALANCED ADVANTAGE FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
Axis Dynamic Equity Fund 10.03 7.94 6.15
DSP Dynamic Asset Allocation Fund 12.89 10.83 8.35
ICICI Prudential Balanced Advantage Fund 11.68 11.23 8.21
Kotak Balanced Advantage Fund 13.60 12.87 --
L&T Balanced Advantage Fund 12.76 10.44 8.03
Nippon India Balanced Advantage Fund 11.13 9.69 6.51
Tata Balanced Advantage Fund 15.49 -- --
Category Average 11.77 9.58 6.70
NIFTY 50 Hybrid Composite Debt 65:35 Index 16.88 14.77 11.52
Data Source: ICRA MFI ExplorerEQUITY SAVINGS FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
Aditya Birla Sun Life Equity Savings
10.95 9.39 5.54
Fund
Axis Equity Saver Fund 11.57 9.93 8.3
HDFC Equity Savings Fund 8.77 7.29 5.12
ICICI Prudential Equity Savings Fund 4.82 7.55 6.15
Kotak Equity Savings Fund 10.36 9.05 7.4
UTI Equity Savings Fund 10.11 7.18 --
Category Average 8.35 6.99 4.50
1/3rd %age each of CRISIL Short Term
Bond Fund Index + Nifty 50 TRI + Nifty 9.61 9.74 8.19
50 Arbitrage Index
Data Source: ICRA MFI Explorer
MULTI ASSET ALLOCATION FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
Axis Triple Advantage Fund 17.96 16.62 11.46
ICICI Prudential Multi-Asset Fund 9.91 8.81 5.01
Nippon India Multi Asset Fund -- -- --
Tata Multi Asset Opportunities Fund -- -- --
Category Average 15.19 12.23 7.81
Data Source: ICRA MFI ExplorerTHEMATIC FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
Tata Ethical Fund 26.15 13.98 6.91
Nifty 500 Shariah TRI 35.91 18.16 8.90
CAGR 1 Year 2 Years 3 Years
Aditya Birla Sun Life ESG Fund -- -- --
Axis ESG Equity Fund -- -- --
Axis Special Situations Fund -- -- --
ICICI Prudential Bharat Consumption
10.58 -- --
Fund
ICICI Prudential ESG Fund -- -- --
ICICI Prudential India Opportunities Fund 7.28 -- --
Kotak ESG Opportunities Fund -- -- --
Nifty 500 TRI 18.36 13.58 8.19
Data Source: ICRA MFI Explorer
ARBITRAGE FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
Aditya Birla Sun Life Arbitrage Fund 4.11 5.13 5.42
Axis Arbitrage Fund 4.12 4.98 5.35
IDFC Arbitrage Fund 3.81 4.97 5.39
Kotak Equity Arbitrage Fund 4.32 5.19 5.55
Nippon India Arbitrage Fund 4.30 5.22 5.73
SBI Arbitrage Opportunities Fund 3.50 4.76 5.24
Category Average 4.15 5.13 5.42
Nifty 50 Arbitrage Index 2.36 4.47 4.46
Data Source: ICRA MFI ExplorerDEBT AND MACRO ECONOMIC OUTLOOK
Nov CPI inflation prints lower at 6.93% on moderation in food prices, while
WPI inflation ticks higher on manufactured products
CPI inflation remained above 6% for the 8th consecutive month, but eased to 6.93% vs
7.23% expected and 7.61% previous, with slowing food inflation, primarily brought
lower by monthly decline across all vegetable prices except for potatoes and onions.
These were partly offset by increase in protein rich segments including eggs, milk and
pulses. Core inflation ticked higher to 5.51% vs 5.46% previous due to rise in
miscellaneous segment (on households goods, health, education and services)
WPI inflation came in at 1.55% YoY vs 1.48% previous, with pickup in manufactured
products inflation (on basic metals, chemicals and textiles). This was partly offset by
slower inflation in primary articles.
IIP records fastest expansion since Feb on low Diwali base, following gains
in manufacturing and electricity
Numbers beat expectations on consumer durables and non-durables, helped by strong
manufacturing gains in PV, 2-wheeler, and pharma. Besides these, capital and
infrastructure/construction goods also recorded upbeat growth on machinery
equipment, fabricated metals, electrical equipment and other non-metallic minerals,
with cement expanding for the first time since pandemic.
