Axis Equity Hybrid Fund (An open ended hybrid scheme investing predominantly in equity and equity related instruments)

This product is suitable for investors who are seeking*:

Capital appreciation along with generation of income

over medium to long term

Investment in equity and equity related instruments as

well as debt and money market instruments

*Investors should consult their financial advisers if in

doubt about whether the product is suitable for them.

Best way is driving at moderate/economy speed with

controlled use of throttle

What gives best mileage

in a two wheeler

vehicle?

Commuter motorcycles usually come with an economy

indicator or a „green zone‟ painted on speedometer to display

sweet spot

2

Making the ride frugal!

MODERATE SPEED

Consumes less fuel

Offers optimum grunt

LESS THROTTLE MAXIMUM MILEAGE

Increases fuel efficiency

Reduces load on engine

Gives better control on the vehicle

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Making the ride frugal!

EQUITY

Opportunity to capture growth

Potential of higher returns

FIXED INCOME RISK ADJUSTED RETURNS

Potential of higher return with relatively

lesser risk

Stability by being less volatile

Regular income generation

Minimum -2.6 2.4 1.1

Maximum 59.5 12.6 41.1

Average 17.3 6.9 14.5

Std Deviation 10.0 2.5 7.1

3 year performance (Rolling return - Apr 02 – Mar 19)

Risk Adjusted Return: 70% Equity + 30% Debt with monthly rebalancing. Equity: Nifty 50 TRI Index, Fixed Income: Crisil Composite Bond Fund Index; Data period: April 2002 – 31st Mar 2019. Source:

MFI, Axis Internal Analysis. Past performance may or may not be sustained in future. For illustration & explanation purpose only. Does not reflect performance of any scheme. All numbers are

annualized. 4

Different Reactions Every asset has its unique benefit in a portfolio to achieve a common goal

RECESSION:

Low growth, low inflation, falling interest rates Underperform Outperform Neutral

RECOVERY:

Medium growth, stable inflation, stable interest rates Outperform Neutral Neutral

GROWTH:

High growth, stable inflation, stable to rising interest rates Outperform Neutral Neutral

OVERHEATING:

High growth, rising inflation, rising interest rates Neutral Underperform Neutral

EQUITY DEBT CASH 5

DIVERSIFIES AND

REDUCES RISK

TAILORED TO YOUR

RISK PROFILE

BETTER TAX

EFFICIENCY

OFFERS STABLE

RETURNS OVER THE

MEDIUM TERM

Solution: Asset Allocation Appropriate asset allocation gives confidence though ups and downs of the market

Key ingredient of successful investing

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NORMAL INVESTOR SMART INVESTOR

MARKET TIMING Tends to react to every market movement,

thus highly exposed to uncertainty

Investment linked to the risk profile and not

current market levels

CHASING THE HOTTEST

TREND

Continuous portfolio churn restricts the

portfolio from long term benefits

Steady Allocation over time

CYCLES OF GREED AND

FEAR

Irrational investment decision Asset allocation allows investors to “Buy

low-Sell high”

Smart choice! Asset allocation helps avoid market traps

Lower correlation

among asset classes Periodic Rebalancing

Reasonable downside

protection

Benefit from active

management

How does Asset

Allocation work to

benefit portfolios?

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Equity: Nifty 50 Index, Debt: Crisil Composite Bond Fund Index; MFI, Axis Internal Analysis. Past performance may or may not be sustained in future. For illustration & explanation purpose only. Does not reflect performance of any scheme.

Lesser the correlation among assets, lower the risk Lower correlation among assets improves diversification gains

Not all asset class will move in same direction at all

times.

If correlation is higher, sensitivity to market

movement rises. This can add to overall risk.

Lower correlation acts as hedge against each other and

hence reduces risk and optimizes return

DEBT EQUITY

Returns (CAGR)

Bull market

(2004 - 07) 2.4% 48.6%

Bear market

(2008 - 09) 18.6% -50.3%

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Equity: Nifty 50 Index, Debt: Crisil Composite Bond Fund Index; MFI, Axis Internal Analysis. ^Effective risk: Standard deviation based on daily returns for the investment period. Investment Period: (Apr 02 – May 18). Effective allocation is the allocation at the end of the period (Mar 19)

Diminish the tendency for “portfolio drift,” and thus potentially reduce their exposure to risk relative to their target asset allocation

