AXIS MIDCAP FUND(An open ended equity scheme predominantly investing in Mid Cap stocks)

GO FOR MORE

There is a high dispersion in long term stock performance

Copyright 2018 | Axis Mutual Fund | Confidential 2

CNX Midcap Index – Stock dispersion (2007-2017)

Source: Bloomberg, Data considered from Dec 2007 - Dec 2017

% pa % Absolute

Quartile I 26.8% 1025.7%

Quartile II 12.1% 224.6%

Nifty Midcap 100 Index 8.7% 129.5%

Quartile III 0.3% 7.3%

Quartile IV -16.8% -73.9%

Weak companies

have destroyed

significant investor

wealth

Large dispersion in stock performance in

mid-caps

• The cost of mistakes can be very high –

permanent capital erosion

• Stock picking and focus on

sustainability becomes key

Axis Midcap Fund: Positioning

Copyright 2018 | Axis Mutual Fund | Confidential 3

1

2

3

Invests at least 75% in mid

cap companies^

Risk management embedded in the investment

process

Follows a strategy of combining growth potential of

mid cap companies with the track record of larger

companies

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 caps are defined as per SEBI regulations

as below: a. Large Cap: 1st -100th company in terms of full market capitalization. b. Mid Cap: 101st -250th company in terms of full market capitalization. c. Small Cap: 251st company onwards in terms of full market

capitalization.

Focused on emerging

sectors/businesses that have

potential to deliver high growth

We look for businesses with

Economic Moat

Unique long term orientation that helps investors

Copyright 2018 | Axis Mutual Fund | Confidential 4

Traditional Life Cycle of a company

Emerging companies

High growth phase

But prone to higher risks

Business not yet well established

Superior growth profile

Established track record

Maintains flexibility

Lower risk compared to

smaller companies

Stable growth

Established business models

Reduced flexibility

Lower risk compared to mid cap

companies

Growth Phase

Newly established businesses

No track record

Prone to significantly higher risks

Mid CapsSmall Caps

Start-up Phase Mature Phase

Large Caps

Changes made to the portfolio over the last 1 year

Portfolio Characteristics July 17 July 18

No. of Stocks 48 37

Market Cap Mix

Large Caps: 12%

Mid Caps: 76%

Small Caps: 7%

(Remaining in cash &

cash equivalents)

Large Caps: 15%

Mid Caps: 67%

Small Caps: 7%

(Remaining in cash & cash equivalents)

Top 10 stocks (% of portfolio) 40% 43%

Top stocks with increased

exposure/entries

Change in exposure

(%) over last year

Top stocks with reduced exposure/

exits

Change in exposure (%)

over last year

Bajaj Finance Ltd 3.8% Bajaj Finserv Ltd -4.0%

Astral Poly Technik Ltd 3.6% UPL Limited -3.2%

Mahindra & Mahindra Financial Services Ltd 3.2% Berger Paints India Ltd -3.1%

Avenue Supermarts Limited 2.9% UPL Limited -3.1%

Mahindra & Mahindra Financial Services Ltd 2.7% Torrent Power Ltd -2.9%

Exposure as % of Net assets. 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 caps are defined as per SEBI regulations as below: a. Large Cap: 1st -100th company in terms of full market capitalization. b. Mid Cap: 101st -250th company in terms of full market capitalization. c.

Small Cap: 251st company onwards in terms of full market capitalization. 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.

Key sectors

Copyright 2018 | Axis Mutual Fund | Confidential 6

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. Past performance may or may not be sustained in

the future. Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may not

choose to hold the stock mentioned, from time to time. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s).

Auto & Logistics

• Improving economy and moderating ownership costs, with falling interest rates and fuel prices to drive gradual recovery in demand over coming years

Finance

• Asset quality pressure to taper off with an economic uptick, deleveraging in the corporate sector and peaking growth in stressed loans

Consumer & Media

• Indian consumer sector has been facing headwinds due to weak macro and benign input costs.

• Improving economy to drive high margins over the next years

• The advertising market is showing initial signs of a pickup after a prolonged period of sub-nominal GDP growth

Illustrations:

• Sector: Media & Publishing

• Strong management

• Healthy operating performance

• Impressive market share in the industry ( ~ 25% )

• Strong presence across locations coupled with growth levers like advertisements, etc.