However, the better reading is partly also on the low Diwali base last year, implying
further data needs to be watched before being confident on recovery trends.
Nov trade deficit widest since Jan 2020 as economy normalises, thought
not in recovery phase yet
Merchandise trade deficit widened to USD 9.96 bn vs 8.71 bn prev, following
weakness in core exports ( on engineering goods, textiles, and pharma) alongside
recovery in petroleum goods and precious items. However, core imports were down on
machinery, and electronics-indicating normalization may have peaked.
Slowdown of both exports and imports coupled with weaker imports of both capital and
consumption goods over the month is in line with other leading indicators showing loss
of momentum, some pause before true recovery commences.
Mixed global macro picture is emerging with some positives around the
vaccine. Positive news on the Brexit deal and US stimulus had offset the
fears caused by the new strain of COVID-19.DEBT AND MACRO ECONOMIC OUTLOOK
USD/INR was sold early in the month on account of large corporate inflows, but
was supported by uncertainty around Brexit. EMFX contributed to appreciation
pressure, primarily on strong equity market sentiment towards Brexit and
vaccine-led growth (despite the US Fed being relatively less dovish than
anticipated). At the same time, any sharp appreciation in INR was capped by
sizeable intervention by RBI, as also seen in the 12m premium rising to 4.50%
in the month. Spot rose sharply in the second half of the month on fears of
increased mobility related restrictions in major economies following a more
contagious COVID-19 strain in UK, taking the pair to rise to 73.90. However,
this upmove did not last for long as markets cheered prospects of a long elusive
Brexit deal and economic recovery prospects. (On 24 Dec, UK and the EU
finally agreed on a Brexit trade agreement after nearly nine months of hard
negotiations). The period also witnessed further improvement in market
sentiment following assent of the outgoing US president Trump to the
government financing bill and government stimulus.
G-sec yields drifted higher early in the month, with higher than anticipated Q2
GDP growth seen as reducing prospects of further easing by the MPC.
However, yields fell sharply (with a bull steepening) after RBI refrained from
giving any indication of normalizing or withdrawing surplus liquidity conditions,
while unanimously maintaining an accommodative stance despite an elevated
inflation outlook. Yields continued to drift higher along with rising crude oil
prices for later half of the month. Absence of RBI intervention in secondary
market via OMO purchases in conjunction with greater comfort with twist
operations has indicated central bank’s concerns over high amount of liquidity
generated. At the same time, cancellation of the 10-yr benchmark paper auction
has hinted that RBI would want to prevent further upside in bond yields.
We remain constructive on the shorter end of the yield curve. Short
Duration funds, Corporate Bond funds, Banking & PSU Debt funds,
Money Market funds, Low Duration funds and Ultra Short Duration funds
can be considered by investors with an investment horizon commensurate with
the maturity and duration of the schemes, due to their steady accrual profile and
possible capital appreciation in case of a fall in yields. Having said this, one
should consider aspects such as exit load, capital gains tax and asset
allocation amongst others while evaluating their investment options.SPECIAL ECONOMIC UPDATE
Over the past few months, multiple high frequency leading indicators have
shown a strengthening recovery, though with some slackening of
momentum in November.
India’s curve for COVID-19 has been on a downward slope since peaking in
mid-September, with no signs of a second wave seen yet. In addition, GOI
formally approved two COVID-19 vaccines for emergency use, and is close
to rolling these out shortly.
The above have helped normalising consumer mobility around groceries,
pharmacies and work – also reflected in increase in issuance of e-way bills
(an indicator of movement of goods/commercial activity) and sustained
gains in FASTag payments.
Other indicators supporting pickup in industrial and commercial activity such
as fuel and electricity consumption, GST collections, freight, PMI,
consumption goods’ demand signal resumption of the recovery after festive
season in November.
Besides these, monetary and financial conditions have also remained
conducive, with surfeit liquidity conditions paving the way for economic
revival.
Early improvement in the unemployment rate has been reversed by increase
in the labour force participation, without offsetting jobs being created. As per
the household survey conducted by CMIE, unemployment ticked higher to
9.1% from 6.5% in November.