Lowers overall risk and optimizes returns relative to target allocation

Rebalancing within the fund makes it cost & tax efficient for investors as compared to investors doing it at their end

Allocation at the

start of investment

Effective

allocation Effective Risk^

WITH

REBALANCING

70 Equity + 30 Debt

70 Equity + 30 Debt

13%

WITHOUT

REBALANCING

70 Equity + 30 Debt

90 Equity + 10 Debt

16%

Rebalancing benefit Effective risk management technique

SIMPLE INFOGRAPHIC SLIDE Downside protection through diversification Downside protection aim to reduce the frequency and/or magnitude of capital losses, resulting from significant asset market declines

Aims to limit the impact of potential losses from market downturns

If the markets fall by Increase needed to

recover

-10% 11%

-15% 18%

-20% 25%

-50% 100%

-80% 400%

Higher the fall, larger is the increase required to recover

Fixed Income: CRISIL Composite Bond Fund Index, Equity : Nifty 50 Index. Drawdown is the peak-to-trough decline during a specific recorded period of an investment. Past performance may or may not be sustained in future. Drawdown is the percentage between the peak and the subsequent trough.

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-60%

-50%

-40%

-30%

-20%

-10%

0%

Mar-03 Mar-05 Mar-07 Mar-09 Mar-11 Mar-13 Mar-15 Mar-17 Mar-19

Equity

Fixed Income

Fixed Income Funds

Conservative Hybrid

Equity Savings Funds

Dynamic Equity Allocation Funds

Axis Equity Hybrid Fund

Equity Funds

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Indicative positioning on risk return estimates from strategy based indices. For illustrative purposes only

Axis Equity Hybrid Fund Product Positioning : Balanced Approach to Investing

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Please refer the Scheme Information Document for detailed description on asset allocation and investment strategy

Scheme Proposition An open ended hybrid scheme investing predominantly in equity and equity related instruments

Equity Allocation

65-80%

Debt Allocation

20-35%

Best of Both Worlds

Equity component will

follow a multi-cap bottom

up best ideas strategy

Debt component will follow

a tactical approach across

sovereign bonds and

corporate bonds

Risk return tradeoff is likely to be favorable over the

medium term

Good ideas can do better irrespective of its

sector/theme/size

Focus on fast growing sectors with bottom up stock

picking approach

Equity

Investment Approach

Large cap bias with up to 30% in midcaps*

*Investment focus is based on current market outlook and is subject to fund manager

discretion. Investors are advised to refer SID for investment strategy of the scheme

EQUITY

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The portfolio duration and credit exposures will be

decided based on a thorough research

Flexibility to invest in the entire range of debt

instruments across credit/duration spectrum

Active duration management

Debt

Investment Approach

Invest in best ideas

*Investment focus is based on current market outlook and is subject to fund manager

discretion. Investors are advised to refer SID for investment strategy of the scheme

DEBT

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Stocks: Nifty 50 TRI Index, Bonds: Crisil Composite Bond Fund Index;. Source: Axis Internal Analysis. Past performance may or may not be sustained in future. Index values are normalized to 100. Data Period: 1st April 2002 – 29th Mar 2019.

Simulated index performance with risk measures Asset allocation targets risk adjusted returns

STOCKS BONDS 70% STOCKS +

30% BONDS

Return 16.3% 7.0% 14.0%

Risk 18.4% 2.1% 12.9%

0.0

200.0

400.0

600.0

800.0

1000.0

1200.0

1400.0

Mar-03 Mar-05 Mar-07 Mar-09 Mar-11 Mar-13 Mar-15 Mar-17 Mar-19

Stocks Bonds Equity Hybrid Index

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Current Portfolio Update – 30th April 19 Top 10 Stocks % of NAV

Tata Consultancy Services Limited 6.7%

HDFC Bank Limited 6.5%

Kotak Mahindra Bank Limited 5.9%

Bajaj Finance Limited 4.5%

Housing Development Finance Corporation

Limited 4.1%

ICICI Bank Limited 3.9%

Reliance Industries Limited 3.3%

Infosys Limited 2.4%

Bajaj Finserv Limited 2.3%

Container Corporation of India Limited 2.0%

Maruti Suzuki India Limited 2.0%

Allocation & maturity is based on the current market conditions and is subject to changes depending on the fund manager‟s view of the markets. ^The yield to maturity given above is based on the portfolio of funds as on date given above. This should not be taken as an indication of the returns that maybe generated by the fund and the securities bought by the fund may or may not be held till their respective maturities. The calculation is based on the invested corpus. 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).

