Axis Mutual Fund’s assets under management reached $39.34 billion during the April‑June 2026 quarter, marking a steady expansion in its flagship equity mandate.
Shreyash Devalkar, Head of Equity, underscored that the financial services segment remains one of the strongest investment prospects in India, citing favourable valuations, solid asset quality and a noticeable uptick in credit growth as the main drivers.
Devalkar also highlighted manufacturing‑linked themes—power equipment, capital goods, electronic manufacturing services, auto ancillaries and contract development and manufacturing firms—as key areas for tactical exposure, even though valuations across these sub‑sectors are presently elevated.
Turning to technology, Devalkar warned that earnings growth in IT remains weak, with revenue expansion hovering near 5% or lower; artificial intelligence adds another layer of uncertainty, making the sector more suitable for short‑term trades than long‑term holdings.
On the insurance front, Axis Mutual Fund has stayed underweight amid recent regulatory changes; Devalkar said it will reassess the space after the latest results come in, but it is too early for definitive commentary.
Macro‑economic risks are tightening: higher crude oil and commodity prices, coupled with rising global bond yields, could squeeze corporate margins and dampen capital inflows into emerging markets. Devalkar cautioned that these headwinds could pressure inflation and corporate earnings.
Looking ahead, Devalkar remains focused on financials and manufacturing, while keeping a cautious eye on IT and reviewing insurance opportunities post‑results. The fund’s strategy will continue to balance sector exposure with valuation and risk considerations as the market evolves.