Broadly, numbers suggests that the recovery can build further on
momentum, once contact intensive services also join the fray, and point to
potential for stronger than anticipated growth prints going ahead.LONG DURATION FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
ICICI Prudential Long Term Bond Fund 10.99 11.56 9.93
Nippon India Nivesh Lakshya Fund 13.39 13.06 --
Category Average 12.19 12.31 9.93
ICRA Composite Bond Fund Index 13.46 12.83 10.52
Data Source: ICRA MFI Explorer
GILT FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
ICICI Prudential Gilt Fund 12.59 11.70 10.02
IDFC G Sec Fund 13.64 13.45 11.51
Nippon India Gilt Securities Fund 11.19 11.78 10.49
SBI Magnum Gilt Fund 11.67 12.41 9.91
UTI Gilt Fund 10.24 11.03 9.41
Category Average 11.36 11.09 9.48
ICRA Composite Gilt Index 13.20 12.27 10.83
Data Source: ICRA MFI ExplorerDYNAMIC BOND FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
Axis Dynamic Bond Fund 12.30 11.63 9.78
ICICI Prudential All Seasons Bond Fund 11.74 10.95 9.33
IDFC Dynamic Bond Fund 12.91 11.94 10.19
Kotak Dynamic Bond Fund 11.67 11.38 9.98
Nippon Dynamic Bond Fund 11.30 9.86 8.11
SBI Dynamic Bond Fund 10.34 11.52 9.34
Category Average 9.63 8.62 7.65
ICRA Composite Bond Fund Index 13.46 12.83 10.52
Data Source: ICRA MFI Explorer
MEDIUM TO LONG DURATION FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
ICICI Prudential Bond Fund 11.47 11.18 8.92
IDFC Bond Fund - Income Plan 11.74 11.06 9.54
SBI Magnum Income Fund 11.59 11.66 9.29
Category Average 10.10 9.34 7.77
ICRA Composite Bond Fund Index 13.46 12.83 10.52
Data Source: ICRA MFI ExplorerSHORT DURATION FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
Axis Short Term Fund 10.11 9.94 8.72
HDFC Short Term Debt Fund 10.93 10.32 9.19
IDFC Bond Fund - Short Term Plan 9.65 9.69 8.60
Kotak Bond Short Term Fund 9.97 9.77 8.59
L&T Short Term Bond Fund 9.67 9.48 8.47
Nippon India Short Term Fund 9.45 9.40 8.07
SBI Short Term Debt Fund 9.83 9.65 8.40
Category Average 8.86 8.50 7.57
CRISIL Short Term Bond Fund Index 10.39 9.96 8.85
Data Source: ICRA MFI Explorer
CORPORATE BOND FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
Aditya Birla Sun Life Corporate Bond Fund 11.86 10.72 9.45
Axis Corporate Debt Fund 11.52 8.76 8.44
HDFC Corporate Bond Fund 11.78 11.05 9.49
IDFC Corporate Bond Fund 11.53 10.00 8.75
Kotak Corporate Bond Fund 9.63 9.62 8.88
L&T Triple Ace Bond Fund 12.35 12.48 10.26
Nippon India Corporate Bond Fund 9.49 8.63 8.04
UTI Corporate Bond Fund 10.99 11.20 --
Category Average 8.81 10.21 8.91
CRISIL Short Term Bond Fund Index 10.39 9.96 8.85
Data Source: ICRA MFI ExplorerBANKING & PSU DEBT FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
Aditya Birla Sun Life Banking & PSU Debt Fund 10.88 10.39 9.11
Axis Banking & PSU Debt Fund 9.56 10.04 9.19
HDFC Banking and PSU Debt Fund 10.54 10.38 8.84
IDFC Banking & PSU Debt Fund 10.90 11.05 9.79
LIC MF Banking & PSU Debt Fund 8.53 9.19 8.51
Mirae Asset Banking and PSU Debt Fund -- -- --
Category Average 10.06 9.72 8.69
CRISIL Short Term Bond Fund Index 10.39 9.96 8.85
Data Source: ICRA MFI Explorer
CONSERVATIVE HYBRID FUNDS
PAST PERFORMANCE (CAGR % RETURNS AS ON 31st DECEMBER, 2020)
CAGR 1 Year 2 Years 3 Years
Axis Regular Saver Fund 13.77 7.7 6.17
Franklin India Debt Hybrid Fund 7.08 7.76 5.83
ICICI Prudential Regular Savings Fund 10.92 10.24 8.48
Kotak Debt Hybrid Fund 13.81 12.48 8.11
