AXIS LONG TERMEQUITY FUNDAn open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit

Stock returns vary widely, high risk not equal to high return

Axis Mutual Fund 2

Variation in top and bottom stocks over the last 10 years

% CAGR (CY 07-17)

BSE 100 index 5.9

Top quartile 17.9

Bottom quartile (16.9)

Our strategy relies on bottom up selection of quality companies that can deliver sustainable growth

Source: Bloomberg, Past performance may or may not be sustained in future. BSE 100 is used in this example only for illustrative purposes only. The benchmark of the scheme is S&P BSE 200 Index

Weak companies have

destroyed significant

investor wealth

We offer a tight basket of clearly positioned equity funds

Active Risk

Axis Long

Term Equity

Fund

Axis Midcap Fund

Axis

Bluechip

Fund£

Axis

Focused 25

Fund

Axis Small Cap Fund

Large Cap: 50 - 100%

Mid Cap: Max 50%

>65% in Midcaps

>90% in top 200 companies by

market cap

Large Cap: 80 - 100% |Mid Cap: 0 - 20%

Active R

etu

rns

Small caps

Axis

Multicap

Fund Large Cap: 50 - 100%

Mid Cap: Max 50%

Large Cap

Focused

ELSS

Multicap

Midcap

Smallcap

Note: Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets. Type of Scheme (Axis Long Term Equity Fund):

An open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit. The bubbles in the chart are proportionate to their sizes respectively. Market cap buckets as per SEBI/AMFI

classification.£ Formerly known as Axis Equity Fund

Axis Mutual Fund

Axis Long Term Equity Fund: Positioning

4

1

2

3

An open ended equity linked saving scheme with a statutory lock

in of 3 years and tax benefit

Offers tax benefit under section 80C of the Income Tax Act, 1961

Invests across market cap*

Large caps around 50-100% and

midcaps up to 50%

Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets. Market cap buckets as per SEBI/AMFI classification.

Invests in quality businesses for

the long term through bottom up

stock picking

3 year lock-in eliminates near term

pressure on stock selection

Can support quality businesses

through their market cycle

Axis Mutual Fund

Unique long term orientation that helps investors

5

Benefits of 3 year lock-in period

Past performance may or may not be sustained in future.

Investor Perspective Fund manager perspective

Investment horizon aligned with the market cycleFocus on long term wealth creation opportunities while ignoring

short term market noise

Discipline of looking at long term factors while making

allocationsNo tactical/hot money flows into the fund

Wealth creation potentialGreater leeway to enter/ exit positions –provides headroom to

manage a large corpus

A unique strategy that has a consistent track record of generating wealth for investors for the long term

Axis Mutual Fund

What do we mean by quality businesses?

6

Strong competitive

positioning

Cash flow generating with

sound balance sheet

Credible management team Sustainable Growth Potential

Focus on steady consistent and long term portfolio with limited down side risk

Axis Mutual Fund

Summary – Portfolio construction

7

We invest in

• High quality leaders, solid growth, impeccable execution, strong finances especially decent Operating Cash Flows and less geared

We avoid

• PSUs, highly cyclical and highly regulated sector

Outcome: Stringent benchmark agnostic stock selection, compact

portfolio reflecting high conviction, long holding periods

Bottom up portfolio aiming to deliver steady and consistent returns for investors

Axis Mutual Fund

Source: Axis AMC Internal Analysis.

Key themes to play

8

Rural India Infrastructure/Housing

Axis Mutual Fund

Rural India – A Land of Opportunity!

• More than 80% of India`s population lives in rural India

• Improving trend in real rural wage growth is directly encouraging for rural consumption outlook and indirectly for the aggregate demand and for the investment cycle.

Impacted sectors:

• Rural Housing

• Rural Infrastructure

• Rural Finance

• Any other sector that has an edge over peersdue to rural aspects

9

262 339

627 624

814 709

571 646

731 792

985 1,086

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

RE

2018

BE

Govt’s rural spending has gone

up over the past few years (Rs

bn)

2.6 2.01.4

2.4 2.51.3

-0.2-1.2

0.4

2.01.8 2.3

4.4 4.9

-3.0

-1.0

1.0

3.0

5.0

Nov-16 Feb-17 May-17 Aug-17 Nov-17

Rising food prices is helping the terms of trade

in favor of Indian farmers

Source: Budget 2018 documents, Kotak Institutional Equities. Deutsche Bank, CMIE, Axis MF Internal Analysis

Axis Mutual Fund

Infrastructure

10

Source: ibef.org, Ministry of Statistics and Programme Implementation (MoSPI)

Sector# of

Projects

Cumulative

Expenditure (US$)

Roads & Highways 91 8.7 bn

Power 73 16.6 bn

Petroleum 65 19.5 bn

Railways 33 3.8 bn

Steel 20 8.1 bn

Shipping & Ports 20 1.8 bn

Telecommunications 14 463.6 mn

Coal 9 2.3 bn

Fertilizers 6 596.2 mn

Civil Aviation 5 861.2 mn

Urban Development 5 678.8 mn

Atomic Energy 1 168.9 mn

Robust demand

• India requires Rs 50 tn investment in infra by 2022 for sustainable development

Improved logistics

• In 2016, India jumped 19 places in World Bank's Logistics Performance Index, to rank 35/160.

