Axis Mutual's Shah suggests shifting to short term bonds

A POSITIVE MACRO environment and a benign interest rate outlook, among other factors, fuelled a rally in the debt market over the past 15 months, enabling Axis Mutual Fund to capture value from higher-duration bonds, according to its head of fixed income Devang Shah.

- ANANYA GROVER

However, he believes that this rally is nearing its end. "We have started to shift some of our allocations from long-term to short-term bonds with a 3-5-year duration," he said, adding that with each incremental rally, the fund is reducing its exposure to long-term bonds.