Category Average 8.94 7.89 5.58
NIFTY 50 Hybrid Composite Debt 15:85
14.09 12.68 10.31
Index
Data Source: ICRA MFI ExplorerDISCLAIMER T h e report a n d i n f o rm a t i o n c o n t a i n e d h e r e i n is of c o n f i d e n t i al n a t u r e a n d m e a n t o nl y f or t he s e l ec t e d re c i p i e n t a n d s h o u l d n o t b e a l t e r e d in a n y wa y, t r a n s m i t t e d to, c o p i e d or di st ri but e d, in a n y m a n n e r a n d f o rm , to a n y o t h e r p e r s o n o r to t h e m e d i a o r r e p r o d u c e d in a n y f o rm , wi t h o u t pri or wri t t e n a p p r o v a l of A xis B a n k . T h e m a t e ri a l in t h is d o c u m e n t / r e p o r t is b a s e d o n f acts , f i gures a n d i n f o r m a t i o n t hat ar e o b t a i n e d f r o m p u b l i c l y a v a i l a b l e m e d i a o r o t h e r s o u r c e s b e l i e v e d to b e rel i abl e a n d h e n c e c o n s i d e r e d t ru e, c orrec t , re l i a b l e a n d a c c u r a t e b u t A xi s B a n k d o e s n o t g u a r a n t e e o r r e p r e s e n t ( e xp r e s s l y o r i m pl i e d l y ) t hat t h e s a m e a r e t r u e , c o r re c t , re l i a b l e a n d a c c u r a t e , n o t m i s l e a d i n g o r as to its g e n u i n e n e s s , f i t n es s f or t he p u r p o s e i n t e n d e d a n d it s h o u l d n o t b e re l i e d u p o n a s s u c h . T h e o p i ni o n e x p r e s s e d ( i n c l u d i n g es t i m a t es , facts, f i g u r e s a n d f o r e c a s t s ) is g i v e n as of t he d a t e of t his d o c u m e n t is s ubj ec t to c h a n g e wi t h o u t p r o v i d i n g a n y p ri o r n o t i c e of i n t i m a t i o n . A xi s B a n k s h al l h a v e t h e ri g ht s to m a k e a n y k i n d of c h a n g e s a n d a l t e r a t i o n s to t his r e p o r t / i n f o rm a t i o n as m a y b e r e q u i r e d f r om t im e to t im e . H o we v e r , A xi s B a n k is u n d e r n o c o m p u l s i o n to m a i n t a i n o r k e e p t h e d a t a / i n f o r m a t i o n u p d a t e d . T hi s r e p o r t / d o c u m e n t d o e s n o t m e a n an offer o r s o l ic i t a t i o n f o r d e a l i n g ( p u r c h as e or sal e) of a n y f i nanc i al i n s t rum e n t o r as a n of fici al c o n f i rm a t i o n of a n y t r a n s a c t i o n . A xi s B a n k o r a n y of its af f i l i at es / g r o u p c o m p a n i e s s hal l n o t b e a n s we r a b l e o r r e s p o n s i b l e in a n y w a y f o r a n y k i n d of l oss or d a m a g e t hat m a y ari s e to a n y p e r s o n d ue to a n y k i n d of e r r o r in t h e i n f o rm a t i o n c o n t a i n e d in t his d o c u m e n t or o t h e r wi s e . T hi s d o c u m e n t is p r o v i d e d for assistance only a n d s h o u l d n o t b e c o n s t r u e d as t he s ol e d o c u m e n t to b e rel i ed u p o n f or t a k i n g a n y k i n d of i n v e s t m e n t d e c i s i o n . T h e re c i p i e n t is h i m s el f / he r s e l f f ull y r es p o n s i bl e f or the risks of a n y us e m a d e of t his i n f o r m a t i o n . E a c h re c i p i e n t of t h is d o c u m e n t s h o u l d m a k e hi s / h e r o w n r e s e a rc h , a n a l ys i s a n d i n v e s t i g a t i o n as h e / s h e d e e m s fit a n d r e l i a b l e to c o m e at a n i n d e p e n d e n t e v a l u a t i o n of a n i n v e s t m e nt in t h e s e c u ri t i e s o f