Debt

Average Maturity 1.4 years

Modified Duration 1.1 years

YTM^ 8.44%

Rating Mix (High Quality Portfolio)

AAA 77%

Below AAA 23%

Instrument wise (Corp Bond Portfolio)

Corporate Bonds 70%

Money Market Instruments 30%

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Key themes

Finance Information Technology

Structural growth story linked to low credit

outstanding, GDP growth and market share

gains for better quality players

Increasing per capita income leading to

improved standard of living and hence higher

discretionary spends

Consumer

Low penetration with lower interest rate

environment bodes well for the sector growth

Top stocks

HDFC Bank Limited Tata Consultancy Services Limited Avenue Supermarts Limited

Kotak Mahindra Bank Limited Infosys Limited Asian Paints Limited

Bajaj Finance Limited Tech Mahindra Limited Hindustan Unilever Limited

Housing Development Finance Corporation Limited Titan Company Limited

ICICI Bank Limited ITC Limited

Portfolio biased towards large caps : 89% in Large Cap & 11% in Mid & Small cap

Please refer to SID for detailed asset allocation and Investment Strategy. Subject to provisions of SID, portfolio Allocation/Positioning will be based on the

prevailing market conditions and may change depending on the fund manager‟s view. Data as on 30th April 2019.

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Features at a Glance

CRISIL Hybrid 35+65 - Aggressive

Index

BENCHMARK TYPE

An open ended hybrid scheme

investing predominantly in equity

and equity related instruments

NAME

Axis Equity Hybrid Fund

Rs. 5,000 and in multiples of Re.

1/- thereafter

Minimum Additional Purchase

Amount of Rs.100 and in multiples

of Re. 1/- thereafter

MINIMUM APPLICATION AMOUNT EXIT LOAD

If redeemed/switched out on or before

12 months from the date of allotment:

- For 10% of investment: Nil

- For remaining investment: 1%

If redeemed/switched out after 12

months from the date of allotment: Nil

FUND MANAGER

Ashish Naik (Equity), R Sivakumar

(Debt)

Special Feature : Automatic Encashment Plan

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Past performance may or may not be sustained in future. Please refer to SID for detailed information on the above feature. *Tax paid is calculated @15% if redeemed before 1 year & @10% if redeemed after 1 year as the invested fund is assumed to be an equity fund Tax is calculated excluding cess and surcharge # Dividend distribution tax calculation for illustration purpose only, had the client withdrawn using a dividend option instead of AEP option ^ Dividend distribution tax is considered @11.648%, the rate applicable for individuals in an equity fund. Benefit of Indexation is not considered for calculation of capital gains amount in the above example. Dividend distribution tax calculation for illustration purpose only. The tax calculation assumes payout of the amount as dividend by Schemes. Declaration of dividend is subject to discretion of Trustee. As such there cannot be any assurance given on rate of dividend or on frequency for declaration of dividend. The information set out above is included for general information purpose only and does not constitute legal or tax advice. In view of the individual nature of the tax consequences, each investor is advised to consult his or her own tax consultant. Please consult your legal /tax advisor before making an investment

Illustration:

Investment Amount 10 lacs

Monthly Automatic Encashment Rs 7000

Tenor 24 months

XIRR (assumed) 6.5%

Total Withdrawal 1,68,000

*Total Capital Gains Tax Paid Rs 1,800

DIVIDEND OPTION AEP FACILITY

Amount of dividend is at fund manager‟s

discretion

Amount of monthly cashflow is pre decided

by the investor

Flexibility of dividend declaration is with fund

manager

Pre defined frequency of monthly withdrawal

Taxed at 10% (DDT) Capital gain tax proportionate to the amount

of withdrawal

This feature aims to provide a tax efficient

option for regular income

WHAT is AEP?

Investors can redeem a fixed percentage of

the investment value on a monthly basis

HOW does it work?

Investors looking for regular cash flow can

consider Automatic Encashment Plan as an

added feature under the scheme

WHY choose this option?

Product Label, Statutory Details and Risk Factors

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Data as on 30th April 2019.

Disclaimer: 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). Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC). Risk Factors: Axis Bank Limited is not liable or responsible for any loss or shortfall 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 an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates shall be liable for any damages including lost revenue or lost profits that may arise from 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 make modifications 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.

Thank You