Attractive opportunities

• Only 24% of National Highway network in India is four-lane

Foreign Flows

• Increasing impetus to develop infrastructureis attracting foreign players

Policy Support

• Push for rural development, ‘Housing for All’, ‘Smart Cities Mission’ and UDAY Scheme giving support

Axis Mutual Fund

Source: Data as on 31st May 2018, Source: Citi, IIFL, Bloomberg

Affordable housing

• Housing sector to drive capex

• Social housing boom to end property slowdown with affordability at best ever affordability levels

• Government support favourable :Housing for All by 2022 is the vision

11

3027

24 23

28

32

4139

3027

3336

34 3432

30

26

FY01 FY03 FY05 FY07 FY09 FY11 FY13 FY15 FY17

Housing affordability levels (%) Houses completed

FY 17-19 target of 10mn houses completed

0.3

1.1 1.1

1.7 1.8

3.2

5.1

0

1

2

3

4

5

6

FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 BE

Houses Completed Per YearIn Mn

Axis Mutual Fund

Source : ValueFY, ACEMF.

Note: Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets. Market cap buckets as per SEBI/AMFI

classification. Past performance may or may not be sustained in the future. Stock(s) / Issuer(s)/ Top stocks with increased or decreased exposure mentioned above are for the purpose of disclosure of the

portfolio of the Scheme(s) and should not be construed as recommendation to buy/sell/ hold. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time.

Runs a multi cap strategy

12

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

May-16 Nov-16 May-17 Nov-17 May-18

Large Cap Midcap Small Cap

Axis Mutual Fund

Note: Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets. Matched Portfolio refers to the % of the portfolio

overlapping with its benchmark.

Focus on bottom up stock picking while being benchmark agnostic

13

20%

22%

24%

26%

28%

30%

32%

May-16 Nov-16 May-17 Nov-17 May-18

Common positions between portfolio and benchmark

Axis Mutual Fund

ALTEF: Changes made to the portfolio over the last year

While the broad positioning of the portfolio has remained stable over the last 1 year, stock specific adjustments have

been made

Portfolio Characteristics May 18

Matched Portfolio 29%

No. of Stocks 36

Market Cap Mix*

Large Caps:65%

Mid Caps: 25%

Small Caps: 5%

Top 10 stocks (% of portfolio) 58%

Long term holdingsNo of stocks held for at least 3 years: 19

Current weight in these stocks: 61%

Top stocks with increased

exposure/entries

Change in exposure

(%) over last year

Top stocks with reduced exposure/

exits

Change in exposure (%)

over last year

Tata Consultancy Services Ltd. 6.6 Bosch Ltd. (4.0)

GRUH Finance Ltd. 2.6 Larsen & Toubro Ltd. (3.4)

Avenue Supermarts Ltd. 2.6 Cummins India Ltd. (3.0)

Bandhan Bank Ltd. 2.4 Motherson Sumi Systems Ltd. (2.2)

Sun Pharmaceuticals Industries Ltd. 2.2 Nestle India Ltd. (1.5)

Source : ValueFY, ACEMF. Note: Current Portfolio Allocation is based on the prevailing market conditions and is subject to changes depending on the fund manager’s view of the equity markets. Market cap buckets

as per SEBI/AMFI classification. Past performance may or may not be sustained in the future. Stock(s) / Issuer(s)/ Top stocks with increased or decreased exposure mentioned above are for the purpose of

disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation to buy/sell/ hold. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time.

Axis Mutual Fund

Portfolio & Risk Parameters (May 18)

Top 5 sector holdings Risk parameters (3 years)

Top 10 stocks Current market cap split (% NAV)

15Axis Mutual Fund

Performance

16

*Type of Scheme: An open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit. Past performance may or may not be sustained in future. Calculations are based on Growth Option NAV. Since inception (29 December 2009) returns is calculated on ` 10 invested at inception. Different plans have different expense structure. Plan of the scheme for which performance is given is indicated above. Jinesh Gopani is managing the scheme since 1st April 2011and he manages 4 schemes of Axis Mutual Fund.The performance of the scheme is benchmarked to the Total Return variant of the Benchmark Index (TRI) in terms of SEBI circular dated Jan. 4, 2018. Returns greater than 1 year are Compounded Annual Growth Rates (CAGR).