c o m p a n i e s m e n t i o n e d in t his d o c u m e n t (i nc l u di n g t he m eri t s , d em e r i t s a n d risks i n v o l v e d ) , a n d s h o u l d f u rt h e r t a k e o p i n i o n of o w n c o n s u l t a n t s , a d v i s o rs to d e t e r m i n e t h e a d v a n t a g e s a n d risks of s u c h i n v e s t m e n t . T h e i n v e s t m e n t d i s c us s e d o r vi e ws e x p r e s s e d h e r e i n m a y n o t s ui t t he r e q u i r e m e n t s f o r all i n ve s t o rs . A xi s B a n k a n d its g r o u p c o m p a n i e s , af f ili at es , di rec t ors , a n d e m p l o y e e s m a y : (a) f r o m t i m e to t im e, h a v e l o n g o r s hort p o s i t i o ns in, a n d d e a l (b uy a n d / o r sell t he s ec uri t i es ) t h e r e o f , of c o m p a n y (i e s) m e n t i o n e d h e r e i n o r (b) b e e n g a g e d in a n y o t h e r t ra n s a c t i o n i n v ol v i n g s u c h s e c u ri t i e s a n d e a r n c o m m i s s i o n / b r o k e r a g e o r o t h e r c o m p e n s a t i o n o r ac t as a d v i s o r or l e n d e r / b o r r o w e r to s u c h c o m p a n y (i es) or h a v e o t h e r p o t e n t i a l c onf l i c t of i nt eres t wi t h r e s p e c t to an y r e c o m m e n d a t i o n a n d r e l a t e d i n f o rm a t i o n a n d o p i n i o n s . T h e a p p l i c a b l e S t a t u t or y R u l es a n d R e g u l a t i o n s m a y n o t a l l o w t h e d i s t ri b u t i o n of t h is d o c u m e n t in c e rt a i n j u ri s d i c t i ons , a n d p e r s o n s w h o a r e in p o s s es s i o n of t his d o c u m e n t , s h o u l d i n f o rm t h e m s e l v e s a b o u t a n d f ol l o w, a n y s uc h res t ri c t i ons . T hi s report is n o t m e a n t , d i r e c t e d or i n t e n d e d f o r d i s t ri b u t i o n to, o r u s e by, a n y p e r s o n o r ent it y w h o is a c i ti zen o r r e s i d e n t of o r l oc a t e d in a n y locality, s t a t e , c o u n t r y or o t h e r j u ri s d i c t i o n , w h e r e s u c h di s t ri but i o n, p u b l i c a t i o n , av ai l a bi l i t y o r us e w o u l d n o t b e in c o n f o r m a t i o n to t h e law, r e g u l a t i o n o r wh i c h wo u l d r e q u i r e A xi s B a n k a n d af f i l i at es / g r o u p companies to obtain any re g i s t ra t i o n o r l i c e n s i n g re q u i r e m e n t s wi t hi n s u c h juri s di c t i on . N e i t h e r A xi s B a n k n o r a n y of its a f fili at e s, g r o u p c o m p a n i e s , di r ec t ors , e m p l o y e e s , a g e n t s o r r e p r e s e n t a t i v e s s hal l b e h e l d r e s p o n s i b l e , li a b l e f o r a n y k i n d of c o n s e q u e n t i a l d a m a g e s w h e t h e r di rec t , i ndi rec t , s pec i al o r c o n s e q u e n t i a l i n c l u d i n g b u t n o t l im i t e d to l ost r e v e n u e , l ost prof i t s , n o t i o n a l l oss es t hat m a y ari s e f r om or in c o n n e c t i o n wi t h t h e u s e o f t h e i n f o rm a t i o n . P r os p ec t i v e i nves t ors a n d o t h e r s a r e c a u t i o n e d a n d s h o u l d b e a l e rt t h a t a n y f o r w a r d - l o o k i n g s t a t e m e n t s a r e n ot p r e d i c t i o ns a n d m a y b e s ubj ec t to c h a n g e wi t h o u t p r o v i d i n g a n y n o t i c e . P a s t p e r f o r m a n c e s h o u l d n o t b e c o n s i d e r e d a s a r e f e r e n c e to f ut ure p e r f o r m a n c e .
