Axis Floating Interest Rates Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Axis Floating Interest Rates Fund Direct Growth Plan has a NAV of ₹1425.3889 as of 16 Sep 2026 and a scheme AUM of ₹148 Cr. Its 1-year, 3-year and 5-year returns are 7.19%, 8.26% and 7.18%, and it sits in the Medium Risk bucket.

Our view is that this is a relatively steady debt option for investors who want floating-rate exposure with a moderate risk profile and a portfolio anchored in government securities, corporate debt and floating-rate instruments. The recent return pattern is a little softer than the stronger 3-year compounding pace, but the longer horizon still looks orderly rather than erratic.

Quick facts

Particular	Details
NAV	₹1,425.3889 as of 16 Sep 2026
AUM	₹148 Cr
Expense Ratio	0.19%
Launch Date	29 Jul 2021
Min SIP	₹1,000
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load
Fund Managers	Aditya Pagaria, Hardik Shah

The fund is managed by Aditya Pagaria and Hardik Shah.

Source data date: as of 16 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-0.28%	-4.41%
3M	1.99%	-3.60%
1Y	7.19%	-7.76%
3Y	8.26%	5.74%
5Y	7.18%	5.67%

The short-term picture is more restrained than the multi-year record, but it is still notably better than the benchmark over every period shown. Over 1 month and 3 months, the fund held up better than the benchmark, which suggests more stability during a weak benchmark phase rather than strong one-way gains.

The 1-year return of 7.19% is clearly above the benchmark’s -7.76%, so the fund has protected capital much better in a difficult year for the benchmark. That same pattern is visible in the 3-year and 5-year figures, where the fund’s 8.26% and 7.18% returns remain ahead of the benchmark’s 5.74% and 5.67%.

What matters most for us is the shape of the return journey. The path looks steadier than a high-volatility debt strategy, and the longer-term figures suggest a consistent compounding pattern rather than a sharp surge followed by a reversal. The recent 1-month dip does not change the broader picture, but it does remind investors that even a medium-risk debt fund can have short patches of weakness.

Overall, the fund’s recent behaviour is not as strong as its 3-year record, yet the longer horizon still supports a disciplined floating-rate allocation for investors who prefer smoother participation over aggressive upside.

Source data date: as of 16 Sep 2026

Should you BUY or HOLD Axis Floating Interest Rates?

A fund's past returns alone don't tell you whether you should buy it today or continue holding it.

The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.

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Peer comparison

Fund	1Y return	3Y return	5Y return
Axis Floating Interest Rates Fund Direct Growth Plan	7.19%	8.26%	7.18%
Bandhan Floating Interest Rates Fund Direct Growth Plan	6.81%	7.84%	6.77%
Franklin India Floating Interest Rates Fund Direct Growth Plan	6.75%	8.03%	7.18%
ICICI Pru Floating Interest Rates Fund Direct Growth Plan	6.7%	7.75%	7.05%
SBI Floating Interest Rates Fund Direct Growth Plan	6.56%	7.44%	6.71%

Among the available peer return figures, this fund’s 1-year return is ahead of the other listed funds, which tells us its recent behaviour has been comparatively firm. On the 3-year measure, it also stays above the other funds shown, even though Franklin India Floating Interest Rates Fund Direct Growth Plan is close at 8.03%.

The 5-year comparison is more mixed because Franklin India Floating Interest Rates Fund Direct Growth Plan matches the fund at 7.18%, while ICICI Pru Floating Interest Rates Fund Direct Growth Plan and SBI Floating Interest Rates Fund Direct Growth Plan trail lower on the same measure. That makes the longer-run picture more balanced than the 1-year comparison.

