Axis Short Term Fund has managed a one-year return of 9.02 per cent and a three-year return of 9.68 per cent, which were 36 and 61 basis points above the category returns, respectively.

The returns place it in the mid-quartile of the short-term category. However, they are reasonable if one considers the portfolio positioning. An analysis of the fund's portfolio over the years shows that it has never assumed excessive credit risks.

The portfolio has been consistently invested in sovereign debt, AAA or A1+ rated corporate paper with occasional sub-5 per cent exposure to AA rated debt. It hasn't taken aggressive duration calls either, with the latest average maturity at 2.1 years. This low-risk approach has also made for moderate returns.

Axis Short Term Fund expense ratio, at 0.85 per cent is only slightly lower than the category average of 0.93 per cent.