DISCLAIMER T h e d i s c l o s u r e s of i n t e re s t s t a t e m e n t s if a n y i nc l u d ed in t his d o c u m e n t a r e p r o v i d e d o nl y to e n h a n c e t h e t r a n s p a r e n c y a n d s h o u l d n o t b e c o n s t r u e d as c o n f i rm a t i o n of t he v i e ws e xp r e s s e d in t h e re p ort . T h e v i e ws e x p r e s s e d in t h is report re f l ect t h e p e r s o n a l v i e ws of the a u t h o r of t he r e po rt a n d d o n ot ref l ect t he v i e ws of A xi s B a n k o r a n y o f its a s s o c i a t e a n d g r o u p c o m p a n i e s a b o u t t h e s ubj ec t c o m p a n y o r c o m p a n i e s a n d its or their securities. T h i s d o c u m e n t is p u b l i s h e d b y A xi s B a n k L i m i t e d (“Axis B a n k ” ) a n d is di s t ri bu t e d in S i n g a p o r e b y t h e S i n g a p o r e b r a n c h of A xi s B a n k . T h i s d o c u m e n t d o e s n o t p r o v i d e i n di vi du al l y t a i l ore d i n v e s t m e n t a d v i c e . The c o n t e n t s in t his d o c u m e n t h a v e b e e n p r e p a r e d a n d ar e i n t e n d e d f or g e n e r a l c i rc ul at i on . T h e c o n t e n t s in t h is d o c u m e n t d o n o t t a k e i n t o a c c o u n t t h e s pec i f i c i n v e s t m e n t obj ec t i ves , f i n anc i al s i t uat i on, o r particular n e e d s of a n y p a r t i c u l a r p e rs o n . T h e s ec uri t i es a n d / o r i n s t r um e n t s di s c u s s e d in t his d o c u m e n t m a y n o t b e s u i t a b l e f o r all i n v e s t o r s . A xi s B a n k r e c o m m e n d s th a t y o u i n d e p e n d e n t l y e v a l u a t e p a r t i c u l a r i n v e s t m e n t s a n d s t rat egi es a n d e n c o u r a g e s y o u to s e e k a d v i c e f r o m a f i n a n c i al a d v i s e r r e g a r d i n g t he s ui t abi l i t y of s u c h s ec uri t i es a n d / o r i n s t r u m e n t s , t a k i n g i nt o a c c o u n t y o u r s p e c i f i c i n v e s t m e n t obj ec t i ves , f i na nc i al s i t uat i o n a n d p a r t i c ul a r n e e d s , b e f o r e m a k i n g a c o m m i t m e n t to p u r c h a s e a n y s ec uri t i es a n d / o r i n s t r um e n t s . T hi s is b e c a u s e t h e a p p r o p r i a t e n e s s of a p a r t i c u l a r s ec u rit y, i n s t r um e nt , i n v e s t m e nt o r s t rat eg y will d e p e n d o n y o u r i n d i v i d u a l circumstances and investment o b j e c t i ve s , f i nanc i al s i t uat i on and p a r t i c ul a r needs. The s e c ur i t i es , i n v e s t m e n t s , i n s t r u m e n t s or s t ra t e g i e s d i s c u s s e d in this d o c u m e n t m a y n o t b e s ui t abl e f or all i nves t ors , a n d c e rt a i n i n ve s t o rs m a y n o t b e e l i g i b l e to p u r c h a s e o r p a r t i c i p a t e in s o m e o r all of t h e m . T h i s d o c u m e n t is n o t a n o f f e r to b u y o r sell or t he s ol i c i t at i on of a n of f er to b u y o r sell a n y s ec uri t y a n d / o r i n s t r u m e n t o r to p a r t i c i p a t e in a n y p a rt i c u l a r t r a di n g st rat egy . A xi s B a nk , its as s oc i a t es , of f i c ers a n d / o r e m p l o y e e s m a y h a v e i n t e re s t s in a n y p r o d u c t s r ef e r r e d to in t his d o c u m e n t b y a c t i n g in v a r i o us rol es i n c l u d i n g as dist ri b ut o r, h o l d e r of p ri n c i p a l p o s i t i ons , a d v