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

Source data date: as of 16 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
6.94% Government of India (11/05/2036)	Government Securities	16.81%
6.95% REC Limited (18/02/2028) **	Corporate Debt	6.68%
7.34% Government of India (22/04/2064)	Government Securities	6.04%
Clearing Corporation of India Ltd	Cash & Cash Equivalents and Net Assets	3.79%
Jubilant Bevco Limited (31/05/2028) (ZCB) **	Corporate Debt	3.76%
Jubilant Beverages Limited (31/05/2028) (ZCB) **	Corporate Debt	3.75%
7.71% Government of India (18/05/2066)	Government Securities	3.4%
7.86% Bihar State Development Loans (11/02/2039)	Government Securities	3.4%
7.96% Pipeline Infrastructure Private Limited (11/03/2028) **	Corporate Debt	3.38%
360 One Prime Limited (25/07/2028) (FRN) **	Floating Rate Instruments	3.37%

The largest holding is 6.94% Government of India (11/05/2036) at 16.81%, which is large enough to matter on its own but not so dominant that it defines the entire portfolio. The move from the first holding to the tenth is fairly gradual after the top two positions, which suggests the portfolio is built around a few meaningful anchors and a cluster of smaller positions.

The top 10 holdings account for approximately 54.38% of the portfolio, and there are 26 disclosed holdings in total. That tells us the fund is not a one-position portfolio, yet the disclosed book is still concentrated enough that a limited set of securities may carry greater influence on returns and volatility than the long tail.

A government-security heavy core, along with corporate debt and floating-rate instruments, may help the fund keep its profile relatively orderly for a debt scheme. The presence of several holdings in the 3% to 7% range also suggests diversification beyond the single largest bond, which can reduce dependence on any one security.

To see all holdings, visit the Axis Floating Interest Rates Fund Direct Growth Plan page

Source data date: as of 16 Sep 2026

Who should invest

This fund may suit investors who are comfortable with medium risk and want a debt allocation that has shown steadier behaviour over longer periods than in the most recent month. The 1-year, 3-year and 5-year returns all sit above the benchmark, which makes it more attractive for investors who value relative resilience over chasing sharp short-term moves.

The better fit is likely to be someone with a medium to longer investment horizon who can tolerate some fluctuation in a floating-rate debt strategy. The main trade-off is that the portfolio may not deliver dramatic upside, but it may offer a more measured path with return stability that has held up better than the benchmark across the periods shown.

Tax and exit load

Holding period	Tax rate	Description
Units held less than 1 year	20%	Short-term capital gains tax
Units held more than 1 year	12.5%	Long-term capital gains tax

Exit load: No exit load.

Source data date: as of 16 Sep 2026

Frequently asked questions

What is the current NAV of Axis Floating Interest Rates Fund Direct Growth Plan?

The current NAV is ₹1425.3889 as of 16 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?

The fund’s returns are 7.19% for 1 year, 8.26% for 3 years and 7.18% for 5 years.

How does the fund compare with its benchmark?

It has outperformed the benchmark across every period shown. The 1-year return is 7.19% versus -7.76% for the benchmark, while the 3-year and 5-year returns also stay ahead.

How does the fund compare with the listed peer funds?

Its 1-year return is the strongest among the listed peer funds, and its 3-year return is also ahead of the others shown. On 5 years, it is level with Franklin India Floating Interest Rates Fund Direct Growth Plan at 7.18%.

Is there a minimum SIP for this fund?

Yes. The minimum SIP amount is ₹1000.

Who manages the fund and what is the exit load?

The fund is managed by Aditya Pagaria and Hardik Shah. There is no exit load.

Bottom line

Axis Floating Interest Rates Fund Direct Growth Plan has a steadier longer-term record than its very recent 1-month move suggests, and its multi-year returns remain above the benchmark. In the peer set shown, it looks competitive on 1-year and 3-year performance, while the 5-year picture is broadly in line with the stronger names rather than clearly separated from them. The portfolio is anchored by government securities and a meaningful cluster of corporate debt and floating-rate holdings, which may help keep the scheme’s behaviour measured. That combination makes it more relevant for investors seeking a medium-risk debt allocation with a stable core.

Published on 17 September 2026 at 11:12 AM IST

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RIA disclosure

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.