Copyright 2018 | Axis Mutual Fund | Confidential 7

• Sector: Consumers

• Good quality management

• One of the top paint companies and market leader in industrial paint for past 4-5 decades

• Has consistent track record and one of the fastest growing paint companies

• Global presence

• Sector: Financial Services

• A subsidiary of a reputed financial institution; superior management team with good track record

• Niche business (rural housing finance) catering to under-banked, self-employed

• Superior asset quality along with sustainable low risk & consistent returns

• Return on Equity (RoE) of over 30% over last 7 years

Company A Company B Company C

This is merely an illustration to explain the investment philosophy. It does not constitute any advise to sell, buy or in any manner transact in this security and should not be considered as Research Report. The fund

manager may choose not to hold the stock at a later date. There may be other stocks in the portfolio which may not have had a similar performance. The mutual fund scheme(s), AMC, trust company, any

associate(s), director(s), employees etc may hold position in various securities from time to time. Investors are advised to consult their independent advisors. Past performance may or may not be sustained in

future.

Portfolio & Risk Parameters (July 18)

Top 5 sector holdings Risk parameters (3 years)

Top 10 stocks Current market cap split (% NAV)

Copyright 2018 | Axis Mutual Fund | Confidential 8

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. Past performance may or may not be sustained in

the future. Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may not

choose to hold the stock mentioned, from time to time. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). *Effective April 16th 2015, Asia Index Private

Limited (AIPL) has replaced S&P BSE Midcap with new set of values. The above ratios are calculated based on the new S&P BSE Midcap Index.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jul-16 Jan-17 Jul-17 Jan-18 Jul-18

Large Cap Midcap Small Cap

Invests at least 75% in mid cap companies

Copyright 2018 | Axis Mutual Fund | Confidential 9

Wtd. average portfolio market Cap: 32,312 crs.

Large Cap

Mid Cap

Small Cap

Past performance may or may not be sustained in future. Source of data: ACEMF, Market caps are defined as per SEBI regulations as below: a. Large Cap: 1st -100th company in terms of full market

capitalization. b. Mid Cap: 101st -250th company in terms of full market capitalization. c. Small Cap: 251st company onwards in terms of full market capitalization.

Performance

10

Past performance may or may not be sustained in future. Calculations are based on Growth Option NAV. Since inception (18 February 2011) 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. Shreyash Devalkar is managing the scheme since 23rd November 2016 and he manages 5 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).

Large Cap

Small Cap

SIP Performance as on July 31, 2018

11

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. 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 Midcap Index. Additional Benchmark: Nifty 50 Index.

Inception Date: Feb 18, 2011. Shreyash Devalkar is managing the fund since 23rd November 2016 and he manages 5 schemes at Axis Mutual Fund. Please refer to annexure for performance of all schemes

managed by the fund manager.

SIP Investments Since Inception SIP 5 Year SIP 3 Year SIP 1 Year SIP

Total Amount Invested 890,000 600,000 360,000 120,000

Market value as on July 31, 2018 1,909,775 957,647 464,873 130,321

Returns (Annualised) % 20.13% 18.78% 17.35% 16.39%

Benchmark Returns (Annualised) % 17.73% 18.43% 14.22% -2.11%

Additional Benchmark Returns (Annualised) % 14.18% 14.76% 17.87% 19.86%

Annexure

12

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. Past performance may or may not besustained in future. Calculations are based on Growth Option NAV. Since inception returns are calculated on ` 10/- invested at inception. Different plans have different expense structure. Planof the scheme for which performance is given is indicated above. Above data excludes returns of schemes which have not completed a year. Shreyash Devalkar is managing Axis Bluechip Fundand Axis Midcap Fund since 23rd November 2016 and Axis Equity Advantage Fund - Series 1 & 2 & Axis Multicap Fund since inception. Market caps are defined as per SEBI regulations asbelow: a. Large Cap: 1st -100th company in terms of full market capitalization. b. Mid Cap: 101st -250th company in terms of full market capitalization. c. Small Cap: 251st company onwards interms of full market capitalization.

Large Cap

Mid Cap

Small Cap

Product Labelling

Fund Name Riskometer Product Labelling

Axis Bluechip Fund(An open ended equity scheme predominantly

investing in large cap stocks)

This product is suitable for investors who are seeking*

• Capital appreciation over long term

• Investment in a diversified portfolio predominantly

consisting of equity and equity related instruments

of large cap companies

Axis Midcap Fund(An open ended equity scheme predominantly

investing in Mid Cap stocks)

This product is suitable for investors who are seeking*

• Capital appreciation over long term

• Investing predominantly in equity & equity related

instruments of Mid Cap companies.

13Axis 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 31st July 2018

14

Thank you