i s e r o r l ender. A xi s B a n k , its as s oc i a t es , o f f i c ers a n d / o r e m p l o y e e s m a y r e c e i v e f e e s , b r o k e r a g e o r c o m m i s s i o n s f or a c t i n g in t h o s e c a p a c i t i es . In a d d i t i o n, A xi s B a n k , its a s s o c i a t e s , o f f i c e rs a n d / o r e m p l o y e e s m a y b u y o r sell p r o d u c t s a s p ri nc i p a l or a g e n t a n d m a y e f f e c t t r a n s a c t i o n s wh i c h a r e n o t c o n s i s t e n t wi t h t he i n f o r m a t i o n s et o u t in t hi s d o c u m e n t . A xi s B a n k a n d its a f f i l i a t e s d o b u s i n e s s t h a t rel at e s to c o m p a n i e s a n d / o r i n s t r um e nt s c o v e r e d in t his d o c u m e n t , i n c l u d i n g m a r k e t m a k i n g a n d s p e c i a l i z e d tradi ng, risk ar b i t r a g e a n d o t h e r p r o p r i et a r y t radi ng, f u n d m a n a g e m e n t , c o m m e r c i a l b a n k i n g , e xt e n s i o n of c redi t , i n v e s t m e n t s ervi c e s a n d i n v e s t m e n t b a n k i n g . A xi s B a n k s e lls to a n d b u y s f r o m c u s t o m e r s t h e s ec uri t i es a n d / o r i n s t r um e n t s of c o m p a n i e s c o v e r e d i n t his doc um ent as principal or agent. A xi s B a n k m a k e s e v e r y e ffo rt to u s e re l i a b l e a n d c o m p r e h e n s i v e i n f o rm a t i o n , bu t m a k e s n o r e p r e s e n t at i o n t h a t it is a c c u r a t e or c o m p l e t e . A xi s B a n k h a s n o o b l i g a t i o n to i nf o rm y o u w h e n o p i n i o n s o r i n f o r m a t i o n in t h is d o c u m e n t c h a n g e . F a c t s a n d v i e ws p r e s e n t e d in t his d o c u m e n t h a v e n ot b e e n r e v i e w e d by, a n d m a y n o t re f l ec t i n f o rm a t i o n k n o w n to, p r o f e s s i o n a l s in o t h e r A xi s B a n k b u s i n e s s a re a s , i nc l u d i n g i n v e s t m e n t b a n k i n g p e r s o n n e l . A xi s B a n k a c c e p t s n o l i a bili t y wh a t s o e v e r f or a n y l oss or d a m a g e of a n y k i n d ari s i ng o u t of t h e u s e of t h e c o n t e n t s in t his d o c u m e n t . A xi s B a n k ’ s c o m m e n t s a r e a n e x p r e s s i o n of o p i n i o n . W hi l e A xi s B a n k b e l i e v e s t h e s t a t e m e n t s to b e t ru e , t he y a l wa y s d e p e n d o n t h e reliabil it y of A xi s B a n k ’ s o w n credible sources. D i s c l a i m e r fo r D I F C b r a n c h : A xi s B a n k , D I F C b r a n c h is d u l y l i c e n s e d a n d r e g u l a t e d in t he D u b a i I n t e r n a t i o n a l F i n a n c i al C e n t r e b y t he D u b a i F i n a n c i a l S e r vi c e s A u t h o r i t y (“DF S A ”) . T hi s d o c u m e n t is i n t e n d e d f or us e o nl y b y P r o f e s s i o n a l Cl i e n t s (as d e f i n e d b y R u l e 2 . 3 . 2 s et o u t in t he C o n d u c t of B u s i n e s s M o d u l e of t he D F S A R u l e b o o k ) w h o s atis f y t h e r e g u l a t o r y c ri t e ri a s e t o u t in t h e DF S A ’ s rul es , a n d s h o u l d n ot b e re l i ed u p o n , a c t e d u p o n o r d i s t r i b u t e d to a n y o t h e r p e r s o n ( s ) o t h e r t h a n t he i n t e n d e d r e c i p i e n t . Axis Bank Ltd. is acting as an AMFI registered Mutual Fund Distributor under the ARN code of ARN-0019
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