Axis Mutual Fund

One of the lowest lock-in periods among other tax saving instruments

17

* Subject to conditions. Please consult your tax / investment advisor for more details. Numbers indicate lock in period in years. Tax benefit under section 80C of the Income Tax Act, 1961.

15

33-5

5

5

Public Provident Fund*

(PPF)

National Savings

Certificate*

(NSC)

Life Insurance

Premium / ULIPs*

(Unit Linked

Insurance Plans)

Tax Saving Bank

Deposits*

Equity Linked

Savings

Scheme from

Mutual Funds

(ELSS)*

Axis Mutual Fund

SIP Performance as on May 31, 2018

18

Axis Long Term Equity Fund – Growth (Inception: 29th Dec 2009)

SIP Investments (Monthly SIP of Rs 10,000 invested on the 1st working day of each month)

Since Inception

SIP5 Year SIP 3 Year SIP 1 Year SIP

Total Amount Invested 1,010,000 600,000 360,000 120,000

Market value as on May 31, 2018 2,442,295 988,278 468,026 132,448

Returns (Annualised) % 20.28% 20.08% 17.83% 19.88%

Benchmark Returns (Annualised) % 13.46% 14.83% 15.22% 9.14%

Additional Benchmark Returns (Annualised) % 12.27% 13.21% 14.60% 11.35%

Past performance mayor may not be sustained in future. Calculations are based on Growth Option NAV. Different plans have different expense structure. Plan of the scheme for which performance is given is

indicated above. SIP returns are computed after accounting for the cash flow by using XIRR method (investment internal rate of return). Returns greater than 1 year are compounded annualised. The performance of

the scheme is benchmarked to the Total Return variant of the Benchmark Index (TRI) in terms of SEBI circular dated Jan. 4, 2018. Benchmark: S&P BSE 200. Additional Benchmark: Nifty 50. Inception Date: Dec 29,

2009. Jinesh Gopani is the fund manager & he manages 5 schemes. Please refer to annexure for performance of all schemes managed by the fund manager.

Axis Mutual Fund

Annexure

19

^An open ended equity linked savings scheme with a 3 year lock-in. The above data excludes performance of all schemes which have not completed a year. The performance of the scheme is benchmarked to the Total Return variant of the Benchmark Index (TRI) in terms of SEBI circular dated Jan. 4, 2018. @The performance data for 3 years period has not been provided for scheme/plan not in existence for 3 years. @@The performance data for 5 years period has not been provided for scheme/plan not in existence for 5 years.Past performance may or may not be sustained in future. Calculations are based on Growth Option NAV. Different plans have different expense structure. Plan of the scheme for which performance is given is indicated above.Jinesh Gopani is managing Axis Long Term Equity Fund since 1st April 2011 and Axis Focused 25 Fund since 7th June 2016 andAxis Multicap Fund, Axis Emerging OpportunitiesFund - Series 1 and Series 2 since inception.

Axis Mutual Fund

Product Labelling

Fund Name Riskometer Product Labelling

Axis Long Term Equity Fund(An open ended equity linked saving scheme with a

statutory lock in of 3 years and tax benefit)

This product is suitable for investors who are seeking*

• Capital appreciation & generating income over long

term

• Investment in a diversified portfolio predominantly

consisting of equity and equity related instruments.

Axis Focused 25 Fund(An open ended equity scheme investing in maximum

25 stocks investing in large cap, mid cap and small

cap companies.)

This product is suitable for investors who are seeking*

• Capital appreciation over long term

• Investment in a concentrated portfolio of equity &

equity related instruments of up to 25 companies

Axis Emerging Opportunities Fund –

Series I (1400 Days)(An Close ended equity fund)

This product is suitable for investors who are seeking*

• Capital appreciation over long term

• Investment in a diversified portfolio of equity and

equity related instruments of midcap companies

Axis Emerging Opportunities Fund –

Series II (1400 Days)(An Close ended equity fund)

This product is suitable for investors who are seeking*

• Capital appreciation over long term

• Investment in a diversified portfolio of equity and

equity related instruments of midcap companies

20Axis Mutual Fund

Statutory Details and Risk Factors

Disclaimer: Past performance may or may not be sustained in the future.

Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored byAxis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: AxisAsset Management Co. Ltd. (the AMC) Risk Factors: Axis Bank Limited is not liable or responsible for any loss orshortfall resulting from the operation of the scheme.

This document represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for aninvestment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management CompanyLimited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arisefrom the use of the information contained herein. No representation or warranty is made as to the accuracy,completeness or fairness of the information and opinions contained herein.The AMC reserves the right to makemodifications and alterations to this statement as may be required from time to time.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Data updated as on May 31, 2018

21Axis Mutual Fund

Mutual Fund investments are subject to

market risks, read all scheme related

documents carefully

Thank you